Case Study · Special Machinery

EV Component Production Line in Michigan.

How a Tier-1 automotive supplier turned a one-page product idea into a comparable, financeable RFQ for a USD 6.5M special-machinery line — and why the cheapest offer was not the cheapest project. Anonymised for confidentiality.

Anonymised, buyer-first case study — no supplier is named, ranked or endorsed. Editorial policy.
Sector
EV drivetrain component machining & assembly
Geography
Michigan (buyer) · US, German and Italian machine builders
Budget band
USD 6.5M CAPEX (machinery, controls, installation)
Timeline
19 weeks RFQ-to-contract · 14 months to FAT
Delivery model
Special machinery turnkey line + owner-managed installation
Financing
Commercial equipment facility + vendor-stage payments

Client profile & engagement record

Client
Tier-1 automotive components supplier, privately held, southeast Michigan
Scale at engagement
Two plants, ~420 staff, supplying three OEM programmes
Trigger
Awarded a new EV drivetrain component programme requiring a dedicated machining and assembly line
Starting point
A one-page concept with a target cycle time — no layout, no controls standard, no FAT criteria
Global B2B Group role
Structured the requirement, issued a comparable RFQ to four machine builders and normalised the proposals. Supplier-neutral throughout; the buyer's committee made the award.

Decision makers involved

  • VP Operations — line performance and launch timing
  • Plant Engineering Manager — controls standard and site utilities
  • CFO — equipment facility and payment milestones
  • Quality Director — FAT/SAT criteria and PPAP alignment

Engagement timeline

Structuring
Weeks 1–4 — cycle time, OEE assumptions, controls standard and FAT criteria fixed in writing
RFQ issued
Week 5 — identical technical and commercial schedule to four pre-qualified builders
Clarification
Week 8 — single shared clarification round; all answers to all bidders
Award
Week 19 — contract signed after TCO normalisation and reference visits
FAT
Month 14 — factory acceptance passed on first attempt against the written criteria

Engagement record verified against the RFQ file, the bid-normalisation workbook and the FAT certificate, and approved by the project owner before publication. Company name, site location and individual names are withheld under a confidentiality agreement; figures are rounded and published with the project owner's approval. Global B2B Group is supplier-neutral and does not manufacture, install, certify or lend.

Challenge

The buyer held a programme award with a fixed launch date, but only a one-page concept for the line itself. An early informal budgetary quote from a familiar integrator produced a figure the board could not defend, because it mixed machinery, controls integration and installation in one unstated scope. The risk was familiar: sign a number that moves later, on a launch date that cannot.

Target cycle time
38 s
CAPEX band
USD 6.5M
RFQ-to-contract
19 weeks
Builders quoted
4

Requirement structuring

Before any manufacturer was approached, the requirement was rebuilt as a written specification: cycle time and OEE assumptions, part family and changeover rules, controls standard (PLC platform, safety category, data handoff to plant MES), utilities, layout envelope and the FAT criteria the line would be accepted against. Eleven specification gaps were identified and closed in the first four weeks.

  • Cycle time defined per part variant, not as a single headline figure
  • Controls standard fixed — preventing each builder from quoting its own ecosystem
  • FAT/SAT criteria written before the RFQ, so acceptance was contractual, not negotiated later
  • Scope boundaries between the line builder, controls integrator and plant fixed in a responsibility matrix

Comparable RFQ and normalisation

Four machine builders — two US, one German, one Italian — received the identical technical and commercial schedule. The four proposals returned prices spanning a 41% range, but the headline prices answered the wrong question. Normalising all four to one scope basis (including controls integration, spares, commissioning support and FAT) re-ranked the field: the lowest headline price became third on evaluated total cost of ownership, and the eventual winner was the second-lowest headline.

  • 41% headline price range across four builders
  • Normalisation moved the lowest headline offer to third on TCO
  • Lead times scored as a criterion — 11 months vs 16 months mattered against a fixed launch date
  • Reference installations visited before award, not after

Financing coordination

In parallel with the technical comparison, the project file was prepared in lender-readable form — equipment schedule, milestone payment plan, supplier financials and the OEM programme award letter. A US commercial lender approved a USD 4.8M equipment term facility against the machinery, with vendor-stage payments structured around design review, build completion, FAT and installation. Global B2B Group is not a lender, broker or financial adviser; approval, pricing and terms rested solely with the licensed institution.

Controlled introductions

At no point was the buyer automatically connected to a manufacturer. Candidate builders were identified through technology-supported research, every candidate passed human review and fit validation against the written specification, and each commercial introduction was approved and coordinated by David and the authorised Global B2B Group team. Suppliers could not pay to be shortlisted, ranked or recommended.

Lessons learned

  • The four structuring weeks saved more money than the negotiation did — comparable bids are the leverage
  • Fix the controls standard in the RFQ or you will buy the same integration twice
  • Write FAT criteria before quotations, not after; the winning line passed FAT on the first attempt
  • Score lead time against the programme launch date, in writing, before price discussions begin

Planning a similar project?

Global B2B Group can help you prepare a professional procurement strategy, identify qualified international suppliers, compare solutions objectively and explore suitable financing opportunities.

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