Indego, automotive consultancy, automotive consulting, steve young
Your Opinion
Has the recession affected your future car buying habits?
Industry ContextThe automotive industry today follows the same fundamental business model as it did at the start of the 20th century. Automotive manufacturers design and assemble cars using parts sourced from a number of suppliers, and then distribute and sell them under their own brand through independent dealerships. This automotive business model includes a number of inherent weaknesses including high product development costs, high fixed costs in manufacturing and long development leadtimes, all of which lead to a need to achieve high capacity utilisation to be profitable. This in turn drives the “moving the metal” mentality which is a short term focus on vehicle sales rather than a longer term, broader perspective of how best to make a return for shareholders through providing consumers with personal mobility.
IndeGo addresses all parts of the automotive value chain, and moves the focus towards the service aspects of providing personal mobility to customers, rather than the physical product itself or the showroom sales transaction. It affects all participants in the automotive value chain today and delivers a higher return on investment than currently achieved by the automotive industry. |
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Steve's Blog
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- Daimler Renault deal will have wideapread impact
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The alliance announced today
between Daimler AG
and Renault
has been widely predicted and commented on for some weeks, including the 3.1% cross-shareholdings (split between Renault and Nissan in the case of the investment in Daimler). However, whilst this deal was expected to focus on small cars, providing future product for Daimler's smart brand, and economies of scale for Renault-Nissan through supplying the platform and powertrain, the small print contains a number of other areas of collaboration, and the implications reach well beyond the three parties directly involved. MORE






