Automotive product creation and e-mobility

Over the next 15 years, the automotive industry will undergo the greatest transformation in its history. E-mobility technologies are reshaping the automotive value chain and business models. In addition, complexity is increasing, putting tremendous pressure on engineering organizations to become more effective, more efficient and faster. They must also become more innovative to tackle a broader range of technologies.

We support our clients in defining pragmatic strategies that allow them to master these challenges and align product creation and e-mobility with market, regulatory and technology trends.

Today, the automotive industry is facing challenges that will not only transform current organizations and processes, but also reshape the value chain and business models in this industry.

E-mobility is emerging as the answer to ambitious new market and regulatory requirements; in other words, more environmentally friendly and efficient vehicles. The challenges facing OEMs are found in both upstream and downstream stages of the value chain. Upstream topics include the definition of flexible, modular yet cost-effective technologies to meet strict emissions targets, partnership strategies, make-or-buy strategies, and securing the supplier base for new xEV technologies. Battery systems in particular, a market worth over EUR 50 billion in 2020, require strategies to secure a long-term supplier base. State-of-the-art technology will be essential in the race for leading e-mobility technologies.

The powertrain electrification trend will pick up speed – EV/PHEV technologies will achieve over 10% market share in triad markets and China by 2020

Downstream challenges include commercialization strategies for these new products/services as well as opportunities/threats of new business models. Selling cars is not enough anymore. New competitors such as energy companies, operators of recharging infrastructure and mobility providers are rapidly changing the rules for commercializing mobility and thereby reshaping the value chain. E-mobility is also triggering and accelerating the development and implementation of further key technologies, including lightweight materials and connectivity. The right combination of these technologies will allow OEMs to provide customers with a rewarding and seamless mobility experience.

The automotive industry also needs to respond to four other key challenges. First, globalization will pick up speed. Sales and production will shift further to BRIC markets, but triad markets will still account for over 40% of global sales and production. Second, low-budget cars are becoming increasingly important – not only in emerging markets, but also in the triad markets. Third, the industry will face a shortage of qualified employees, especially in the triad markets. Finally, these trends will not only increase the complexity and amount of engineering work, but also call for "delivery at same cost". Engineering organizations therefore need to find pragmatic transformation strategies to master these challenges.

To cope with these challenges, the engineering organization needs to transform from worldwide presence to worldwide integration. Automotive engineering must become "glocal," adapting a global framework to local particularities.

Our goal: To work together with our clients in defining and implementing strategies to master these challenges

With over 120 consultants located at 23 offices worldwide, we support our clients in mastering these unprecedented global challenges. Our global network enables us to leverage our in-depth knowledge of local markets to successfully address global topics.

In terms of e-mobility, our team has developed strong expertise and led over 50 projects covering the entire value chain. Leading organizations from raw material suppliers, battery suppliers, traditional component suppliers, OEMs, utilities and public institutions work together with us to define strategies that work. Moreover, we have vast experience in other technology-related topics, such as "connected vehicles" and new materials.

For product creation, we support leading OEMs and suppliers in setting up and optimizing engineering organizations with a dedicated and experienced team and a wide range of tried-and-tested methods.
 

We also enhance our state-of-the-art knowledge by conducting leading studies and research on the most relevant product creation and e-mobility topics.

Your success is our key driver. Together, we develop pragmatic strategies to improve the competitiveness of engineering organizations and create a sustainable competitive edge at your company.

Product creation

Our team has proven experience with relevant product creation topics such as:

• Optimizing engineering efficiency though a set of proven levers
• Scenario-based long-term technology planning and innovation portfolio management
• Defining core competencies and partnering concepts to create sustainable competitive advantage
• Optimizing market-based product value – translating market needs into product features
• Defining and implementing benchmark modularization concepts, appropriate organizational structures and KPIs
• Target costing and product cost optimization
• Transforming the engineering organization – globalization and localization

e-mobility and new technologies

In addition, we have worked on strategic topics covering the entire eMobility value chain:

• Raw material suppliers
• Battery and other xEV system suppliers
• Traditional component suppliers
• OEMs
• Utilities
• Municipalities and governmental institutions

Together with our clients we have developed strategies covering most relevant eMobility topics, including:

• Market analysis and product positioning for xEVs
• Market entry strategy for xEVs
• Technology strategy and roadmap
• Make or buy strategies for xEV systems
• Partnering strategies to secure access to state-of-the-art xEV technologies
• Production footprint for xEV systems
• Cooperation models for engineering and manufacturing of xEV components and systems
• e-mobility innovative business models, including recharging infrastructure

Additionally, we worked on various market related technology topics, such as:

• Connected vehicles
• Active safety systems
• Thermo-management

To leverage our experience for your strategies, we have build up and continuously update a comprehensive component and technology market model which breaks down complete a complete vehicle in over 400 components, with a regional and segment spilt to provide off-the-shelf data on market volumes and drivers.