top 5 trends in automotive oems

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Automotive Analyst, Aikens Investments, LLC Fred Aikens Top 5 Trends in Automotive OEMs As disruptive technologies are changing the landscape of the automotive industry, Original Equipment Manufacturers (OEM) are feeling the impact. New inventions in automobiles mean that OEMs have to adapt. And if they are able to adjust quickly, they may be poised to win big. Eight experts in the automotive industry came together to delve into the trends and drivers that are defining the space. Connect directly to your market. Convetit is the network where teams and experts connect, providing custom research and actionable insights in days instead of months. Learn more at One of the leading trends that one of the leading trends in the automotive OEM landscape is the approach of self-driving vehicles. Though recent setbacks have caused some delays, leading car companies are still aiming to have autonomous vehicles on the road by 2020. Major implications for OEMs include the possibility of a reduction in crashes, meaning that fewer parts will need to be manufactured. Autonomous vehicles will not only have an impact on personal ownership, but on the trucking industry as well. Self-Driving Vehicles Participants: Senior Director of Marketing & Product Engineering, Gold Eagle Co. Tom Bingham President & CEO, Trostel, Ltd. Steve Dyer Breakthrough Technologies Sr. Manager, Alcoa Luis Fanor Vega Leader Strategic Pursuits, Tata Consultancy Services Kishor Akshinthala Operations Manager, Calsonic Kansei Alaundro Conerly convetit.com “The most disruptive and emerging trend in the automotive space—driverless cars—has huge implications that range from trucking to the insurance industry and changes in car ownership in a sharing economy in the near future.” CONVETIT FORESIGHTS TM Principal & Practice Lead for Connected Data, MaPS Ciju Nair, Ph.D. Senior Consultant, Productivity Inc. Ahmet Caglayan Here are 5 Automotive OEM trends that top experts have identified as driving the industry: As Corporate Average Fuel Economy (CAFE) standards continue to reform, one of the simplest ways to achieve them is through weight reduction. Automakers that are seeking to achieve higher MPG will do so through increased collaboration with OEM suppliers for more lightweight materials, engine downsizing, and design optimization. Additionally, the ability to 3D print parts will have an impact on the fabrication of parts, and part-consolidation will also have a hand in weight reduction. Weight Reduction Principal & Practice Lead for Connected Data, MaPS Ciju Nair, PhD Senior Director of Marketing & Product Engineering, Gold Eagle Co. Tom Bingham Automotive Analyst, Aikens Investments, LLC Fred Aikens “I feel like the immediate beneficiaries from this trend will be high strength steel and aluminum vendors as well as those best suited to facilitate the welding/joining of the materials.” “BMW has proven with its i3 EV that a carbon-fiber-intensive vehicle can be brought to market successfully at a less-than-supercar price point (~$42,000). We can expect to see other manufacturers add more carbon fiber going forward. Other lightweight technologies (high-strength steel, aluminum, magnesium, CFRP) will also help manufacturers meet the ever more stringent fuel economy regulations.” The already-popular trend of ride-sharing will continue to expand, posing the possibility of a significant disruption for sectors such as public transportation. As they grow, automotive OEM companies are rushing to partner with leading ride-sharing companies. Additionally, the higher standards for vehicles held by companies like Uber and Lyft may have an impact on the sales of new vehicles and parts. This trend goes hand in hand with that of self-driving cars as ride-sharing companies look to outfit their fleets with autonomous vehicles. Ride-Sharing Breakthrough Technologies Sr. Manager, Alcoa Luis Fanor Vega “Having driverless vehicles on roads will require new regulations to minimize accidents and maximize safety of passengers and pedestrians. This will impact the implementation time of these vehicles and will also influence the unit cost of vehicles in the future...Design and materials selection of new structures will have significant impact on safety and cost of future vehicles. The shift from individual ownership to fleet ownership will enable ridesharing.” 1 2 3 An increase in customer demand for customization, entertainment, and communication has spurred an increased focus on telematics. The integrated use of technology in vehicles, including semi-autonomous features such as automatic parallel parking and sensor-based reporting on car maintenance and usage, will likely help with insurance costs, as better-maintained vehicles tend to be safer. Telematics Leader Strategic Pursuits, Tata Consultancy Services Kishor Akshinthala “Auto makers are increasing infotainment and telematics content as a result of consumer demand for customization, entertainment and communication (V2V, V2I). The cost of electronics and software content in autos was less than 20% of the total cost a decade ago and today it is as much as 35%...Telematics features also present the scenario to forge a closer relationship with customers and increase margins. OEMs and dealers are piloting offerings on more convenient proactive service, alerting a car owner to upcoming maintenance or repairs.” 4 In a fast-changing automotive landscape, safety is definitely a critical focus for OEMs. Telematics will have an impact on improving safety features, such as lane-keeping assistance. Safety Regulation Senior Consultant, Productivity Inc. Ahmet Caglayan “The new age of the auto industry with more accident-avoidance technologies, such as collision-avoidance sensors and electronics, self-inflating tires, autopilot, self diagnostics and maintenance components, will lead to better safety records and towards zero accidents as well as lower insurance and maintenance costs” “Telematics in relation to maintenance in particular is a game changer for OEMs and dealers. As a tier 2 OEM supplier and also supplier to the independent shops, we are seeing a strong shift in market share towards auto dealerships. Service is by far the most profitable part of a dealer's business, and parts serve the same role in the OEM's business model.” 5 "Amidst changing auto OEMs landscape, safety is definitely a critical focus item. Telematics features, including semi-autonomous driving aids such as automatic parallel parking and lane-keeping assistance as well as sensor-based reporting on car maintenance and usage, present the scenario to forge a closer relationship with customers and increase margins. OEMs and dealers are piloting offerings on more convenient proactive service, alerting a car owner to upcoming maintenance or repairs." Leader Strategic Pursuits, Tata Consultancy Services Kishor Akshinthala Senior Director of Marketing & Product Engineering, Gold Eagle Co. Tom Bingham Senior Director of Marketing & Product Engineering, Gold Eagle Co. Tom Bingham "Companies like Uber are betting on big rigs as companies’ race toward self-driving future. Meanwhile, advanced driver assistance systems (ADAS) will play a crucial role in preparing regulators, consumers, and corporations for the medium-term reality of cars taking over control from drivers." Leader Strategic Pursuits, Tata Consultancy Services Kishor Akshinthala “I believe strongly that ride-sharing is going to be an important emerging trend, with unpredictable consequences on the entire automotive industry. For instance, what impact will ride sharing have on public transportation, and therefore miles driven in urban and suburban areas?”

