Eight Challenges for Survival in the Automotive Parts Industry
Automotive Technology, Nikkei Business Publications Inc.
The Automotive Strategy Team
The team recently published a new book in Japanese: "Eight Challenges for Survival in the Automotive Parts Industry." The authors explain eight challenges in terms of strategy for automotive parts makers to survive in the volatile environment of the automotive industry.
Author: The Roland Berger Automotive Competence Center (Automotive Group)
Since Gottlieb Daimler and Karl Benz invented automobiles more than a century ago, the car has evolved incessantly. Beginning with the engine, car functions have changed dramatically and both ride comfort and overall driving experience have increased significantly. Despite this, basic mechanisms remain unchanged. These include the petroleum-burning internal combustion engine and the gear transmission that drives the wheels.
However, cars today are on the verge of departing from the internal combustion engine and are about to enter a new phase of evolution. With this change, gear-based transmissions may disappear completely. Power-transmission-driven axles and hydraulic systems may also one day become things of the past. Indeed, hybrid cars are already in use and progress is being made in R&D related to electric and fuel cell cars. In terms of driving technology, rapid advances are being made in the R&D of cars that can detect other vehicles and respond appropriately. In addition to "running," "turning" and "stopping" technology, road technology for "linking" is also moving ahead daily. Not only technology, but modularity, systemization and globalization are rapidly increasing importance of the role played by automobile parts manufacturers.
The greatest turning point in the history of the automobile came in 1908 when Henry Ford conceived the idea of mass producing his Model T. Today, the industry is facing its next greatest turning point. At the very least, car parts manufacturers are experiencing a more competitive environment than ever before.
In this book, the authors explain in detail eight issues that car parts manufacturers in the current environment must resolve in order to survive. These include technological development, the strengthening of electronics and entry into new markets.
(Quoted from the Introduction of "Eight Challenges for Survival in the Automotive Parts Industry.”)
