THE CASE FOR SELECTIVITY in the auto industry

Vehicle electrification, autonomy, and evolution to CO2 neutrality will become mainstream. However, the speed of implementation, issues involving cost curves, and the effects of regulation make timing uncertain. Therefore, the road to success is not yet paved; some of the pioneers are not yet profitable; and it remains to be seen which companies will lead in the new mobility world.

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This report reveals:

  • What top performing companies are doing to cause disruption or mitigate its impact
  • The factors affecting companies in the lowest segment
  • Whether these forces disrupt all companies equally
  • What anomalies tell us about the industry

This report reveals:

  • What top performing companies are doing to cause disruption or mitigate its impact
  • The factors affecting companies in the lowest segment
  • Whether these forces disrupt all companies equally
  • What anomalies tell us about the industry

The impact of disruption cycles on automakers and suppliers

The AlixPartners Disruption Insights automotive report analyzes the key factors impacting the industry and uncovers the implications for leaders, including:

  • Few companies, if any, can afford the massive investment required to lead on all fronts and as we are well below the inflection point, volumes remain muted: Make/buy/partner decisions are required to share the costs and leverage strengths.
  • Change requires a controlled migration from the historic automaker-led linear value chain to more connectivity, autonomous driving, shared mobility, and electrification (CASE)-centered value chain.
  • The definition of automakers’ core system technologies shifts in a CASE environment; winning automakers and suppliers (new and existing) will proactively define the shifts in the offerings and business models.
  • Internal combustion engine (ICE)-related businesses are in decline, but generate significant cash flow and will be increasingly managed and funded separately from the CASE businesses.

AlixPartners Disruption Insights identifies strategic priorities and tactics that successful businesses are employing to survive—and thrive—in the midst of ongoing disruption cycles. Complete the form to download the full automotive industry analysis.