Domestic automakers should cultivate themselves into innovators

MAHLE Powertrain Ltd. has been established following the acquisition of Cosworth Technology by MAHLE Group in 2005 and provides Integrated Powertrain Solutions (IPS) from concept to manufacture. In this interview, Paul Ward- manager of Mahle Powertrain Shanghai Office talked about his business experience in China; he suggested that Chinese automakers need to develop innovators.

Gasgoo: Mahle Powertrain has demonstrated unique system competence in the area of combustion engines and engine peripherals" Why its engineering service is reliable and professional?

Paul Ward: MAHLE Powertrain enjoy

-a proven track-record for delivering programs on time and to a very high standard;
-many satisfied customers;
-wide experience & understanding in worldwide automotive market;
-experts with advanced technology;
-passion for engineering & problem solving;
-support of owner, MAHLE, a global Tier 1 supplier who share the same vision.

Gasgoo: Can you tell Mahle Powertrain's business experience in China, for example how you help the Chinese customers and what problems you've met?

Paul Ward: Most of our projects' customers are major OEM's, so confidentiality is very important. This in itself is a challenge-how to win new business without giving competitor secrets.

In China, we have many discussions with global JV's & domestic automakers. China is a cost-sensitive market, and we are successful at offering our customers a cost effective service. The key requirements in China are flexibility, core objective explanation, and patience.

Gasgoo: Mahle Powertrain leverages its expertise worldwide, and has involved itself in developing more efficient and cleaner vehicles. What have you done and will do in China in this area?

Paul Ward: MAHLE Powertrain is developing the MAHLE Downsize engine. This project is a technology demonstrator, to show a small downsized engine [1.2L] can provide similar performance of an engine with double the capacity, and also give 20% fuel saving. Chinese engineers are very interested in the technologies incorporated in this engine. For Auto show 2009, which will open in April in Shanghai, MAHLE will display the downsize engine and hold technical seminars.

We are experts in emission control for gasoline engines, and all current & future programs in China focus on satisfying clean emission requirements.

The MAHLE Powertrain downsize engine already achieves high levels of efficiency. It offers many advantages, including low weight, smaller size and optimized combustion process. The substantial improvement in fuel economy will pass these benefits on to the vehicle owner. Now that these achievements have been realized, the next challenge is to work together with a partner to reduce the manufacturing costs.

Gasgoo: Chinese government and manufacturer are making efforts to develop hybrid and electric vehicles, while some people are worried about this, suggesting them improve energy efficiency of conventional engines. What's your comment on that?

Paul Ward: The internal combustion engine has undergone continuous development for over 120 years. Engineers will continue to improve their understanding of all the systems, and their physical and chemical interactions. A hybrid is a combination of an IC Engine and Electric Vehicle [battery power] working together. My Toyota Prius uses the IC engine more than 95% of the time, and the battery less than 5%, so I see the improvements to the IC engine technology as offering the major influence to improvements to fuel economy.

MAHLE will focus on improved combustion, turbocharging, and friction reduction.  This requires intelligent research facilitated by large budgets. MAHLE also have their own single-cylinder research engine as a tool for quickly testing new ideas.

Gasgoo: With so many foreign engineering services available, how should they choose the most suitable one? And what the local OEMs and suppliers should learn from these "helpers"?

Paul Ward: All our discussions with Chinese auto companies voice a strong interest in learning through cooperation. They recognise that their engineers need more experience, and see good value in working together in a joint project team. It is common for customers to co-locate their engineers in the UK as a hands-on training opportunity. We welcome this. At the end of the project, the engineers return to China and bring back the skills and techniques they have learnt. Also their language skills and communication styles become more aligned to western culture.

In order to become a leader, rather than a follower, first you need to develop innovators. These people will take China forward. The current education system restricts this. Working with foreign service suppliers will teach them new ways to think.

One of my common thoughts in China is; Instead of asking 'Can we afford to do this?', better to ask 'Can we afford not to do this?'