Benefits of complexity reduction in the automotive industry: a Stellantis case

In the dynamic landscape of recent decades, the automotive industry has encountered numerous global changes and market fluctuations. The effective management of product variety and its associated complexity is crucial for the success of automotive firms. The diversity in product offerings and services plays a pivotal role in expanding and sustaining market presence while driving revenue and profitability. However, this diversity also introduces complexity across product portfolios, architectural structures, and value chain operations. Consequently, organizations face the challenge of finding a delicate balance between the advantages and challenges posed by the need to reduce complexity. This thesis aims to investigate and implement the benefits of complexity reduction, with a focus on a new product project developed by Alfa Romeo, the renowned Italian luxury car manufacturer, which has been a subsidiary of Stellantis since 2021. The research delves into the intricacies of complexity reduction within Stellantis, the automotive giant, and the organizational and production advantages it brings. This exploration primarily centers on two critical domains: industrial complexity and commercial complexity. The work presented here is the culmination of extensive research conducted within the company, involving data analysis and the development of tools to be applied to the Alfa Romeo project.