This Week in Consulting

Wednesday, November 6th 2019

The Digital Future of Automotive


Both consumers and automotive executives put less emphasis on the brand in an autonomous, mobility-as-a-service paradigm. Brands need to prioritize in-vehicle digital experiences over driving features to differentiate.”

Radical change is looming for the global automotive industry. What actions can the industry take to accommodate this change?

This Week’s Must Read  is an insight piece from IBM where the authors explore how can automotive organizations evolve to operate and innovate in a digital and data environment?

Read on to Find out More: “Automotive 2030 | Daniel Knoedler,Dirk Wollschlaeger, and Ben Stanley, IBM.

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How will the automotive industry change in the future and how does that impact Europe?​


  • The race for cybersecurity: Protecting the connected car in the era of new regulation: “Cybersecurity has risen in importance as the automotive industry undergoes a transformation driven by new personal-mobility concepts, autonomous driving, vehicle electrification, and car connectivity. In fact, it has become a core consideration, given the digitization of in-car systems, the propagation of software, and the creation of new, fully digital mobility services.” As digital transformation exposes new cybersecurity threats , the authors explains what OEMs can do to protect their cars and customers from hackers. | Johannes Deichmann, Benjamin Klein, Gundbert Scherf, and Rupert Stuetzle, McKinsey
  • ‘The pain is just beginning’: After 38,000 layoffs, Wall Street wakes up to ‘peak car’– “For the auto business, “the pain is just beginning,” according to the Nomura analyst Masataka Kunugimoto and his team. “We now expect global auto demand to be down 3%,” year on year, in 2019, he told clients recently.” The world may have passed “peak car” and people in the future will need fewer personal vehicles. It’s maybe why the industry is staring down the barrel of a significant downturn. | Jim Edwards, Business Insider
  • The automotive industry has not reached ‘peak car’ as some analysts suggest: “When all around you there are people saying the car business is being disrupted, that electric vehicles are coming to eat the gas-powered automobiles’ lunch, and that Uber and Lyft will destroy traditional car ownership, it can be easy to overlook the basic fact that US auto sales are strong, have been strong, and should be relatively strong in the future.” The article presents an interesting counterpoint to the previous article from Business Insider. Has the automotive industry really reached a car peak? | Matthew DeBord, Business Insider
  • What Does the Future Hold for Self-Driving Cars? “Self-driving cars are poised to revolutionize the transportation industry. There have been many significant shifts in the auto industry since the beginning of commercial auto production roughly eight decades ago, but the basic formula of a human operator guiding a vehicle using a steering wheel and pedals has held pretty steady across that time span. “ Here the author presents the driverless-vehicle revolution from an investor perspective. | CKeith Noonan, The Motley Fool



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