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This week we are joined by K. Venkatesh Prasad, who discusses Stellantis clashing with suppliers, the UAW Volkswagen vote, and Amazon’s private charging. "The workforce landscape is evolving, marked by big gaps identified by the Center for Automotive Research in the electric industry education and training needs. It is a call for private investors and economic developers to redesign the business operating environment. It is time to rethink the changes that will be needed to ensure that the tango of state incentives and private investments will work to retain and attract businesses, and above all, be in unison to train and prepare our workforce for a better tomorrow" Read the full Hot Topics article: https://lnkd.in/dWf72uG5

It sure isn’t easy for Automotive Manufacturers right now ! Even the Brands that won’t be fined are having to make savings…… ------------------------------------------------------------------------- • Helping you achieve your dealership exit strategy goals. • Using my vast experience and extensive industry network to get the best price for your business, quickly, efficiently and confidentially. • Let’s talk today about maximising your property portfolio and realising your dreams. We can make it happen. DM me and let’s begin the journey together. #automotivedealerships #cardealerships #motorcycledealerships #roadsideproperty #alternativeuse

Disruptive trends are changing the automotive landscape. To thrive and remain in business, suppliers need to decide on which part of their business they want to expand, defend, and pivot. @DeloitteInsight rt #Automotive

𝗧𝗵𝗲 𝗔𝘂𝘁𝗼𝗺𝗼𝘁𝗶𝘃𝗲 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗶𝗻 𝟮𝟬𝟯𝟬: 𝗘𝘅𝗽𝗹𝗼𝗿𝗶𝗻𝗴 𝗡𝗲𝘄 𝗛𝗼𝗿𝗶𝘇𝗼𝗻𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗚𝗿𝗼𝘄𝘁𝗵 𝗮𝗻𝗱 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 The automotive industry, a sector in constant flux, is possibly on the cusp of one of its most significant transformations. According to a recent LinkedIn survey by sensified, 45% of industry experts view the 'Growth and Integration' scenario as the future by 2030. But what does this mean for the industry, its players, and the consumers? At the heart of this scenario are the OEMs, aspiring to dominate through standardization and integration of the value chain. However, this raises crucial questions: 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝘃𝘀. 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝗶𝘇𝗮𝘁𝗶𝗼𝗻: Standardization promises efficiency, but could it also stifle creative diversity in the automotive industry? How do we balance the need for uniform standards with the indispensable spark of innovation? 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗩𝗮𝗹𝘂𝗲 𝗖𝗵𝗮𝗶𝗻: The integration of technologies and processes could lead to unprecedented efficiency gains. But how does this impact the relationships between OEMs and suppliers? Does it foster a partnership or create a dependency? 𝗧𝗵𝗲 𝗥𝗼𝗹𝗲 𝗼𝗳 𝗚𝗹𝗼𝗯𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀: With increasing standardization, automakers could better focus on global expansion. But does this also lead to a global homogenization of vehicle models? How can we ensure that local specifics and needs continue to be addressed? By 2030, we might observe the following developments: 𝗧𝗵𝗲 𝗜𝗻𝗶𝘁𝗶𝗮𝗹 𝗣𝗵𝗮𝘀𝗲 (𝟮𝟬𝟮𝟰-𝟮𝟬𝟮𝟲): Focus on research and development of integrated systems. This could be a golden age for innovation, but also a challenge for smaller players who must adapt. 𝗧𝗵𝗲 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗣𝗵𝗮𝘀𝗲 (𝟮𝟬𝟮𝟳-𝟮𝟬𝟮𝟵): Implementation and standardization of the developed technologies. This could shift power dynamics, and it will be interesting to see how this impacts competition and product diversity. 𝗧𝗵𝗲 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗺𝗲𝗻𝘁 𝗣𝗵𝗮𝘀𝗲 (𝟮𝟬𝟯𝟬): A new era where the automotive industry might be characterized by unified, efficient processes and a strong global presence. But what does this mean for customer choice and individual brand identity? At sensified, we believe that discussing and critically questioning these developments is essential to secure a diverse and dynamic future for the automotive industry. We invite our partners and the broader public to join this important debate. #sensified #AutomotiveFuture #InnovationVsStandardization #GlobalMarkets

The automotive industry's pursuit of efficiency over the last 75 years has been a fascinating journey! Cost-conscious development, quality control, and innovative pricing strategies have shaped the landscape. Major shifts have swept across competitors and continents, reflecting the impact of world events. #AutomotiveEvolution #automotive #AutoIndustryInsights #innovation

Disruptive trends are changing the automotive landscape. To thrive and remain in business, suppliers need to decide on which part of their business they want to expand, defend, and pivot. @DeloitteInsight rt #Automotive

