11-26-2016, McKinsey.com -- As the high-tech and automotive worlds merge—with four disruptive technology trends driving change—a complex ecosystem is creating new rules for success.
As four technology trends reshape the global automotive sector, customer preferences are moving away from its traditional strongholds, such as chassis and engine development. This shift in customer preferences and the sheer size of the automotive sector have attracted new players: a potent mix of large high-tech companies and start-ups. Both differ from the automotive incumbents on virtually every level.
These new entrants and the disruptive trends they bring—electrification, autonomous driving, diverse mobility, and connectivity—will transform typically vertically integrated automotive value chains into a complex, horizontally structured ecosystem. The newcomers are well positioned (and expected) to make moves in novel areas such as autonomous driving. Consequently, today’s OEMs and tier-one suppliers must abandon strategies aiming at total control of vehicles and instead pick and choose where and how to play by shedding assets, streamlining operations, and embracing digital acquisitions.
Read the rest of the story HERE.
Other News
- AUTOTEK STREET MACHINE AMPLIFIERS CREATE CLEAN PERFORMANCE IN COMPACT SIZE in Product News
- Sundown Audio HF-R35 Now available in Product News
- Sundown Audio HF-R35 Now available in Product News
- MECP Launches Apple and Android Apps in Product News
- MB QUART HEADS TO JEEP BEACH 2024 with ALL-NEW JEEP JK TUNED AUDIO in Product News