How to overcome five myths that are distracting your auto company

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Overview

Huge upheavals in the look, feel, propulsion and technology of automobiles, both existing and predicted, have created a deep well of uncertainty. Certainly, major changes are coming to the industry, but not as quickly as many would have us believe. We’ve identified five myths that have gained credence and have served to potentially misdirect auto OEMs.

In our view, auto companies need to turn a measured eye to these myths and reclaim their tactical advantage by focusing more directly on strategic frameworks that can keep them on the right path in the current environment and simultaneously build on their capabilities, corporate identity, and culture to prepare for the future.

The five myths

Each of these myths contains kernels of truth and raises real potential difficulties, but the industry has oversubscribed to them. 

  1. Electric vehicle sales will surge within the next few years. 
  2. A landscape dominated by fully autonomous vehicles is on the near horizon. 
  3. The ride-sharing phenomenon will transform the industry and facilitate the transition to the fully autonomous era. 
  4. Traditional OEMs and suppliers face an existential threat from new competitors. 
  5. Automakers can thwart competition and bolster revenues via downstream integration, such as owning ride-sharing businesses or providing connectivity services.

How PwC can help

PwC's global automotive practice is immersed in a wide range of complex issues affecting your industry. Our deep knowledge and experience goes beyond audit, assurance and tax. We also specialize in providing counsel in such areas as digital, mobility, M&A, regulation and compliance, workforce development, supply chain, cost reduction and cybersecurity. Our aim is to align your aspirations with our world-class capabilities to help achieve your goals.

One of our practice's key competitive advantages is Autofacts®, a team of automotive industry specialists dedicated to ongoing analysis of sector trends.

You can also visit our Global Automotive practice webpage for insights tailored to your region.

Contact us

Ray Telang
Automotive Leader, PwC US
Tel: +1 (313) 394 6738
Email

Evan Hirsh
US Automotive Advisory Leader, PwC US
Tel: +1 (312) 578 4725
Email

Reid Wilk
Principal, PwC US
Tel: +1 (248) 872 6792
Email

Rich Parkin
Partner, PwC UK, PwC US
Tel: (+44) 790 016 3731
Email

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