* Improved Reliability and Efficiency: Putting the regulator inside the alternator simplifies the system. External regulators were prone to wiring issues, loose connections, and heat damage. Internal regulation provides better protection from environmental factors and makes the entire system more compact and less susceptible to failure.
* Simplified Wiring: An internal regulator reduces the number of wires needed, simplifying the installation and reducing the potential for wiring faults. This also translates to a cleaner engine bay.
* Better Regulation: Integrated regulators can provide more precise voltage control, leading to better performance for the electrical system and longer battery life. They respond more quickly to changes in load.
* Cost Savings (Eventually): While the initial design and manufacturing might have been slightly more complex, the long-term benefits of reduced failure rates and simpler wiring eventually led to cost savings in manufacturing, warranty repairs, and reduced roadside assistance calls.
In short, integrating the voltage regulator into the alternator was a significant design improvement that boosted reliability, efficiency, and simplified the entire electrical system of the vehicle. The older external regulator design was ultimately superseded for all these reasons.