It’s time to open our eyes. While we continue to celebrate “German engineering” and cultivate our premium image, our competitors from China and the USA are overtaking us – electrically, digitally and at prices that we can hardly compete with. If we don’t change our thinking quickly, we will soon only see the taillights of the competition.
The uncomfortable truth: we slept through the trend
Rather than focusing on torque and premium interiors, newcomers from the USA and China (e.g. BYD, Tesla) have long since taken the lead in electromobility and connectivity in the global market. Today, cars are no longer purely status symbols: value for money, connectivity and personalized interfaces are new priorities. This is where the competition scores because it has understood what customers really want.
What does the competition do better?
Customer centricity and technology
Customers are increasingly interested in smart features, autonomous driving and connectivity. Cars are becoming “smartphones on wheels” – the competition not only offers better interfaces, but also better prices.
Electromobility: a strong ‘commitment’
While we stuck to combustion engines and hybrid models for a long time, China has resolutely opted for electric vehicles. A wave of e-vehicles developed in China is now successful in markets all around the world , and these cars are not only convincing in terms of price, but also in terms of technology.
Fast development, fast implementation
The Chinese and US industries are agile and focus on rapid implementation. Trial-and-error principle instead of endless bureaucracy: anyone who needs three to five years to develop a new model has already lost.
The way out of the mess – time for radical change!
For decades, war premium status was a guarantee of stability and success for many companies, but this complacency is becoming dangerous in a rapidly changing market. It is no longer just a question of whether we are still a viable player in the game, but whether we still understand the new rules of the game at all. The answer to the challenge is not “evolution”, but revolution. The radical changes in a variety of external influencing factors (politics and regulations, demand and the market, geopolitical changes, competition and many more) mean that we must completely rethink our strategy. To return to our former strength, the following aspects must therefore be incorporated into future corporate, product and production strategies:
- Customer-centric innovation: The customer is the focus! We develop new business models and technologies that go far beyond traditional products and create a comprehensive mobility experience.
- Dynamic market adjustments: Using real-time feedback and precise market analyses, we adapt our products at lightning speed – for exactly what the customer needs now.
- Interdisciplinary collaboration: Put an end to silo thinking! A dynamic network of internal departments, suppliers and partners promotes innovation and accelerates product development.
- Proactive risk identification: Instead of acting reactively, we rely on continuous monitoring and analysis of market and geopolitical trends to identify and minimize risks at an early stage.
- Price offensive and volume strategy: The mass market demands affordable, well-equipped vehicles. Just focusing on premium is not enough – the competition shows how it’s done.
- Sustainability focus and transparency: We integrate environmental and social standards into production and the supply chain. This strengthens our brand image and creates trust among consumers.
We realize: We don’t determine the market – it determines us!
The 6th synchronization circuit
The established “synchronous lean factory” with its five synchronization circuits has ensured stability and efficiency for many companies for a long time. But in today’s VUCA world, this is no longer enough. To become competitive again in the dynamic automotive industry, a sixth synchronization circle is necessary: close coordination with external parameters such as market requirements, political guidelines and technological changes. This additional flexibility is the only way we can respond to changing customer needs, geopolitical uncertainties and technological upheavals and remain successful in the long term.
An appeal to all of us: We must finally shape things again, not just react
It’s five past twelve. We must not only react, but actively shape change. Chinese and US manufacturers are showing how it’s done – and we should see that as an incentive, not a disgrace. The time for hesitation is over!
Working together: This change is not a task for lone fighters. As a management consultancy, we know that solutions are available. We have the tools, the experience and the know-how to implement the necessary changes – but it takes courage to put all areas to the test: Product strategy, development speed, partnerships and pricing. We have to get out of our comfort zone, but without a radical rethink, the competition and our current customers will soon be waving at us in the rear-view mirror of their electric vehicles.
ConMoto and Horn & Company, as experts in operational excellence, have proven in many projects that change is possible. Successful change requires the right approach, a strong network, tried and tested tools and, above all, courage. We have the opportunity to put Europe back in the fast lane of the global mobility industry – we have the knowledge and the innovative strength, now we just need the will to put it to use. Let’s start a revolution in automotive mobility!
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