The global automotive industry is facing a “huge upheaval” as part of the shift in production and sales to emerging markets, according to international consultants Arthur D Little.
A.D. Little say the financial crisis is accelerating changes to the global economy through the development of the so-called BRIC (Brazil, Russia, India and China) states. These states have sufficient purchasing power and large amounts of capital that is being used for investments and acquisitions, the Little report says.
Marc Winterhoff, the head of Little’s Automotive Practice, predicts “The current ‘exclusive’ club of global players will extend to include five new members from China and one new member from India by 2020.”
In the area of emerging OEMs, the lack of know-how is often brought up as an argument. “Here we are currently seeing that they obtain their necessary know-how through acquisitions and especially through suppliers and development service providers in order to offset their problems of quality, lack of technology and management ability.“Established manufacturers must develop strategies to secure the long-term exclusive access to technology innovation.”
