29 Aachen Colloquium Sustainable Mobility

New Rules of Play for Automotive Suppliers Automotive Supplier Tech Wars

Authors

Johannes Berking, Simon Schnurrer, Kevin Rebbereh, Oliver Wyman, Hamburg, Germany

Summary

The toughest decade for many suppliers will be the next one. In a balancing act, suppliers - many of which are in full crisis mode - must manage the drawdown of declining product lines while simultaneously creating their future core offerings.  
The now common modus operandi of maintaining “old tech” solutions, while rapidly venturing into “new tech” business areas can result in overly complex product portfolios and inflated R&D budgets. Potentially putting a company’s very survival at risk, how players approach this challenge can profoundly influence their chances of success. For instance, strongly incentivized by current performance measures, business unit leaders tend to nurture “growth” and “cash cow” offerings within their own sphere of influence, even when they would mesh better with other business segments of the company. 
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