On January 28, PTC announced that Hyundai Motor Company and Kia Motors Corporation (HKMC), the fifth-largest and fastest-growing Korean automobile manufacturer by market share, selected PTC's Windchill as its enterprise PLM software. Windchill will become the company’s standard PLM environment, replacing other PLM software, but will continue to support the existing heterogeneous CAD environment, primarily Dassault's CATIA for body and chassis design and PTC's Creo for powertrain designs. HKMC has alre
We are not surprised by this trend, which we expect to continue. The growing complexity and sophistication of automotive design and engineering, coupled with global supply chain and manufacturing operations are taxing auto manufacturers and require a new level of capabilities to ensure quality while reducing costs and time-to-market. Our market research clearly indicates that OEMs are taking proactive steps to improve the efficacy of decision-making throughout the product lifecycle.
OEMs are realizing that the traditional heterogeneous and fragmented product lifecycle management environment, even when compromised of excellent tools, is unable to provide the level of visibility, manageability, and fidelity of decision-making required, and are taking steps to migrate to a design and manufacturing environment capable of supporting a global platform strategy. This environment must be standard-based and open in order to facilitate a single source of all data for design, manufacturing and supply chain processes across vehicle design and manufacturing programs.
In all of these announcements, the automakers stressed that their decision, while highly technical in nature, was equally based on forming a long-term strategic partnership with the software vendor of choice. Indeed, it took both HKMC and Aston Martin about two years to complete the evaluation and selection process.
As we discussed in our recent Top 10 PLM predictions for 2011 webcast, we expect this trend to not only continue but to accelerate. We believe that additional OEMs will seek to forge stronger relationships with a smaller number of PLM vendors based on their ability to articulate a long-term vision combined with deep industry knowledge and a credible product roadmap. These relationships will help OEMs execute a rigorous global platform strategy and, at the same time, help PLM vendors focus on addressing the industry's critical needs.
What's your view on the changing landscape and vendors-manufacturers relationships?