Current situation and future outlook
In the VDMA study „Transformation of Powertrain“, the electrification and its impact on the value added of vehicle powertrains by 2030 is examined:
For machines and plant builders and component manufacturers, the field of internal combustion engines will continue to be a substantial business. Improved powertrain technologies – for example, efficiency measures in the internal combustion engine and transmission – increase the requirements for the production technology.
However, the trend towards electrification affects the industry earlier than expected by looking at the predicted sales volumes. The necessary development and construction of production facilities takes place with considerable advance. This means the transformation process should already be triggered or must immediately start. Only in this way, the industry can secure its position and develop potential in new areas. In the long term, participation in the sales market for components of electric drives is an unconditional requirement for the economic success of component manufacturers and machine and plant engineers.
Strategic options for Action
In a first step, the existing business is fully analyzed. The 360° analysis approach examines important branches of the company such as Strategy & Business Model, Organization & Process, Research & Development, Production & Quality and Purchase & Supply Chain. The breakdown will provide a transparent Status Quo which exposes the degree of dependency to combustion engines and risk through e-mobility - “Risk Radar”.
After the assessment of the current situation, new strategic options are proposed. Depending on the Status Quo stabilizing, vitalizing, outsourcing, ramp-down or closing down measures of existing businesses are proposed. Also new business fields for products, markets and processes (lateral, horizontal and vertical diversification) on the FEV technology radar are assessed and prioritized. The result will be a transformation, scale-up or revitalization of existing businesses.
For the precise implementation of the strategic options, FEV Consulting develops a customized roadmap which defines specific actions for the mentioned branches of the company and establishes key tasks and milestones. A rough business plan model and scenario calculations give insights of investment demand, resources and financing.
The three Steps
FEV Consulting: Best of both worlds
FEV Consulting combines top management consulting expertise with the technical capabilities and knowhow of the FEV Group. Our deep industry knowledge enables us to create pragmatic solutions to some of the most pressing and complex issues facing today’s enterprises.
FEV Consulting works with clients to address their most challenging business issues. We employ an analytical approach, proven capabilities and – most importantly – real industry knowledge to resolve clients' problems. FEV Consulting features experienced consultants with real industry knowledge and the backing of FEV’s extensive technical expertise to provide solutions that are both practical and sustainable.
With our unique selling point, the combination of in-depth technical know-how with management and consulting competencies, we can ensure a successful transformation of business – not despite challenges but just because of new chances of an electrified automotive world.
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