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15.09.2014

Automotive Suppliers: How to Turn Future Uncertainties into Growth

Increasingly ambitious CO2 reduction targets, electrification, safety, connected vehicle trends, etc. fundamentally change the automotive industry. This affects automotive OEMs, but it also – and probably even more – affects automotive suppliers.

There are two questions the CEO of an automotive supplier should continuously ask himself/herself:

  • “Will our current business survive the next 15 to 20 years?” As an example, let’s assume your company develops and produces components for internal combustion engines: What will happen to your business if hybridization, electrification or even fuel cell technologies continuously increase market share and have consumers turn away from traditional powertrains?
  • “Don’t we miss out on growth opportunities?” New vehicle technologies partly require new technical capabilities which might be within your company but not necessarily within competing suppliers. A structured innovation process helps to identify and unveil those technologies to create new business opportunities – especially as automotive OEMs currently face fundamental technological challenges (e.g. emission legislation).

We believe that to master these kinds of uncertainties, a permanent and rigorous innovation process is needed. Our study describes the success factors for automotive suppliers in detail.

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