7 benefits of engine assembly outsourcing for niche volume OEMs
No matter what market sector they service, OEMs and tiered suppliers that operate at niche volumes face a common complex challenge. How to continue delivering internal combustion engines for existing and legacy products lines whilst preparing for future powertrain technologies?
This dual demand presents a series of production challenges that threaten profitability, efficiency, and brand reputation. With declining volumes, rising technical complexity, and unpredictable demand, subcontracting legacy engine production to companies like Ricardo has become a strategic move for forward-thinking OEMs and tiered suppliers.
Here are seven key benefits of outsourcing legacy engine assembly to Ricardo, and why it’s essential for future-proofing production.
1. Save the investment for the game changing future programmes
Phasing out production of older engine models in favour of technological advancement is a natural part of the product life cycle, but it is likely that delivery off these legacy engines will still be important to support an existing consumer base, as well as critical fleets including vehicle platforms. This means that OEMs face a balancing act of continuing to support production of aging product lines and redirecting resources toward the future models which could be the next big step for their business.
Outsourcing legacy engine assembly reduces the need for costly infrastructure investments and precious floor space which could be dedicated to developing the next technological step in an OEM’s propulsion portfolio. Ricardo’s subcontracting solutions offer a cost-effective production model tailored to the requirements of our customers, allowing them the freedom to focus on resourcing the game-changers of the future.
2. Scalability to respond to unpredictable demand
Aftermarket support for existing and legacy products is an important facet of an OEM’s interaction. Failing to meet demand risks customer dissatisfaction and market share loss but replacement engine orders for legacy products are sporadic and difficult to forecast, particularly where multiple build variants exist. OEMs risk underproducing and losing sales or overproducing and wasting resources and using up valuable warehouse space.
Contracting in-service legacy engine supply to a specialist subcontractor like Ricardo allows OEMs to scale production up or down without the burden of maintaining underutilised facilities. Whether it’s a few hundred units or a short-run variant, Ricardo’s flexible assembly lines adapt to demand. With decades of experience managing seasonal and changeable demand cycles in niche volumes, OEMs can trust Ricardo to supply legacy engine models with confidence.
3. Manage the intrinsic challenges of niche volume production
Niche volume production programmes don’t benefit from the economies of scale that high-volume programmes do, but they still require the same level of precision and investment to keep the operation agile to the demands of the market and their customers. This can result in high unit costs, limited purchasing power and an overall inefficient supply chain for OEMs.
Many sub-contract engine building services struggle to deal with low volume orders but Ricardo specialises in niche-volume manufacturing and assembly, having supported some of the most complex low-volume assembly programmes for some of the world’s most recognisable names in high-performance propulsion. Our experts specify facilities which are tailored to accommodate small batch sizes without compromising quality, and our technicians are trained to handle bespoke builds even at low volumes.
Learn more about Ricardo's engine assembly capability
4. No compromise on quality or compliance
With rising consumer awareness and high visibility when things don’t go to plan, it is more important than ever for OEMs to ensure that the products that come off their assembly lines are compliant to standards and of a quality which aligns with the expectations of their customers. Handing over legacy engine assembly to a contract manufacturer can be a daunting prospect when brand reputation is on the line.
That is why some of the most recognisable niche volume OEMs trust Ricardo with their engine assembly programmes. We hold serval industry recognised accreditations including ISO 90001 and IATF 16949 for our engine assembly capability, ensuring that every engine that goes through our facilities meet the strictest in regulatory and performance benchmarks.
Our skilled technicians follow stringent processes aided by data-driven lineside interfaces to ensure a right-first-time approach. Supported by our in-house end-of-line testing capability, our clients can be confident that their brand reputation is in safe hands.
5. Flexibility to manage variants
To meet evolving regulations and shortening technology development cycles, OEMs must produce a wider range of engine models across narrow power bands to remain competitive in the market. This drives up tooling costs and risks complicating assembly line configurations.
Ricardo’s flexible approach to the facility specification and our world-class industrialisation expertise means that our assembly lines can be specified with variant management in mind. We have supported our clients through the introduction of many variants with minimal changes to facility loadouts. By engaging with our expert industrialisation team, we can create variant management solutions that can save our clients time, money and resource.
6. Solutions as unique as your product portfolio
Every engine comes with its own unique set of build challenges. That is especially true when it comes to engines for high performance and specialised applications. OEMs need an engine assembly outsourcing partner like Ricardo that understands that one-size-fits-all doesn’t apply in niche-volume manufacturing.
We work closely with OEMs to develop bespoke assembly solutions that reflect the unique requirements of each engine programme. From engaging with an existing supply chain to setting one up from scratch, from low-volume batch builds to establishing a dedicated semi-automated production line. Our solutions are tailored to the unique product and resourcing requirements of our clients.
7. Access to world-class propulsion system expertise
OEMs are under constant pressure to deliver high quality product in tighter timescales whilst managing a fine balance between cost and resource savings.
Ricardo brings over 100 years of end-to-end engine expertise, from design and engineering, testing, industrialisation and supply chain, and production and aftersales support. Not only can we manage the outsourcing of legacy engine builds, but we are also on hand to support with expert technical advice to develop the next generation of powertrain technology.
Which markets can benefit from Ricardo’s engine assembly support?
Any OEM which is serving a market sector characterised by niche volume supply could benefit from Ricardo’s engine assembly service is on hand to support.
We have supported clients in markets like performance automotive, motorsport, defence, marine and off-highway with their engine and propulsion system challenges.
Contact us to find out if your legacy engine programme could benefit from Ricardo’s subcontract support.
