Automotive Ventures’ Post

Software-Defined Vehicles require close collaboration between the OEMs and technology partners to ensure all the pieces come together! I’m excited to discuss what we are doing at Bosch and hear from other experts in our industry at CAR MBS on August 7th. Join my session with Scott Tobin, Laxmi N Rayapudi, Noriko S., and James Buczkowski and hear our answer to "The Software Symphony: Can Automakers & Tech Giants Orchestrate a Collaborative Future?". Register via the link in the comments! Bosch USA Center for Automotive Research

Foxconn’s Whitelabel Revolution: Redefining the Auto Industry? 🚘🌍 The shift to e-mobility in the automotive industry is continuously breaking down traditional entry barriers such as complex combustion engine production. Now, Foxconn—tech supplier of Apple and its iPhone—is taking a game-changing approach to car production. How is Foxconn disrupting the market? ⚙️ Whitelabel Cars: Foxconn’s innovative model involves designing and producing cars that other companies can brand as their own. This approach enables: 1️⃣ Licensing of customizable designs, software, and features 2️⃣ Seamless production by Foxconn, leveraging its manufacturing expertise Empowering Mobility companies Foxconn’s whitelabel model opens new opportunities for businesses like Uber to revolutionize their fleets. By leveraging Foxconn’s expertise: 🚗 Branded Vehicles Made Easy: These companies can launch their own vehicle lines, strengthening their market identity and enhancing customer loyalty with personalized branding. 💡 Minimized Development Risks: Without investing in expensive R&D or manufacturing, they can focus on customizing software, features, and design to meet their unique needs—while Foxconn handles the complex production process. Foxconn enables mobility providers to innovate and scale rapidly, transforming how brands approach the automotive market. What challenges could arise? 💰 Initial investment: Scaling this model requires significant capital to refine manufacturing processes and secure partnerships. 🛡️ Consumer trust: As the vehicles are sold under various brands, maintaining consistent quality and safety will be critical. The big picture? Foxconn’s model accelerates a key industry trend: Hardware is becoming commoditized, while software and user experience define differentiation. With this approach, new players can enter the auto market with ease—shaking up competition for traditional OEMs. ❓ Will this strategy redefine automotive manufacturing, or will traditional carmakers adapt to hold their ground? #eMobility #Innovation #Automotive #Foxconn #Disruption

I enjoy reading Steve Greenfield's Automotive Ventures Intel report each week. This week was no exception, and I love when Automotive Service is covered! Automobile owners in the U.S. are holding on to their vehicles longer: the average age of U.S. cars and light trucks this year rose to a record 12.6 years, according to S&P Global Mobility, up by two months from 2023. S&P expects those aged six to 14 years or older to account for 70% of the vehicles in operation over the next five years. | Reuters This trend presents great opportunities for Dealers to win-back customers with mobile service and be there when a customer is thinking "fix" or "trade-in". It's happening :-) Let us help you meet your customers where they are! #mobileservice #automotiveservice #customerexperience #cx #Curbee

German Automotive Giants: Oil Tankers Headed for an Iceberg? 🫣 German companies like VW, Bosch, and ZF often justify slow innovation with the metaphor: “It takes time for an oil tanker to change direction.” But here’s the problem—what if there’s an iceberg ahead, and you don’t have miles to maneuver? This is the grim reality German automakers and suppliers are facing. For over a decade, experts have warned about the need for fundamental shifts: 1. Software-Centric Design: Moving from hardware-focused manufacturing to digital-first products. 2. Rapid Product Iteration: Cutting development cycles from 3-5 years to weeks or months. 3. User Experience: Competing with tech-driven designs that feel like “smartphones on wheels.” Despite these warnings, the industry has struggled to adapt. Now, the iceberg is here: • VW is battling EV stagnation and software delays, risking its competitive edge. • Bosch plans to cut 5,500 jobs, citing a slower-than-expected shift to electric and automated driving technologies. • ZF has announced up to 14,000 layoffs, focusing cuts in its electric drive division. The Fallout These companies risk following the path of Nokia, Kodak, and Blackberry—giants that couldn’t adapt to disruptive changes. The Numbers Don’t Lie 1. Bosch ↳ 5,500 job cuts by 2027. ↳ Hit hardest: Advanced driver assistance and automated driving divisions. 2. ZF Friedrichshafen ↳ Up to 14,000 jobs eliminated by 2028. ↳ Focus: Weak demand for electric vehicle components. 3. Volkswagen ↳ Factory closures and union unrest loom as EV sales falter. ↳ Mounting losses in China from faster, cheaper competitors. The Big Question Will these job cuts and restructuring efforts be enough to steer German automotive clear of disaster? Or will the iceberg sink more than just a single company? The entire industry is at a crossroads, and time is running out. What do you think—can these giants adapt, or is the iceberg too close? Let’s discuss. If you liked this post follow Lukas Timm for More insights and news. If you ever need help scaling your tech brand reach out in the DMs and check our scaletech . We take your tech brand from unknown to omnipresent in 90 days or less (including +100.000 impressions monthly and 3-5leads guaranteed)

