Automotive Industry Look Like
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What does the future of the automotive industry look like s new technologies such as artificial intelligence A to B — will account for at least 30 percent of the market (AI), robotics, and the internet of things (IoT) come in Europe, concentrated at the lower-price end. In the US Aof age, the automotive industry is expected to face and Asia, an even greater proportion is expected. severe disruption. In the near future, given that people don’t want to be bogged down by vehicle ownership or # 2 | Impact of new technologies on the workforce maintenance, experts believe that vehicle production The size of the workforce on assembly lines and in body will split between mass-market, largely no-frills “cars on and paint shops will be halved because of automation and demand” that will be rented journey-by-journey and more the new types of vehicles being assembled. The number customized vehicles for those who still want to drive, or be of shop-floor logistics roles will be reduced by around 60 driven in, their own vehicle. percent, partially because humans will be replaced by autonomously guided vehicles. A high level of automation will be needed to produce both types of vehicles, and every process will be affected — in # 3 | New jobs and the need for new talent fact, the pressure on the workforce is expected to be severe. The number of data engineers required will almost double According to a new report by PwC, the industry workforce in some types of plants, and increase by 80 percent in will be cut by at least 50 percent by 2030, and employees others, while the number of software engineers needed who remain will need very different skills. Automakers must will rise by as much as 90 percent. These new jobs will become data managers and mobility service providers as help the industry make better use of the technologies at well as vehicle assemblers. The think tank studied the their disposal, reducing labor costs, operating expenses, technologies available and the shift in the personal mobility and other overheads — making sure they’re competitive in market and has made some key predictions for 2030: the digital age. In fact, PwC expects that the time required between R&D and the point of production will shrink from # 1 | New workflows, processes, and operations the current three to five years down to two years, to keep Standardized, shared vehicles — used simply to get from pace with technological changes. LAYOUT.indd 1 12/20/18 5:44 PM LAYOUT.indd 2 12/20/18 5:44 PM LAYOUT.indd 3 12/20/18 5:44 PM 4 After almost 30 years, the Lexus brand is a quiet success hen Toyota launched its brand-new Lexus segment sales for most of its career; and to the extent it has division from nothing in 1989, it dove deep right recently slipped a place or two (the Audi Q5 occupies the Wfrom the start. The 1990 Lexus LS400 full-size top spot), that's likely more a result of internal competition sedan was a cruise missile aimed straight at the European from its smaller sibling, the NX. prestige sedans that then represented the pinnacle of automotive engineering. It didn't fall short. The LS400 Sales are up was everything a large prestige sedan should be. Almost overnight, it established Lexus's credibility. And that cred Still, RX sales are up 17 per cent this year and a new RX-L would only grow with time, as consumers discovered the with three-row seating should bring further gains. The NX intangibles of Lexus ownership – the unique dealership currently ranks fifth in luxury SUV sales, and the CUV pair experience, the quiet reliability of the cars. are easily Lexus's top sellers. Its third-best seller, the IS Given the rarefied air of its market, the LS400 was never compact sport sedan, is an also-ran among its own peer expected to generate big sales numbers. The volume group, outsold three to one in Canada by the Mercedes would come with its co-debutant, the ES, and other more C-Class and more than two to one by both the Audi A4 mainstream models that joined the lineup over the years. and BMW 3 Series. The Lexus mid-size sedans, ES and Almost three decades later, Lexus currently fields 10 GS, rank 13th and ninth in their respective categories. distinct products and its street cred remains intact. "The ES has been one of their less inspired products," IHS Markit's Brinley noted. "But the RX and NX are doing well ‘A new benchmark’ and that's [in the segment] where people are shopping." In Canada, through October this year, it outsold both its And the LS? A bold new design arrives early next year and been successful." this year – up 12.8 per cent through October. "Lexus firmly fellow Japanese competitors, Acura and Infiniti, as well as should reignite interest in a nameplate that has become Brian Murphy, vice-president of research and editorial established itself as a luxury brand and now we're taking the Americans – Cadillac and Lincoln – and Volvo and virtually forgotten of late. Through October this year, the with vehicle valuation company Canadian Black Book, that even further, moving towards a luxury lifestyle brand Jaguar-Land Rover. The Germans, not so much. Overall, current LS – which dates back to 2006 – had racked up cites another measure of Lexus's success: "We see them with our new global branding." The new LC coupe, while Lexus ranks a fairly distant fourth in the luxury market, 39 sales in Canada while the segment-leading Mercedes as successful from the retained-value standpoint. This too exotic to ever be a big seller, is another image builder behind Mercedes-Benz, BMW and Audi (in that order). S-Class was up to 792. Of course, sales success isn't only year, seven of their vehicles finished in the top three in our for the brand, with its standout styling, rambunctious V8 So is Lexus a success? "Lexus set out to define a new about whether individual models outsell their segment CBB Best Retained Value award." So in the luxury market, performance and genuinely athletic handling. "It's going to experience in the luxury market and I think it achieved rivals. It's also a question of "being there." Currently, Lexus there's arguably more to success than just sales numbers. bring younger people to the brand. And we'll continue to that," Lexus Canada chief Jennifer Barron says. "It set a lacks an entry in the fast-growing category of subcompact But in fact, Lexus is a player in numbers, too. Don't be do that without losing sight of the importance of the guest new benchmark for the guest experience." CUVs such as the Audi A3 and Mercedes GLA. And its misled by its rankings in Canada. In the much larger US experience that always has been and always will be the "Certainly, Lexus is a success," concurs Stephanie Brinley, only sports car is the just-launched LC. The LC is key to market, Lexus has historically taken turns as the top-selling foundation of the brand," Barron said. senior analyst with IHS Markit. "It went from just an idea Lexus crafting itself a more dynamic image, but Brinley luxury brand. And when it's not on top it's usually in a very Meanwhile, the only Lexus that comes close to dominating to being a top luxury brand."Right now it's working to says it should be handled carefully. "As they instill more close contest with Mercedes-Benz and BMW in the top its segment in Canada is the RX (appropriately, it's the install more passion and excitement and looking to refine passion, one of the things to be careful of is not to alienate three. vehicle that invented the car-based luxury crossover its personality," Brinley adds. "But that's a reflection of the owners that do love their more quiet nature." As for Canada, Barron points out that Lexus sales are rising segment when it launched in 1997). The RX has led evolution over time and not an indication that it hasn't 10 million cars later, the Mustang is still a revelation he raw numbers behind the Ford Mustang are has been… but that’s not quite the case. The second was – and is – the Mustang. Even though it does engage People also love it because it’s a car that says something distracting, to say the least. Keeping the same iconic iteration lasted just five years after being hamstrung by a in them from time to time, in truth it’s above power wars. about them; something positive. Choosing a Mustang says Tnameplate for the last 54 years has meant that sales series of oil crises, while the third stab at the formula had It’s above perceived technical flaws. Most importantly it’s that you value freedom, fun and character over boring have naturally stacked up, but to reach 10 million is a to last some 15 years. Ouch. And yet the American public above petty criticism. Say what you like; it doesn’t matter. everyday concerns like having five doors and averaging huge, huge achievement for any car, let alone a pony car stood by it and carried on buying it. The Mustang is uniquely cool and always will be. Even the 50mpg. It says that you’re an interesting human, willing – or sports car, depending on which side of the Atlantic Why? Because the Mustang had already made its mark.