Time to recalibrate: The balance of power has changed in the automotive value chain<\/h1>\n\n Munich, May 2023<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\n \n\n\n \n \n\n F<\/span>\n uture-ready OEMs know that suppliers are in control of the technologies they need, and true collaboration is the only way to manage risk and drive innovation. \u00a0<\/p>\n\n <\/div>\n\n \n\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tThe transformation of the automotive industry from the internal combustion engine to electric, connected and more autonomous vehicles is a\u00a0huge technical challenge. That is undeniable. But focusing only on the new manufacturing techniques that need to be mastered overlooks a broader issue:<\/span><\/div> w<\/span>e are witnessing a tremendous shift in the balance of power <\/b>in the industry; from OEMs to suppliers, from western regions to Asia, from hardware to software. <\/span><\/div>
The logic of the way the auto industry has organized itself for decades no longer works.<\/span><\/div>\u00a0<\/div>As the chart below (Figure 1<\/i>) shows, traditionally OEMs have kept the manufacturing of components that are of high strategic and customer value in-house. Those included the ICE powertrain. However, for the new high-value technologies such as batteries for electric vehicles and autonomous driving systems, the old model has broken down. Massive investments are necessary and are already being made to counteract this development. <\/span><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFigure 1: Where value is created: old vs. new<\/em><\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tVALUE GENERATION<\/span><\/strong><\/h5>In a traditional setup the OEM produced the parts of high strategic values for their customers inhouse. In the last years this changed dramatically. Immense efforts are necessary to regain power over key-characteristics of the product<\/em><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2023\/05\/2023-04-21-Recalibrate.png\" "\\"\\"")
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uture-ready OEMs know that suppliers are in control of the technologies they need, and true collaboration is the only way to manage risk and drive innovation. \u00a0<\/p>\n\n <\/div>\n\n \n\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
The logic of the way the auto industry has organized itself for decades no longer works.<\/span><\/div>
Figure 1: Where value is created: old vs. new<\/em><\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t In a traditional setup the OEM produced the parts of high strategic values for their customers inhouse. In the last years this changed dramatically. Immense efforts are necessary to regain power over key-characteristics of the product<\/em><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\tVALUE GENERATION<\/span><\/strong><\/h5>
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t