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subsystems. In fact, in our opinion, the design of the SC links that precede the final assembly should be considered as the rational differentiating characteristic of the OEMs from an operational point of view (agility, innovation, quality and reliability). Styling, an distribution channel design and management (the postOEM assembly operations)are the emotional differentiating characteristics from a brand perspective. Classifying ponents based on their clock speed The barriers to clock speed, the dampeners, are the plexity of the product architecture and the organizational inertia of the OEMs. The upstream rates of technological innovation, which are dictated by the customer demands and the industry petitiveness, are accelerating as they cascade down the supply chain. In order to capitalize on this downstream acceleration, the OEMs have to modularize their products’ architecture. As mentioned, there are different clock speeds for different auto subsystems and ponents. To illustrate, we can consider 10 of a vehicle’s most representative ponents. The sheet metal and the hardware (screws, bolts, nuts, rivets, etc.) have the lowest clock speed because these ponents’ rate of change and innovation is relatively low. Sheet metal and automotive hardware is produced in largescale manufacturing facilities with very little flexibility. The engineering efforts are focused on efficiency and optimization of processes and not on new product design. At the concept design stage all the product and process characteristics are well known and can be easily planned for. To a lesser extent, the same is valid for glass and other automotive construction materials such as steel, aluminium, rubber and plastic The nonfunctional structural ponents like the frames, subframes, rear axels, suspension ponents and the seats are located in the middle of the scale. These ponents are fabricated in large batches and the engineering efforts are focused both on improving efficiency as well as product innovation and quality. Some product attributes need to be designed and developed after the concept design phase but in general the approach is conservative and incremental to current designs and processes. Exterior and interior ornamentation ponents and colors are closely related to the latest design trends and, as a result, they are associated with a higher clockspeed than the other ponents. During the concept phase the design fashion trends are still evolving but the core product attributes (plastic moulds, pigments, etc.) are known, as are the basic manufacturing processes. The batches are smaller than the ones used for the previous ponents in order to ensure flexibility. The electronic ponents and software have the highest clockspeed among the automotive subsystems. During the concept design phase only the performance specifications can be determined. Even these specifications are subject to change pending technological advancement during the design phase as well as the social preferences of the customers. In the automotive industry the highest financial burden is created by the huge time gap between the capital investment and the moment of the first sale. This creates an acute need for accurate sales volumes predictions and, even more importantly ,sales option mix. The base models volumes (with lower sticker prices and profitabili