Daniel Szirányi’s Post

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Partner, Global Strategy Group, KPMG Sweden

Although many professionals in Europe are approaching Summer vacation, the Automotive industry is continuing its development in an accelerated pace. MAJOR AUTOMOTIVE TRENDS CURRENTLY: 1 - Profitability struggle for automotive brands with weaker BRAND DISTINCTION. The most profitable (>10%) brands right now are Ferrari, Porsche, Toyota, Hyundai, Mercedes and BMW amongst others. 2 - The profitability struggle can also be explained by slower-than-expected payback for electrification investments. FLEXIBILITY in manufacturing and operations to manage both ICE and EV vehicles throughout the value chain are essential to manage the complex market situation. 3 - Stronger brand differentiation is needed due to fierce competition as hundreds of new models are put on the market. The winners are focusing on CUSTOMER CENTRIC SOLUTIONS, aiming to link the brand to excellent customer experience. 3 - Automotive companies are unfortunately not fast enough to capture new business opportunities through new technologies (AV, AI, avatars, etc), when comparing with other industries. The way forward is deeper TECHNOLOGY COLLABORATION ON EQUAL TERMS between OEMs, technology companies, TIER 1 suppliers. The buyer-supplier relationship needs to be upgraded when working within new technology solutions. 4 - the world is struggling with several unfortunate crises in parallel due to the unfavourable geopolitical situation. As a consequence, OEMs must RETHINK GLOBAL FOOTPRINT AND SUPPLY CHAIN SETUP as well as to engage in stronger CYBER SECURITY protection than previously planned. KPMG has aggressively expanded its Automotive business during the past years, strongly supported by our leadership and expertise within Corporate Strategy, Deal Advisory, Cyber security, innovation and regulatory business. Please read futher on: https://lnkd.in/dgWzynkm #Automotive #innovation #trends #geopolitics #growth #brand #customer #strategy #future #business #demand #cyber #deal

Automotive & mobility

Automotive & mobility

kpmg.com

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