Under CMF, the major categories of vehicles, by size, are developed according to common engineering of front underbody, engine, cockpit, rear underbody, and electrical/electronic architecture. For example: The wand that controls headlamps and highbeams will be the same in all future Nissan and Renault subcompacts, allowing both companies to benefit from large-scale purchases from fewer suppliers.
The supply chain can create value by eking out cost savings from scale economies in some components. To do so, would-be rivals choose to cooperate so that their suppliers can enjoy scale economies. Thus, the vertical arrangement benefits from the horizontal arrangement.