French car parts maker Forvia plans to cut R&D costs in half through AI

French car parts maker Forvia is on a mission to cut its Research and Development (R&D) costs in half by 2028. How do they plan to achieve this ambitious goal? The answer lies in generative artificial intelligence (AI). Forvia aims to leverage AI technology to keep up with the challenges posed by electrification and the fierce competition from Asian companies in the automotive industry.

As the world’s 7th largest car equipment supplier, Forvia was born from the acquisition of Germany’s Hella by the French group Faurecia. Currently, the company has a global workforce of 157,000 employees, including over 15,000 engineers working in 76 R&D centers. However, Forvia’s CEO Patrick Koller acknowledges that reducing R&D costs by 50% is a daunting task. He explains, “First, it is huge and will require a lot of restructuring, but above all, if you don’t do it, within three to five years, you are out of the game.”

While Koller did not specifically mention job cuts as part of the transformation, it is clear that significant changes will be required. Training and recruitment will play a crucial role in adapting to the new AI-driven R&D landscape. Forvia also has plans to establish five fully automated plants within the next two years, in addition to the current one in Spain. Koller refers to these plants as “dark plants,” drawing inspiration from the concept of “dark stores” – city-center warehouses without sales staff that focus on home delivery.

In these “dark plants,” human presence will be maintained for management, supervision, and maintenance functions, while production will be fully automated. This strategy aligns with Forvia’s goal of staying ahead in the industry by embracing the potential of AI technology. The company currently has 291 industrial sites spread across 40 countries.

Forvia’s plan to utilize generative AI and automate production processes is a significant step towards ensuring its competitiveness in the rapidly evolving automotive landscape. By harnessing the power of AI, the company aims to not only reduce costs but also enhance efficiency and innovation. With their sights set on establishing themselves as a leader in the industry, Forvia is making bold moves to secure their position in the game.