Ah, do the automakers fall back on the lazy approach of bullying? Probably, if experience is anything to go by. As record profits are being boasted about, CEOs getting huge salaries and a cost of living crisis going on globally, squeezing those down the supply chain will come back to bite you.  Remeber what the suppliers did to Jepp when they demanded a price cut? Head of purchasing lost their job after the backlash.  There are ways to do this, if you think and are clever. Did you learn NOTHING from the semi conductor crisis? It appears so. 

This article from the Economist was written 1 year ago and imagined a Nokia scenario for Volkswagen. The rise of China as a major OEM producer changes the global market which needs to adjust to this new reality. Nothing will stop electrification of transport, and I am convinced the European OEMs who will be able to produce more affordable and innovative EV ecosystems (take the R5 for instance) will stay in the race. It is also critical for big EU countries to become Electrostates - producing batteries and providing/transporting vast amounts of cheap electricity. What if Germany stopped making cars? https://lnkd.in/eBXTdfPG from The Economist

Is Volkswagen’s massive scale a strength or a setback in the EV era? → Q3 Rundown: Volkswagen’s Q3 showed a 67% drop in earnings per share and a 21% decline in operating results over nine months—reflecting challenges in China, rising costs, and restructuring demands. → Asset: VW’s scale brings enormous resources, established supply chains, and a global footprint, enabling it to produce cars at volume and potentially keep costs down. → Liability: But scale also creates rigidity. VW’s vast structure makes rapid change difficult, and in the EV market—where speed and adaptability are crucial—this can be a disadvantage. → China’s EV Competition: In its largest market, China, VW is losing ground to local EV makers who can innovate faster and respond directly to local consumer demands. Scale hasn’t prevented VW from falling behind there. → High Cost of Transition: Moving to electric isn’t just about adding models; it’s about restructuring factories, shifting workforces, and shedding legacy costs—expenses that smaller, newer companies don’t face. They have a clean start. No baggage. My Take: VW’s scale is both an asset and a liability. It provides resources to compete globally but slows down its ability to respond quickly to the EV market’s demands. In a fast-paced, innovation-driven landscape, scale is starting to look like a double-edged sword… #AutomotiveIndustry

[NEWS] Stellantis is delaying the launch of the 2025 Ram 1500 REV: Why? CEO Carlos Tavares says it’s about perfecting the design and ensuring durability. Which may be true — but… Money is also a massive issue for Stellantis after profits slid 48% in Q1 + Q2 — and EVs aren’t bringing in revenues for many automakers outside of Tesla. Plus — following Trump’s election — the days of EV tax credits are numbered. Bottom line: Automaker expectations from earlier in the year are meeting the harsh realities of today’s market. Read today’s top automotive stories, presented by Dealer Pay, LLC: https://lnkd.in/eFQP3d2v (Data source: Detroit News)

This particular question is just going on my mind repeatedly because of how manufacturers are trying to handle this. Kind of funny too. How are automakers adapting to the chip shortage in their production strategies? Automakers are adapting to the chip shortage through various strategies: Feature Reduction: Manufacturers like BMW and Mercedes-Benz are removing non-essential features to conserve chips, allowing continued production. Prioritization of Models: Companies are focusing on higher-margin vehicles, reallocating chips from lower-priced models. General Motors, for instance, has prioritized premium models. In-House Production and Partnerships: Automakers are developing in-house chip capabilities or forming partnerships with semiconductor manufacturers. Ford's collaboration with GlobalFoundries is a prime example. Surplus Ordering: Automakers are ordering surplus chips to create a buffer against future shortages. These strategies aim to mitigate production disruptions and enhance supply chain resilience.

Recent reports about VW considering shutting down some of their German plants highlight the immense pressure manufacturers face in today’s rapidly evolving EV market. The ability to innovate and respond to market demands is more critical than ever. Technologies like SmartSpace from Ubisense enable manufacturers to be more agile and adaptive. By providing real-time visibility into operations and optimizing workflows, SmartSpace empowers teams to make faster, data-driven decisions. In a landscape where efficiency and responsiveness are paramount, these tools can be the difference between falling behind and leading the industry. #manufacturing #industry40 #SmartSpace #Ubisense #Operations360