IZB 2024 How Suppliers Aim to Help VW Out of the Crisis

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At this year's IZB in Wolfsburg, Germany, suppliers showcased new ideas and products. VW hopes these innovations will bring cost-effective solutions to help compete with rivals from China and the USA.

"Innovations at Low Costs with High Quality—Volkswagen is looking to its suppliers to make the impossible possible. 'We can’t do it without you,' said VW Purchasing Chief Dirk Große-Loheide at the International Suppliers Fair (IZB) in Wolfsburg. VW doesn't manufacture 60 to 70 percent of a car’s components itself, instead sourcing them from suppliers—a figure that reaches up to 80 percent for other automakers. But VW must reduce costs if it’s to compete with Chinese manufacturers and Tesla, the pioneer of electric vehicles. 

Simultaneously, the automaker needs continuous innovation, as competitors are advancing technologically, with some, like Tesla in vehicle software and BYD from China in battery systems, already ahead. To address this, VW regularly hosts the IZB in Wolfsburg, the world’s largest showcase of this kind.

VW CEO Schäfer Promises Enhanced Gigacasting

Among the 843 exhibitors from 33 countries vying for VW contracts, many are engaging in this cost and innovation challenge. In car body production, Tesla’s Gigacasting method has demonstrated how billions can be saved in manufacturing by casting large sections of the car frame in one piece, instead of welding together dozens of small parts. For instance, Tesla’s bodywork for the front, rear, and battery housing is made from large aluminum casts, replacing the traditional multi-part steel construction.

VW intends not only to adopt but also improve upon this concept. 'Casting large vehicle parts in one piece is great—we’re going to do it too,' said VW brand chief Thomas Schäfer during the VIP tour at IZB. However, VW aims to address Gigacasting’s drawbacks: cast parts are difficult to repair and don’t absorb crash energy effectively, instead directing impacts toward the car’s interior. Schäfer assured that VW would resolve these issues while ensuring reparability. Reports at IZB suggested that the upcoming VW ID 2, an electric model in the Polo class, will feature large cast parts, such as for its battery housing."

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Gigastamping vs. Gigacasting

Bad news for traditional metal processors like the Spanish company Gestamp? Not necessarily, according to Ulf Sudowe, responsible for chassis production at Gestamp. His solution to producing car bodies more affordably in the future is “Gigastamping instead of Gigacasting.” Sudowe explains that “we can form 12 to 16 parts in one step,” allowing for larger car body components like side panels or door frames to be made in a single piece. This approach reduces costs, energy consumption, and weight. Additionally, the stamped parts are optimized for crash safety and weight, and are highly recyclable since, as Sudowe puts it, “you should be familiar with your scrap.”

 Another advantage of Gigastamping is that “automakers can continue using their existing machines.” In contrast, Gigacasting would require presses to be replaced by massive casting machines, a costly investment. Gestamp operates 115 production sites globally, including 11 in China, where there is significant interest in this approach.

Display Integration in the Windshield

The Korean automotive supplier Hyundai Mobis also showcased cost-saving innovations without sacrificing tech advancements. Recognizing the high cost of multiple screens in vehicles, CEO Axel Maschka notes that “installing two or three screens, or even one large screen, can cost well over 100 euros (approx. 108 USD).” Hyundai Mobis, in collaboration with German optics specialist Zeiss, has developed a system that turns the lower portion of the windshield into a display.

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Electronic Sun Visor

Cubos Technologies has specialized in bidirectional charging, with their Solar-Link system allowing an electric vehicle to serve as a power storage unit for existing solar installations. When the sun shines, the vehicle charges; at night or during a power outage, the car battery can supply power to the house.

American supplier Gentex has developed an innovative interior feature: an electronic sun visor. Made from dimmable glass, the visor provides protection from glare without obstructing the driver’s view of oncoming traffic or road signs. This continuously dimmable glass shields drivers from sunlight and bright reflections. "Modern LED headlights are more dazzling for oncoming traffic than traditional headlights," says Craig Piersma, Gentex’s marketing director. Similarly, low sun angles can cause significant glare. This innovation reduces glare without overly limiting visibility, thus enhancing safety. With a unique twist, the glass sun visor can transform into a mirror with the push of a button.

Integrated Battery Systems

Dräxlmaier showcased a comprehensive approach to EV battery systems at the Wolfsburg event, covering everything from control electronics and charging systems to battery modules. Their approach starts with optimal use of available space and efficient heat distribution. Maximum charging current is also a crucial factor, impacting charging speed for the end customer.

 In addition to performance and safety, sustainability and seamless battery integration are key criteria. Dräxlmaier is committed to minimizing the carbon footprint across the product lifecycle. "With over a decade of experience in high-voltage battery systems, Dräxlmaier can adopt a holistic approach, focusing equally on the battery, control electronics, and charging system," said Christoph Mahler, Head of Key Account VW.

A New Competitor for Continental from China

Chinese supplier Desay SV presented extensive electronics offerings, aiming to establish a foothold in Europe. Originating from Siemens VDO’s former Chinese division, Desay has become a leader in screens and assistance systems in the Chinese market. Yong "Edgar" Yang, the new European head, highlighted their domain controllers for automated driving (Level 2+), already mass-produced in China, and noted, "We deliver the most Nvidia chipsets worldwide in the automotive market."

 Desay’s display technology is now entering the European market, with initial production orders secured and plans for a facility in Spain. ADAS systems are expected to follow later. "We aim to build trust with our flagship product, the displays," says the Europe CEO.

Automated Cost Analysis for ECUs

To reduce costs, it’s essential to monitor competitors’ products. Saarland/Germany-based SME K-Lens, along with Polarix, has automated the cost analysis of populated circuit boards. Their "EE-Scanner" produces a list of all components, including details like manufacturer, package, and part number within minutes. This allows users to calculate both component and processing costs, explained CEO Stefan Beinkämpen.

 Using an advanced optical system, the scanner creates images of components from various angles, not just top-down, allowing it to function as a quality assurance system. K-Lens developed the technology in partnership with Polarix Partners.