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Page 1: Top 5 Trends in Automotive OEMs

Automotive Analyst, Aikens Investments, LLC

Fred Aikens

Top 5 Trendsin Automotive OEMsAs disruptive technologies are changing the landscape of the automotive industry, Original Equipment Manufacturers (OEM) are feeling the impact. New inventions in automobiles mean that OEMs have to adapt. And if they are able to adjust quickly, they may be poised to win big. Eight experts in the automotive industry came together to delve into the trends and drivers that are defining the space.

Connect directly to your market.Convetit is the network where

teams and experts connect, providing custom research and actionable insights

in days instead of months.

Learn more at

One of the leading trends that one of the leading trends in the automotive OEM landscape is the approach of self-driving vehicles. Though recent setbacks have caused some delays, leading car companies are still aiming to have autonomous vehicles on the road by 2020. Major implications for OEMs include the possibility of a reduction in crashes, meaning that fewer parts will need to be manufactured. Autonomous vehicles will not only have an impact on personal ownership, but on the trucking industry as well.

Self-Driving Vehicles

Participants:

Senior Director of Marketing & Product Engineering, Gold Eagle Co.

Tom Bingham

President & CEO, Trostel, Ltd.Steve Dyer

Breakthrough Technologies Sr. Manager, Alcoa

Luis Fanor Vega

Leader Strategic Pursuits, Tata Consultancy Services

Kishor AkshinthalaOperations Manager, Calsonic

Kansei

Alaundro Conerly

convetit.com

“The most disruptive and emerging trend in the automotive space—driverless cars—has huge implications that range from trucking to the insurance industry and changes in car ownership in a sharing economy in the near future.”

C O N V E T I T F O R E S I G H T S T M

Principal & Practice Lead for Connected Data, MaPS

Ciju Nair, Ph.D.Senior Consultant, Productivity Inc.

Ahmet Caglayan

Here are 5 Automotive OEM trendsthat top experts have identified

as driving the industry:

As Corporate Average Fuel Economy (CAFE) standards continue to reform, one of the simplest ways to achieve them is through weight reduction. Automakers that are seeking to achieve higher MPG will do so through increased collaboration with OEM suppliers for more lightweight materials, engine downsizing, and design optimization. Additionally, the ability to 3D print parts will have an impact on the fabrication of parts, and part-consolidation will also have a hand in weight reduction.