Strategic Insights for Navigating Mercedes-Benz AG The financial outcomes for 2023 shows a commendable revenue increase to €153.2 billion. I will delve into the six pivotal challenges Mercedes faces: 1. The Chinese Conundrum: China, once a stronghold for Mercedes, presents a nuanced challenge with a 2% dip in sales, signaling the competitive pressure from local EV manufacturers. Mercedes is needing to reconcile its luxury pedigree with the booming demand for affordable electric vehicles. Strategic diversification and localized innovation could serve as a blueprint for regaining momentum in this critical market. 2. Supply Chain Resilience: The recent bottleneck in the supply of 48-volt batteries underscores the vulnerability of global supply chains. Developing a more agile and diversified supply chain strategy, perhaps through strategic partnerships or investment in in-house capabilities, will be vital for mitigating similar risks in the future. 3. Upholding Quality Excellence: The mass recall due to faulty fuses has spotlighted the importance of rigorous quality control for maintaining Mercedes' sterling reputation. Investing in advanced diagnostic technologies and enhancing supplier quality assurance processes can help safeguard against such pitfalls, ensuring that "Made in Germany" continues to stand for unmatched reliability. 4. Nurturing Talent and Workforce Stability: The promise of substantial bonuses and job security underscores Mercedes' commitment to its workforce. However, the potential offshoring of jobs post-2030 raises concerns about long-term employment stability. 5. Retail Network Transformation: The decision to divest from underperforming dealerships, affecting 8,000 employees, marks a significant shift in Mercedes' retail strategy. This move necessitates a delicate balance between operational efficiency and maintaining brand loyalty. Developing a comprehensive transition plan that includes re-skilling and potential redeployment options could minimize disruption and uphold Mercedes' esteemed brand ethos. 6. Software as the New Frontier: The anticipation surrounding the MB.OS operating system highlights the increasing role of software in differentiating automotive offerings. Mercedes' venture into proprietary software development is ambitious and fraught with high expectations. Prioritizing user experience and seamless integration with existing and future technologies will be key to realizing the potential of MB.OS as a cornerstone of Mercedes' innovation strategy. In addressing these challenges, Mercedes-Benz stands at the precipice of transformative change. From crafting nuanced market entry strategies in China, retail network optimisation, I am offering Mercedes-Benz in steering through these complex challenges towards a future marked by sustainable growth and innovation. #MercedesBenz #StrategicMarketing #AutomotiveInnovation #SupplyChainManagement #QualityControl #RetailStrategy #SoftwareInnovation #MBOS

In the global automotive arena, the distinct philosophies of Japanese and German manufacturers illustrate not just varied approaches to car making but also reflect broader business and strategic paradigms. The Japanese focus on efficiency, reliability, and minimal maintenance, as seen in brands like Toyota and Honda, has made them leaders in creating vehicles that promise and deliver long-term dependability with less frequent need for upkeep. This strategy has not only won them a significant market share worldwide but also a reputation for producing some of the most user-friendly and durable vehicles. Conversely, German manufacturers such as BMW, Mercedes-Benz, and Audi, with their unwavering commitment to engineering excellence, performance, and innovation, cater to a different market segment that values luxury, cutting-edge technology, and superior driving experiences, supported by rigorous maintenance schedules to ensure longevity and reliability. This contrast in automotive philosophy offers valuable insights for businesses strategizing to carve out their niche. The critical decision lies in whether to prioritize operational efficiency and reliability, mirroring the Japanese approach, or to focus on innovation and premium positioning, drawing from the German model. Identifying your business’s core competencies is essential—this could involve analyzing customer feedback, evaluating market trends, and reviewing internal performance metrics to pinpoint where your strengths lie. For example, a software development firm that leans towards the German philosophy might invest heavily in R&D to deliver innovative and high-quality products. On the other hand, a consumer goods company might adopt the Japanese approach, focusing on efficient production processes and reliable products to ensure customer satisfaction. Yet, striving to blend these philosophies without a clear focus can lead to strategic misalignment. However, acknowledging the potential for integrating elements from both, provided there’s a dominant strategy, offers a nuanced route to innovation. This approach demands clarity in vision and execution, ensuring any adopted elements serve to enhance the overarching strategic goal. In conclusion, crafting a successful business strategy, much like engineering a car, requires a clear understanding of your strengths and the needs of your target market. By drawing inspiration from the automotive giants of Japan and Germany, businesses can develop a focused strategy that aligns with their core competencies and market position. Whether adopting a single philosophy or integrating aspects of both, the key lies in maintaining a coherent strategic direction, ensuring your business navigates towards success in its chosen niche.

Looking for ways to speed up your product development? Reducing the development process cycle time and cost requires a comprehensive transformation of automotive product development processes, teams, and culture. Explore how traditional automakers can achieve this by adopting the practices that challenger OEMs are using: https://bit.ly/PDPAcc Faster timer-to-marker is huge advantage in the automotive industry: - Time advantage: Accelerated time-to-market; shortening of whole platform development by 20 months - First-mover advantage: Allows for higher pricing for new technologies; possible price increase of 5% for premium segments - Platform costs: 50% cost advantage in platform costs through time savings and reduced physical validation - Innovation flexibility and development: New technologies can be brought into the vehicle more quickly and with greater flexibility Authors: Dr. Christine Sachseneder, Marcus M. Weber, Dr. Felix Spangenberg, Falk-Sebastian Doerfler, Sven Grollmuss, Florian Feldmann, Marcel E. Timuçin

#Tesla's ascent in the automotive world is a story of innovation, not only because of technology and engineering but also because of a shrewd #businessstrategy. Here's why #verticalintegration is the path to strategic advantage.