SHOPSMART AUTOS – CUSTOMER INFORMATION – JULY 2, 2021 (PT.2)
The role of manufacturers
For autonomy to become a reality, there are efforts that manufacturers must make to enhance their driverless offerings. One step could be implementing artificial intelligence into the back-, middle- and front-office processes, which would allow companies to accelerate their operational speed and their ability to derive insight into all aspects of their operations in material ways. European manufacturers already embed millions of lines of code in the latest cars rolling off their factory floors; the next phase of autonomous driving clearly needs the engineering prowess to design, produce, and distribute successful cars, as well as the digital smarts. New opportunities and partnerships could emerge to build, deliver, and consume products and services based on the insights across the value chain. To stay ahead of the curve, leaders should set a 12-month target in which they aim to match their technology investments to that of the anticipated growth in data volumes. However, like so many other industries, car manufacturers have been significantly impacted by the pandemic. Most have been forced to furlough a large percentage of workers, and revenues have been significantly dented, so investment in new technologies like driverless cars has been reduced or put on hold. In fact, Uber recently announced that it is selling off its self-driving car business to focus on other, perhaps more important and successful, areas of revenue. While the time will likely come for many manufacturers to truly invest their manpower and money in the development of exciting, emerging technologies like self-driving cars, capital and demand are low, and the technology is still in the early stages of development This trend is expected to continue throughout 2021, with more automotive companies pivoting to focus back on the basics, such as using imagery, connected devices, and AI to make factories safer; implementing machine learning models to predict and prevent machine failures; making their online presence stronger; or forging partnerships outside their ecosystems. Additionally, with global supply chains significantly disrupted by the pandemic, it is vital that manufacturers make the most of available data and analytics to reimagine how to source, store, and assemble in a way that reduces operational uncertainties and optimises overall supply chain cost.
The future is electric
Following the UK’s ban on new gasoline and diesel cars from 2030, one emerging area at the forefront of car manufacturers’ minds is electric vehicles. However, demand for such cars is limited by their higher price point, which means manufacturers have an important role to play in overcoming this challenge. Suggested areas of priority for reducing costs include value chain integration, manufacturing, and speeding up R&D by increasing agility and enabling virtual prototyping. Regardless, a combination of global green goals, an impending ICE ban in the UK, and the EU’s target to cut greenhouse gas emissions for transport by 60% (from 1990 levels) by 2050 will make the production of electric vehicles one area in which we can expect to see further advancement in 2021. Ultimately, while the time will likely come for many manufacturers to truly invest their manpower and money in the development of exciting, emerging technologies like self-driving cars, capital and demand are low, and the technology is still in the early stages of development. For now, there are many other areas of investment, such as electric vehicles, that manufacturers can and should be focusing on to meet current consumer demands and see return on their investments in the short-term.
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