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"The challenges facing automotive market have not been seen for over 20 years. The industry will change forever."

ENGELBERT WIMMER, AUTOMOTIVE EXPERT,
PA CONSULTING GROUP

 

Shifting gears in automotive industry

The global automotive industry used to produce more than 60 million vehicles annually. Although this figure has reduced down to 50 million during recent turmoil, the automotive industry accounts for 5% of the world’s manufacturing employment. However, the competitive landscape is getting more congested. The challenges within automotive market have not been seen for over 20 years. The industry will change forever - in terms of leading markets as well as major players.

Previously automotive manufacturers had competed fiercely against each other, rooted in rigid structures and protected by high market entry barriers. With Asian car makers aggressively growing market share, and emerging markets challenging traditional cost structures, suppliers and manufacturers needed to continually focus on lean and cost-effective processes and products, and industry collaboration - while still delivering breakthrough innovation. Now they face a different kind of threat from new players - requiring new strategic alignments and ability to capture value much further downstream than before.

PA Consulting Group's manufacturing teams have sound industry knowledge - over 70% of the consultants worked for car makers, Tier1 and Tier2 suppliers around the world. They understand the automotive sector and are able to bring deep insight and practical experience to assignments with clients.

PA helped Fiat, Magna, Inalfa and German car manufacturers transform their organisations from R&D and purchasing up to operations and sales. This includes services such as restructuring and turnaround, cost optimisation across the supply chain, supplier relationship management, manufacturing strategy and relocation as well as sales and after sales process efficiency.

To start the dialogue about our insights in strategies to outperform competition in the next decade, please contact us now.