Charles R. Goulding and Preeti Sulibhavi examine how 3D printing helps automakers tackle economic pressures, trade challenges, and sustainability goals while revolutionizing production and design processes.
The automotive industry’s drive to lower costs is shaped by global trends, ranging from economic pressures to technological innovations. The U.S.’s big three including Ford, GM and Stellantis, would particularly be hit hard by the 25 percent proposed tariffs on Mexican and Canadian imports. Stellantis has core business issues resulting in the abrupt resignation of its CEO, Carlos Tavares.
The large luxury brand, German automakers, along with Volkswagen, are facing headwinds and are very concerned about potential tariffs on their automobiles and auto parts. Volkswagen and Bosch, the larger auto parts suppliers, have recently announced major layoffs.
As traditional cost-cutting measures face diminishing returns, additive manufacturing (3D printing) emerges as a key enabler in reshaping the sector.
Here’s an in-depth exploration of these dynamics, complemented by recent examples of companies successfully leveraging 3D printing.
Global Cost-Reduction Pressures
- Manufacturing Challenges and Trade Policies:
- BYD’s Supplier Demands: BYD, China’s leading electric vehicle (EV) manufacturer, recently called for a 10% reduction in supplier costs, reflecting the intense pressure on suppliers to stay competitive in the rapidly evolving EV market.
- Tariff Impacts: Proposed tariffs by the U.S., particularly the 25% levy on Canadian and Mexican auto parts, present challenges for American automakers like Ford, GM, and Stellantis. These tariffs not only inflate costs but also destabilize supply chains.
- Economic and Workforce Adjustments:
- Layoffs across the industry reflect cost containment efforts. For instance, Nissan announced 9,000 layoffs at its Tennessee plant, and Bosch has scaled back operations with significant global workforce reductions, that could approach 5,500 jobs. Additionally, AutoZone plans to close 700 stores, directly impacting the auto parts supply chain.
- Shifting Production Geographies:
- The Biden administration’s US$6 billion loan to Rivian for a new Georgia facility showcases government support for localized EV manufacturing. This aligns with broader trends of reshoring critical production capabilities while integrating advanced technologies like 3D printing to achieve cost efficiency.
Challenges and Opportunities in Widespread Adoption
Despite its advantages, 3D printing is not without challenges. The technology faces hurdles in scaling for high-volume production and achieving cost parity with traditional manufacturing methods. However, advancements in material science, simulation tools, and localized manufacturing are bridging these gaps.
- Material Efficiency: Additive processes minimize waste, building parts layer by layer. Companies like BMW and Audi are also exploring recycled materials, contributing to environmental goals.
- Supply Chain Resilience: By enabling localized production, 3D printing reduces dependency on global supply chains, a critical advantage during geopolitical or pandemic-induced disruptions.
The Use of 3D Printing in Automotive Applications
- Ford’s Strategic Use of 3D Printing:
- Spare and Legacy Parts: Ford employs 3D printing to create parts for vehicles that are no longer in mass production. By using additive manufacturing for legacy parts, Ford can respond to customer needs without maintaining costly inventories or reactivating old manufacturing lines. This has been particularly impactful for classic car enthusiasts and fleet operators seeking rare components.
- Prototypes and Engine Components: Ford has used 3D printing to rapidly prototype engine covers and lightweight structural parts. These designs incorporate intricate geometries, enhancing strength while reducing weight, which translates to better fuel efficiency and performance.
- BMW’s Lightweight and Aerodynamic Innovations:
- Lattice-Structured EV Parts: BMW integrates 3D printed lattice structures into its electric vehicles, such as battery housings and interior components. These parts reduce weight without compromising safety or strength, directly improving the range and efficiency of EVs.
- Custom Aero Parts: In its high-performance vehicles, BMW uses 3D printing to produce complex aerodynamic components like spoilers and diffusers. These parts are tailored for drag reduction, enhancing both fuel efficiency and handling.
- Aston Martin’s Callum Vanquish Customization:
- Brake Ducts and Structural Enhancements: Aston Martin’s Callum Vanquish 25 features bespoke 3D printed parts, including brake ducts integrated into a revised bumper design. These components not only improve performance but also allow the manufacturer to incorporate modern technologies into a classic framework.
- Hidden Replacement Parts: The use of 3D printing enabled Aston Martin to replace obsolete components in the limited-edition model, showcasing the role of additive manufacturing in bespoke production and restoration.
- GM’s Cadillac Blackwing Series:
- HVAC Ducts and Aluminum Brackets: The Cadillac Blackwing V-Series marks General Motors’ expansion of 3D printing into production vehicles. Two HVAC ducts are crafted using Multi Jet Fusion, while an aluminum bracket employs Powder Bed Fusion technology. These parts represent GM’s commitment to incorporating 3D printing into end-use applications.
- Shift Knob Medallions: In addition to structural parts, GM designed stainless steel medallions for the Blackwing’s shift knobs using Binder Jetting. This highlights 3D printing’s potential in aesthetic and functional components
Broader Implications for the Industry
These detailed examples highlight how additive manufacturing helps automakers:
- Accelerate design cycles through rapid prototyping.
- Improve sustainability by minimizing material waste and enabling recycling.
- Enhance performance via lightweight, high-strength components.
- Tailor vehicles to niche markets with customized features and designs.
Such applications underscore the growing potential of 3D printing as a mainstream production tool in the automotive industry.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
The automotive industry stands at the crossroads of technological transformation and economic pressure. Additive manufacturing offers not just a cost-saving measure but a strategic advantage in innovation, customization, and sustainability. As manufacturers like Ford, BMW, and GM continue to integrate this technology, the promise of a more efficient and adaptable automotive sector comes closer to fruition. By embracing 3D printing, automakers can mitigate global challenges while paving the way for future advancements in vehicle design and production.
Large-scale area 3D printing from contract manufacturers like Seurat Technologies in Boston may be worth looking into.
