European Automotive Facts & Myths: Post #5 of 6
In this fifth article of our six part blog series, we explore a the topic of technology adoption in the automotive industry. Many European car companies are still relying on outdated technologies & practices.
#5 FACT! The automotive industry is slow to adopt new technologies
The European car industry is still best known for its rapid innovation and a relentless drive to deliver new models. In 2013 the region produced 16.2 million vehicles, nearly a fifth of those manufactured across the globe, while the industry accounted for five percent of the EU employed population – almost 13 million people.
But despite a constant technology race between manufacturers, the automotive industry is short-sighted when it comes to adopting new technologies
In each region, automotive OEMs and suppliers face building pressures through increasing costs of goods sold (COGS) and eroded margins. Yet the adoption of technologies capable of changing the traditional way of viewing manufacturing, tooling, component changes and product development process, remains slow.
These enterprise product cost management technologies provide the means to quickly evaluate a variety of different cost scenarios for everything from entire vehicle platforms to individual parts and suppliers. This includes any number of different feature/value trade-offs representing a variety of product variants for different global markets – including labour, materials, manufacturing processes, regulatory requirements, logistics and supply bases. As a result, manufacturers can now assess the most advantageous approach for any product or part based on cost, quality and time-to-market.
Want to learn more?
Download the whitepaper, How Automotive Manufacturers Can Navigate the Cost of Increased Government Regulation, to learn more about these issues, and about new strategies that can help automotive manufacturers navigate the cost impact of these requirements across the entire product development process. This whitepaper also presents ways to identify new cost savings on individual parts and products as well as entire product assemblies and platforms to offset the increased costs of new regulations.
Other posts in the European Automotive Facts and Myths series