In 1999, MDI imagined and created the “Dealer/Manufacturer/Partner” concept by commercializing turnkey factories to manufacture cars locally. Unlike the huge classic assembly plants (particularly pollutant), the MDI concept offers various micro production factories throughout the world.
These plants will manufacture 80% of the vehicle and will sell them in the same location.
This concept represents a drastic decrease in costs and the logistic problems associated with the conventional process (stocks and freight of finished cars to the dealers etc...) and not withstanding it beneficial impact on the environment.
In the MDI production concept, the suppliers are chosen in a way to reduce costs, logistics and freights. All the purchases are managed at the MDI central purchasing unit, to beneficiate from the advantages of bulk buying.
Taking into account the amount of MDI plants necessary to reach the number of manufactured cars in a conventional plant, the MDI industrial concept allows for a reduction in the logistic costs and a decrease in the percentage of CO2 generated in the transport of finished cars and raw materials.
A global comparison of the conventional production system with the MDI concept, based on the same amount of vehicles manufactured annually, provides the following when the MDI’s concept is used:
- 1/3 of the land surface is necessary.
- 1/4 of a conventional assembly factory.
- 1/5 of the total investment.
- 30% more employees necessary.
The principal advantages of MDI’s production method are:
Ecologic
- Better repartition of the energy necessary for production.
- No pollution caused by the transport of finished vehicles.
Economic and social
- Currency stays in the country, local employment;
- no population transfer from countryside to cities.
- Transfer of knowledge and knowhow.
Quality
- A car is produced every 30 Minutes.
- Use of techniques that are not compatible with conventional production methods.
Marketing
- Purchase of locally manufactured cars (Government...)
- Decrease in import taxes (which can be very high in some countries)
COSTS
- Small facilities, easy to manage.
- Logistics drastically diminished.
- No stocks, spare parts are produced ‘after time’
The MDI concept diminishes production costs.
The MDI’s production concept is applicable in all countries except in India where TATA MOTORS is the exclusive licensee.
Tata Motors, in keeping with its role as the leading company in India for automotive R&D, has signed an agreement with MDI for the application of MDI’s revolutionary compressed air engine. The agreement between Tata Motors and MDI envisages Tata’s supporting further development and refinement of the technology.
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