Indego automotive concept, automotive consulting, steve young
Your Opinion
How important in the future is it to you to have your own car?
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. |
Latest News
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- GMAC moves to access bail-out
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- Honda slashes more production units from annual plan
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Steve's Blog
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- Feeding the habit?
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I have commented before
about the implications of the credit crunch on vehicle manufacturers as they have been forced to take writedowns of hundreds of millions of dollars on the loans and leases they used to prop up their sales volumes. In this last week, we have seen the obvious solution to this (if you are as addicted to this particular fix as the world's automakers seem to be) which is to hive off those toxic loans to your friendly government so that you can start all over again! MORE






