Vehicle of the Future

EV enthusiast and activist

Traditional Automakers are Terrified

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Perhaps it is hyperbolic to suggest a corporation is terrified since corporations don’t have emotions, they aren’t alive. Though the C-suite of humans on the other hand are very concerned. Concerned with making money for their stockholders, it borders on pathologic behavior.

Most auto C-suites don’t get bonuses if they don’t meet certain targets. They all watch every aspect that may affect their bottom line for which the specialize. From raw materials, to supply chain distribution, to labor staffing, to market fluctuations of exchange rate of their respective currency, to brand image, to recalls, to regulations, to fuel costs of their products, to warranty claims, to potential maintenance co-profit with dealerships, to OEM after market profit, to competitors…

Lots of aspects of EVs represent a threat to traditional auto makers. Especially auto makers that only makes EVs such as Tesla, Lucid, Faraday Future, Atieva and more.

Raw materials of batteries have fallen at an incredible rate, potential maintenance profit is negligible, fuel costs are falling (solar and wind), customers have recorded high ownership satisfaction.

Now imagine you are in charge of mitigating this threat as a C-suite. Remember, stockholders are counting on you to make increasing profit, not the same profit as last quarter. Oh and Generation Z say they will be driving less or has no interest in owning cars, more so than previous generations (read public transportation, urban living and Uber), and Generation Y (millennials) want greener and more technically connected cars, Generation X is getting older and want self driving cars. The baby boomers? Some have informed you they’ve bought their last vehicle recently…

How might you handle this threat?

Pretty terrifying isn’t it?


Written by devinserpa

March 17, 2017 at 3:49 am

Posted in Uncategorized

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