Indego automotive concept, automotive consulting, steve young
Your Opinion
How much extra would you pay each month to get the "Peace of Mind" and "Predictability" offered by IndeGo, compared to what you spend today?
Business ModelIndego challenges the existing automotive business model with a customer centric focus and simplified automotive manufacturing processes. From an automotive industry perspective, IndeGo moves the emphasis from designing and producing cars, to a customer-centric business which buys or builds, and then operates a fleet of cars as assets, matching those cars to the needs of customers, and selling goods and services related to the vehicle usage over the whole life cycle. This is in contrast to the traditional automotive industry business model where the manufacturer derives little value from the car once it has been sold, and virtually none once it has moved onto it’s second and subsequent owner.
Innovation in product design is more focused on providing flexibility of specification throughout the vehicle life and including features which allow additional services to be offered to the customer such as remote condition monitoring. The car manuafcaturing process is simplified through a greater reliance on modular design their supply by key suppliers. Technology changes reduce the scale dependencies of manufacturing and allow smaller, simpler assembly plants closer to the customer. Reconditioning cars between users, including technical upgrades and feature changes, becomes an industrial process in it’s own right. Customer-facing functions such as the call centre become the new core activity, with the effective management of defleeting and reallocation of vehicles to new customers a critical success factor. |
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- Credit Crunch hits Residuals
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In the last few days we have seen writedowns of hundreds of millions of Euros by BMW
and Daimler
related to their exposure to residual values of vehicles which they leased in the US. They will not be the last to have to recognise that the value of the vehicles that they leased in the last couple years now have a lower value when it comes to resale than originally assumed . This was one of the issues which we considered within the IndeGo concept, as the business was based entirely on leasing, rather than selling vehicles. MORE





