Focused strategies to penetrate former fortresses

15. July 2020
by Maximilian Ebner

For ages the automotive industry enjoyed strong margins and a stable market environment. High capex requirements and complex production of high-tech vehicles dug deep moats for new players to enter.

However in the new age of CASE, when high-tech is redefined and customer expectations shift from the vehicle to in-car infotainment, automotive incumbents are too reluctant to cannibalize their cash cows.

In the US, investors realize that they can build bridges across these moats. They pursue ambitious visions to take advantage of shifting expectations and deploy courageously white powder to let the capex requirement appear negligible.

In Europe, incumbents and investors seem to lack ambition and / or courage to set the trend rather than following the pressure.

With this regard, we need to recoup the visionary spirit of Gottlieb, August, Ferdinand et al and the courage of RJ, Trevor, Elon, et al to combine them in a focused strategy that transfers Europe's automotive legacy into the new era and penetrate former fortresses (if necessary).

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.

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