As this year’s survey demonstrates, the world inhabited by future auto customers is changing fast. It is no surprise, then, that relationships with brands and mobility providers are up for grabs, with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle.
Given the potential value streams from connectivity and associated services, it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products. But – and this is the big “but” – will these new offerings come from existing, major OEMs or from some other source? And, will key players from converging industries want to cooperate, compete or even position themselves at the top of the new value chain? With these challenges looming, OEMs need to ask themselves some searching questions: How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of ‘digital natives’? How do I learn to be a high value, branded services business, while making the most of my strong product and engineering heritage?
Should I build, buy or partner to achieve this goal? How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years? Who do I work with to develop these technologies and how do I reconfigure my product development capabilities? How do I create the investment capacity to do all of this, while continuing to develop and deliver today’s products and maintain returns to shareholders? What level of resilience to market, event and volatility risk should I maintain during this period? Member firms are seeing our clients across the automotive value chain starting to address these questions, and the next few years are going to be fascinating.
- Roger Bayly - Partner, KPMG in the UK