Automotive

Industry Overview:

The automotive industry is one of the most significant industries in the world. Historically, it has accounted for over 10% of the GDP of N. America, Europe, and Japan and one in nine jobs. However, growth is shifting to emerging markets and the industry has found it hard to adjust to recent challenges. Several automotive companies are struggling with internal issues that inhibit reform.

Trends:

The automotive industry is currently faced with macro economic forces that are causing a major upheaval like never before. The developed world continues to have a diminishing birthrate while the developing countries are gaining prominence in the global economy. Hundreds of millions of people are striving to come our of poverty and they see car ownership as a symbol of their improved standard of living as they move to the middle class. The US is becoming more and more stifled with debt while people have increasing disposable income in countries like India and China. Over time it could be Africa's turn to see significant growth in its economy. Brazil, Vietnam, and Mexico are also waiting in the wings.

The DestinHaus Approach:

The automotive industry desperately needs to rethink its business model. The US, Europe and Japan cannot be viewed as the nerve center of the industry any more. There is immense potential for increased innovation and productivity by thinking globally and leveraging the concept of global production chains. In fact, design, development and production need to be done on a global basis. Automotive companies have established affiliates in different parts of the world. However these affiliates become silos and not as part of one global entity. Leadership needs to be trained so as to be more global, more innovative and willing to get out of their comfort zone.