For several years automobile manufacturers and equipment suppliers (OEM and OES) have been confronted with a “scissor effect” that systematically puts pressure on their margins, with:

  • Structural over-capacity, particularly in mature economies
  • Increasingly strict environmental constraints
  • Enhanced customer expectations, calling for more equipment and greater personalisation without an increase in price

The 2008/2009 crisis only exacerbated these constraints.

To meet these challenges, OEM’s and OES’ will have to:

  • Continue a vertical de-integration strategy; with OEM’s focusing their efforts on shared platforms and modular assembly, and OES’ planning to reach critical mass in key technologies through acquisitions or mergers
  • Implement innovative strategies by developing new offers (electric or hybrid cars), new business models (sale of mobility solutions, rental/sale of electric car chargers, car-sharing services), and personalised services
  • Enhance their top line by offering innovative marketing solutions, for example through brand differentiation