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Management Team

Partner
Christian Koehler
Automotive companies can double profit margins if they reinvent their approach and offer new products and services

Has the automotive industry ever been so dynamic?

Automotive companies face an unprecedented set of challenges on all levels: technological challenges – such as autonomous, connected, electrified and shared vehicles with drastically reduced emissions – amplify globalisation and new transport paradigms. I believe we have never seen a more dynamic industry.

What should automotive companies do?

Automotive companies should embrace change by focusing on three areas: a new approach to car making, new cars for new requirements and new mobility services. Tomorrow’s leaders – whether they are established players or start-ups – need to drive this change to make above-average profit at a reduced risk.

What are the benefits?

We estimate that mastering value creation in these three areas could double EBIT margins. This will require bold decision making, quick execution and high perseverance. However, the profit potential is large enough to justify the effort. This is not the time to be cautious.

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