Multinationals, Global Value Chains and Governance by Peter Hertenstein

Author:Peter Hertenstein [Hertenstein, Peter]
Language: eng
Format: epub
Tags: Social Science, Ethnic Studies, American, Asian American Studies, Regional Studies
ISBN: 9780429748929
Google: w5SpDwAAQBAJ
Publisher: Routledge
Published: 2019-08-16T03:48:55+00:00

The Chinese assemblers, on the other hand, handle projects rather differently: “They are accustomed to working without long schedules and in-depth processes” (Interview, Mahle case). If circumstances change, like expected sales of a vehicle, “the business partner is expected to respond to this change of heart – both quickly and flexibly. Any difficulties that may arise also need to be solved instantly” (Interview, Mahle case).

Adjusting to changing R&D processes for global platforms

Mahle set up a widespread network of R&D centers to accommodate to its global clients. Mahle employs approximately 6,000 engineers in research and development. These work in 15 major R&D centers, which are distributed to ensure collocation in all major automotive hubs: Stuttgart, Northampton, Detroid, Tokyo, Shanghai, Pune, and Sao Paulo (Germany, Great Britain, the USA, Brazil, China, India, and Japan respective). Such a network of collocated R&D centers is necessary for Mahle, due to the nature of its products. Mahle produces highly integral systems and has a unique systems knowledge in engine thermal management and engine peripherals. Such systems require extensive information exchange with the other developing firms like engine manufacturers or assemblers. Mahle is deeply involved in the engine development process of Volkswagen. Since emission standards are different in regions (e.g. EU, NAFTA, China), engines are adapted to meet different regulations. This requires Mahle to have R&D centers in close proximity to where the engines are adapted to local requirements. “Mahle has established itself as a leading global development partner to the automotive and engine industry” (Mahle 2015). “Vehicles on the whole are becoming increasingly complex, since more and more components and systems are networked and interact with each other” (Mahle 2015).

Components such as engine cooling systems are highly integral. Mahle-Behr is therefore closely cooperating with the assemblers and is an integral part of the vehicle development process. Thermal management of engines is crucial for combustion engines to achieve maximum efficiency and research emission standards. Mahle’s expertise in thermal management is highly valued by the assemblers and engineers developing the new generations of engines. Furthermore, thermal management is also important for future electronic drive train systems (especially for battery cooling).

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