Weight Reduction

“Principal & Practice Lead for Connected Data, MaPS

Ciju Nair, PhD

“Senior Director of Marketing & Product Engineering, Gold Eagle Co.

Tom Bingham

“Automotive Analyst, Aikens Investments, LLC

Fred Aikens

“I feel like the immediate beneficiaries from this trend will be high strength steel and aluminum vendors as well as those best suited to facilitate the welding/joining of the materials.”

“BMW has proven with its i3 EV that a carbon-fiber-intensive vehicle can be brought to market successfully at a less-than-supercar price point (~$42,000). We can expect to see other manufacturers add more carbon fiber going forward. Other lightweight technologies (high-strength steel, aluminum, magnesium, CFRP) will also help manufacturers meet the ever more stringent fuel economy regulations.”

The already-popular trend of ride-sharing will continue to expand, posing the possibility of a significant disruption for sectors such as public transportation. As they grow, automotive OEM companies are rushing to partner with leading ride-sharing companies. Additionally, the higher standards for vehicles held by companies like Uber and Lyft may have an impact on the sales of new vehicles and parts. This trend goes hand in hand with that of self-driving cars as ride-sharing companies look to outfit their fleets with autonomous vehicles.

Ride-Sharing

“Breakthrough Technologies Sr. Manager, Alcoa

Luis Fanor Vega“Having driverless vehicles on roads will require new regulations to minimize accidents and maximize safety of passengers and pedestrians. This will impact the implementation time of these vehicles and will also influence the unit cost of vehicles in the future...Design and materials selection of new structures will have significant impact on safety and cost of future vehicles. The shift from individual ownership to fleet ownership will enable ridesharing.”

1

2

3

An increase in customer demand for customization, entertainment, and communication has spurred an increased focus on telematics. The integrated use of technology in vehicles, including semi-autonomous features such as automatic parallel parking and sensor-based reporting on car maintenance and usage, will likely help with insurance costs, as better-maintained vehicles tend to be safer.

Telematics

“Leader Strategic Pursuits, Tata Consultancy Services

Kishor Akshinthala“Auto makers are increasing infotainment and telematics content as a result of consumer demand for customization, entertainment and communication (V2V, V2I). The cost of electronics and software content in autos was less than 20% of the total cost a decade ago and today it is as much as 35%...Telematics features also present the scenario to forge a closer relationship with customers and increase margins. OEMs and dealers are piloting offerings on more convenient proactive service, alerting a car owner to upcoming maintenance or repairs.”

4

In a fast-changing automotive landscape, safety is definitely a critical focus for OEMs. Telematics will have an impact on improving safety features, such as lane-keeping assistance.

Safety Regulation

“Senior Consultant, Productivity Inc.

Ahmet Caglayan “The new age of the auto industry with more accident-avoidance technologies, such as collision-avoidance sensors and electronics, self-inflating tires, autopilot, self diagnostics and maintenance components, will lead to better safety records and towards zero accidents as well as lower insurance and maintenance costs”

““Telematics in relation to maintenance in particular is a game changer for OEMs and dealers. As a tier 2 OEM supplier and also supplier to the independent shops, we are seeing a strong shift in market share towards auto dealerships. Service is by far the most profitable part of a dealer's business, and parts serve the same role in the OEM's business model.”

5

“"Amidst changing auto OEMs landscape, safety is definitely a critical focus item. Telematics features, including semi-autonomous driving aids such as automatic parallel parking and lane-keeping assistance as well as sensor-based reporting on car maintenance and usage, present the scenario to forge a closer relationship with customers and increase margins. OEMs and dealers are piloting offerings on more convenient proactive service, alerting a car owner to upcoming maintenance or repairs."

Leader Strategic Pursuits, Tata Consultancy Services

Kishor Akshinthala

Senior Director of Marketing & Product Engineering, Gold Eagle Co.

Tom Bingham

Senior Director of Marketing & Product Engineering, Gold Eagle Co.

Tom Bingham

"Companies like Uber are betting on big rigs as companies’ race toward self-driving future. Meanwhile, advanced driver assistance systems (ADAS) will play a crucial role in preparing regulators, consumers, and corporations for the medium-term reality of cars taking over control from drivers."

“Leader Strategic Pursuits, Tata Consultancy Services

Kishor Akshinthala

“I believe strongly that ride-sharing is going to be an important emerging trend, with unpredictable consequences on the entire automotive industry. For instance, what impact will ride sharing have on public transportation, and therefore miles driven in urban and suburban areas?”