Why Do Rival Carmakers Share Platforms?

In an increasingly cut-throat automotive industry, car manufacturers have formed some unusual alliances with their competitors
Why Do Rival Carmakers Share Platforms?

The automotive industry is notoriously lucrative, and it didn’t get to be that way by accident. Car makers are always looking for ways to make more money, and this is precisely the reason why we see manufacturers sharing a lot of components with other brands.

Take the Mazda ND MX-5, a car that’s designed and assembled by Mazda in Japan. Then there’s the Fiat 124 Spider, a car that’s a rebodied Mazda ND MX-5 with a Fiat engine. The reason? With FCA in a bit of financial trouble, it simply couldn’t afford to design a new sports car model from the ground up, so as a result, it outsourced Mazda’s expertise.

Why Do Rival Carmakers Share Platforms?

The way this works is pretty simple: Mazda makes money on everything it sells to Fiat, while Fiat makes money on its new end product, the 124.

Another benefit for Mazda is that it allows the comparatively small automaker to increase its scale of production. This means that it can run larger factories and justify producing more components. This in turn creates the opportunity to increase its scale of production, which can increase Mazda’s profit margins.

Why Do Rival Carmakers Share Platforms?

So why doesn’t the Fiat use a Mazda engine? As it turns out, using a Fiat engine not only differentiates the 124 from the MX-5, it’s also very likely cheaper for the Italian brand; Fiat makes a lot of small Multiair four-cylinder engines anyway, so it doesn’t have to do too much re-tooling to be able to make some more for the 124.

Why Do Rival Carmakers Share Platforms?

Done properly, sharing platforms leaves both companies with a pretty good finished product. Done poorly, platform-sharing can result in an abomination. This is particularly true of the odd joint venture between Alfa Romeo and Nissan in the 1980s. The finished product, the Arna (above), took Nissan’s characteristically nondescript styling and matched it up with Alfa Romeo’s notoriously poor engineering.

Although uneasy alliances have allowed for some of the world’s greatest cars to be made, the business blunder between Alfa Romeo and Nissan resulted in one of the worst vehicles of all time.

#ecarnomics

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Comments

Jeep Wave

No

04/25/2017 - 10:37 |
211 | 2

We all knew this was coming in the comment. ;)

04/25/2017 - 11:02 |
27 | 2

Nah, this was a lovechild, the Fiat 124 is like the result of an arranged marriage. Pretty decent result but the love wasn’t there.

04/25/2017 - 11:32 |
13 | 0

Is there even a difference between the two?

04/25/2017 - 12:58 |
1 | 0

They’re not rivals. Toyota owned Scion until they killed the brand, and they have a large stake in Fuji Heavy Industries, the company who owns Subaru.

04/25/2017 - 14:22 |
3 | 0
Agustín J. Ruatta

In reply to by Jeep Wave

No what?

04/25/2017 - 15:06 |
1 | 0
Anonymous

It’s all about profit and appealing to the market these days, which is why popular manufacturers are making less enthusiast cars and why Mitsubishi has pretty much given up.

04/25/2017 - 10:37 |
13 | 0
G coffey

In reply to by Anonymous (not verified)

Amen

04/25/2017 - 11:25 |
0 | 0
InjunS2K

In reply to by Anonymous (not verified)

I still hold to the opinion that Mitsubishi would make money should they make an affordable enthusiast car, it’s the only real credibility they have left in the auto industry. Racing legends don’t fade away too easily

04/25/2017 - 11:46 |
19 | 0
Anonymous

Friend or Foe?

04/25/2017 - 10:39 |
0 | 0
Kevin 15

[DELETED]

04/25/2017 - 13:09 |
0 | 0
Kevin 15

Indonesia please

04/25/2017 - 13:16 |
11 | 1
Fillmore (sleeperpooper)

In reply to by Kevin 15

And terios with rush, agya with ayla, sigra with cayla..

04/26/2017 - 08:22 |
0 | 0
Ahmad Ilham Abhy

In reply to by Kevin 15

daihatsu is owned by toyota, tho

04/27/2017 - 11:14 |
1 | 0
Fastlane Blocker

Hey @Kyle since you are a community manager and well I am a moderator for two BMW Forums, I have more than one person who wants an additional BMW Forum for classics (BMW classics, everything before E30 + Z1 and Z8 I would suggest) Cheers =)

04/25/2017 - 13:22 |
2 | 0
TheFalko

As far as I know Fiat is also using a different engine because of european eco-regulations. The Mazda engine is not eco-friendly enough for this.

04/25/2017 - 13:27 |
0 | 0

mazda sell nd mx5 in europe so they did adapt too

04/25/2017 - 21:16 |
3 | 0
Anonymous

Honda ridgeline and chevy avalanche, anyone?

04/25/2017 - 13:41 |
1 | 1
Anonymous

Plus the Fiat is turbocharged and the MX-5 isnt. The Italians are known for their sorceress ways.

04/25/2017 - 13:45 |
0 | 0
Max Schröder

Until last year, Germany got re-badged Chryslers as Lancias.
It’s kind of the same, but worse.

04/25/2017 - 13:45 |
1 | 0

Then what happened
Because we still get those and in addition we get tons of ads about how “ecochic” the 546th new special edition of the Yosilon is. IT’S SIMPLY UGLY PEOPLE
GIVE UP

04/25/2017 - 22:10 |
0 | 0