A major change in automobile manufacturing could pave the way for a revolution in how cars are bought, fixed and resold. Gigacasting, which reduces the number of car panels, has the potential to lower prices but can complicate repairs and transfer costs to owners.
Tesla Inc. pioneered large-scale die-casting in the auto industry when it started combining dozens of chassis pieces into one entire section for its Model Y in 2020. Using Giga Press equipment from Italian supplier Idra Group, gigacasting (also called megacasting) cuts the number of welds and reduces weight. These massive machines work by applying 9,000 tons of force upon molten aluminum alloys within a casting mould, punching out larger panels that can weigh more than 200 kilograms (440 pounds) apiece.
While the reduction in production steps requires upfront investment and a rethink of the assembly process, it could lead to a 30 percent saving in manufacturing costs.
“The reconfiguration of the dance played behind factory walls will forever change economies within automotive” industry, S&P Global Mobility analysts Edwin Pope and Mengyin Tao wrote last month. As much as 20 percent of traditional stamped and joined body parts could be replaced with gigacasting by 2030, they estimate.
Toyota Motor Corp. unveiled plans to embrace the approach in June when it invited media and analysts to a research facility near Mount Fuji. General Motors Co. and Ford Motor Co. also look set to incorporate gigacasting into future models, most likely their electric vehicles.
The existing modular method of carmaking, in use for more than a century, has the benefit of allowing relatively easy repairs. Early models had a front and rear bumper sticking out from the chassis purely to limit damage to the rest of the car in a collision. Structural destruction is rare in low-speed accidents, so replacing a few parts could be done in a day.
Critics of gigacasting contend that repairs are more costly and complicated because large sections of the car are affected in even the most minor fender bender.
Tesla disagrees. “There's a misconception that traditional bodies are easy to repair, but they are made of multiple materials and multiple joining methods,” Lars Moravy, vice president of vehicle engineering, said in a July investor call.
Both critics and gigacasting proponents are right. Cars are no longer simple to fix due to modern technology. Advanced driver assistance systems deployed on vehicles are a response to developments in sensors and software, as well as regulations requiring safety features such as rear cameras.
A crash nowadays will likely result in damage to the electronics built into panels including doors, bumpers, fenders and the trunk. The first task a body shop undertakes is to plug into a car’s onboard-computer and analyse all the sensors and controllers to check what’s damaged. Broken components need to be replaced and recalibrated, which is costly and time consuming.
Yet huge gigacast pieces aren’t perfect either. Images have popped up online of cracks appearing in aluminum castings on Tesla models, while industry groups and insurers are concerned about the cost and complexity of repairing such large sections. Premiums may rise for cars that use gigacasting, according to the German Insurance Association. Tesla is working to address those concerns, including teaching body shops how to fix them.
While new repair methods will undoubtedly be developed so that gigacast cars can be put back on the road, the extra time and expense to patch up and analyse damage to a single massive panel is likely to result in more vehicles being written off by insurance companies. That may not be a bad thing.
If insurers increasingly elect to replace a model instead of mending it, an entire industry could open up in refurbishing and reselling cars. While the current second-hand market revolves around buying and selling largely roadworthy vehicles, a refurb business would be akin to what electronics companies like Apple Inc. operate. IPhones are bought with three options in mind: fix the device, certify it as in working order, and then sell it; cannibalise the smartphone for components that go into new or refurbished model; or break it up and recycle the scraps.
Automotive recycling is already a huge industry in the US, generating $32 billion in revenue annually, with most cars written off by insurers entirely ripped apart or broken down for their parts. Cooperation between carmakers, fleet operators such as rental companies, and insurers offers the prospect of more vehicles being put back on the road.
And the presence of hundreds of sensors on a car, along with sophisticated monitoring software and meticulous records, makes tracking the lifetime health of a vehicle quite easy. An insurance company, carmaker, or licensed repairer can instantly see not only what damage occurred recently but the vehicle’s entire history — from fender benders to serious crashes. That information makes assessing its value quick and easy, and allows a refurbishment and resale strategy to be mapped out.
As cars increasingly look like consumer gadgets, there’s a growing opportunity to mimic the consumer electronics industry by tracking the product’s history, reducing waste, and refurbishing vehicles for a new life on the road.
Tim Culpan is a Bloomberg Opinion columnist. Views do not represent the stand of this publication.
Credit: Bloomberg
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