Technological change forces auto suppliers into a radical realignment, says Roland Berger

The trend toward e-mobility increases pressure on suppliers of traditional drive technology, with the consultancy’s robustness analysis finding the most significant challenges being liquidity management, modernization of IT systems and processes, and knowledge exchange.
The automotive industry is undergoing the biggest upheaval in its history, according to Roland Berger. The strategy consultancy says that e-mobility, autonomous driving, and the increasing digitalization of vehicles are forcing OEMs and suppliers to adapt their business models to radically changed conditions. In a study titled “Automotive suppliers: achieving resilience and getting ahead in a challenging world,” Roland Berger analyzed the situation of 35 organizations in the automotive industry based on its concept for robust organizations.

“Robustness means the ability of organizations to adapt and evolve, to overcome uncertainties, and to preserve their ability to function, their competitiveness, and their long-term growth,” said Ina Wietheger, Partner at Roland Berger. “In other words, this means that companies have to be in a position to persist even when the foundation of their operating model changes.”

Traditional automotive suppliers face numerous challenges, and the conditions that the automotive industry operates in are fundamentally changing. The study’s authors identified a number of main drivers of this transformation.

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