complete knock-down

A knock-down kit (also knockdown kit, knocked-down kit, or simply knockdown or KD) is a collection of parts required to assemble a product. The parts are typically manufactured in one country or region, then exported to another country or region for final assembly.

A common form of knock-down is a complete knock-down (CKD), which is a kit of entirely unassembled parts of a product. It is also a method of supplying parts to a market, particularly in shipping to foreign nations, and serves as a way of counting or pricing. CKD is a common practice in the automotive, bus, heavy truck, and rail vehicle industries, as well as electronics, furniture and other products. Businesses sell knocked-down kits to their foreign affiliates or licensees for various reasons, including the avoidance of import taxes, to receive tax preferences for providing local manufacturing jobs, or even to be considered as a bidder at all (for example, in public transport projects with "buy national" rules).

A semi-knocked-down kit (SKD) or incompletely disassembled kit (although it has never been assembled) is a kit of the partially assembled parts of a product. Both types of KDs, complete and incomplete, are collectively referred to within the auto industry as knocked-down export (KDX), and cars assembled in the country of origin and exported whole to the destination market are known as built-up export (BUX).

Technically, the terms "knock-down", "incompletely disassembled kit" and "kits of parts" are all misnomers, because the knock-downs were never built up in the first place, and the shipments of parts are often not in the form of kits, but rather bulk-packed by type of part into shipping containers. The degree of "knock-down" depends on the desires and technical abilities of the receiving organization, or on government import regulations. Developing nations may pursue trade and economic policies that call for import substitution or local content regulations. Companies with CKD operations help the country substitute the finished products it imports with locally assembled substitutes.

Knock-down kit assembling plants are less expensive to establish and maintain, because they do not need modern robotic equipment, and the workforce is usually much less expensive in comparison to the home country. The plants may also be effective for low-volume production. The CKD concept allows firms in developing markets to gain expertise in a particular industry. At the same time, the CKD kit exporting company gains new markets that would otherwise be closed.

Automotive

In the automotive industry, the most basic form of a vehicle in KD kit lacks the wheels, internal combustion engine, transmission, and battery. They are either supplied as ''parts'' for assembly (a "complete" kit) or obtained from third parties (an "incomplete" kit); all of the interiors are already installed at the originating factory. The term SKD for semi-knocked-down refers to a kit with a complete, welded car body, usually coated or already painted. To gain some extra tax preferences, the manufacturer needs to further ''localise'' the car, i.e. increase the share of parts produced by local manufacturers, such as tires, wheels, seats, headlights, windscreens and glass, batteries, interior plastics, etc., even down to the engine and transmission. At some point, the steel body could be pressed, welded, and painted locally, which effectively makes KD assembly only a couple of steps away from full-scale production.

By the time that Henry Ford co-wrote his 1922 memoir, ''My Life and Work'', the Ford Motor Company was already shipping car parts from its Michigan plants for final assembly in the regions of the United States or foreign countries where the cars would be sold.

During World War II, a great number of US- and Canadian-built vehicles — most notably light and heavy trucks like Willys MB/Ford GPW/GPA, GMC-353/ CCKW and vehicles from the CMP family — were crated and shipped overseas in KD form, in various degrees of completeness, to Allied countries, in order to sustain their war effort. Assembly lines were preferably set up in local automotive factories where appropriate tooling and equipment could be easily found but, where needed, other types of buildings could be used, especially in on-the-field situations, and on occasion even open-air rebuilding camps were set up, managed by military personnel. Owing to male mobilization, sometimes a female workforce was employed. CKD military vehicles could be stored for shipment in one-vehicle-per-crate form (or SUP, Single Unit Pack), or as several vehicles (usually two to three) divided in two or more crates. Vehicles shipped to certain countries could be lacking some items, such as cabs, beds or tires, that were built and provided locally.

Mahindra & Mahindra Limited in India began its business in 1947 with assembling CKD Jeeps. Mahindra expanded their operations to include domestic manufacture of Jeep vehicles with a high level of local content under licence from Kaiser Jeep Corporation and later American Motors (AMC).

In the 1950s and 1960s, Lotus Cars sold its Lotus Seven car in CKD form to avoid the UK purchase tax that applied to sales of fully assembled vehicles.

By 1959, and with the introduction of the Mini, the products of BMC were still either imported or assembled from CKD kits in several international markets.

In 1961, Renault began negotiations for a first partnership agreement with AMC for assembly of Rambler automobiles in Europe. Beginning in 1962, and continuing until 1967, AMC also sold CKD kits of its passenger cars to Renault. They were assembled in Renault's factory in Haren, Belgium, and sold through its dealers in Algeria, Austria, Belgium, France, the Netherlands, and Luxembourg. The deal allowed AMC to sell its cars in new markets without having to make a m