Distribution wars are already taking place today on many stages – not just within the classical car industry, but also with external entities. Amazon has joined the race for online vehicle distribution while Apple and Google are in the starting blocks for using cars as a networked end device. This is how the established manufacturers (where quality and safety is the priority) come into conflict with startups from Silicon Valley (agile with a can-do attitude). German automotive executives are striving to climb the digital learning curve, which is imperative in the fight to unlock new fields of activity and, above all, in defending their established business models. The car is no longer the main focus, but rather a positive, efficient and ecological mobility experience. If the established manufacturers want to keep hold of their leading positions in this changing industry structure, they will have to digitalize their structures and processes, conclude partnership contracts with digital companies, become more agile and understand their clients better. They will have to undergo fundamental change in order to be successful in this new landscape. Up until now, many were lacking the digital expertise to be able to compete with the new, dynamic challengers, who define software as the new petrol.
Dr. Juergen Reiner, Partner of the global Automotive und Manufacturing Practice, Oliver Wyman, Munich
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