Building blocks

Engineering a good engine is half the battle; getting it through the assembly process without introducing flaws is the final victory.

With gasoline prices as volatile as they've ever been, it is difficult for automakers to judge future demand for the various models in their product range. An appropriate amount of manufacturing flexibility, not just for vehicle models but also for engine models, can go a long way in these uncertain times.

That is particularly so as automakers the world over, especially those in the U.S., are trying to downsize their engines. A gradual move in the U.S. away from eight-cylinders to six-cylinders and four-cylinders is already under way. “The gas spike this summer drove more of that thinking,” said John Lucci, a partner in the Global Automotive Practice of Oliver Wyman Consulting. “Now, as gas prices have gone to the lowest in years, all bets are off regarding the speed at which these changes will continue.”