Automakers have very little time – maybe as little as 5 years – to reposition themselves to meet today’s market needs. They need to develop an integrated EV supply chain. And they also need to follow Stellantis’ lead and go back to selling affordable cars costing €25k.
Chemicals and the Economy
Gasoline/diesel cars are now less than 50% of European sales as EVs and hybrids surge
These paradigm shifts are coming at the same time as the loss of the peace and demographic dividends. They are taking our world in a new direction. The likely Winners will be those companies and investors who focus on becoming demand-led.
Companies must be bold and transform, as paradigm shifts reshape the business world
The paradigm shifts are already starting to impact most businesses. China is also changing, and will no longer power global growth. So there are no ‘Business as Usual’ options for the future. Instead, companies have to develop new business models for today’s New Normal world.
The next car you buy will probably be Electric, and you may not need to buy another
As the photos from New York in 1900 and 1913 remind us, transitions happen very quickly once they get underway. One day, we are saying “it will never happen”. The next, we are telling our friends “I can’t understand why it took so long”. So it seems safe to assume that the auto industry will see major change in the next few years.
Global auto fleet goes electric as “the electrification of everything” begins
The ‘digitalization of everything’ has transformed the global economy over the past 30 years. The rise of the internet is just one example. Now electrification is set to have a similar impact, starting with the world’s largest manufacturing industry. Fasten your seatbelts for the ride!
The car market is crashing
Winners and Losers are becoming inevitable in the world’s largest manufacturing industry. Companies and their suppliers have to manage fixed costs to survive the recession. But they also have to invest in EV/AVs if they want to have a business in the future.
Europe’s plastics companies need to step up the pace on recycling if they want to stay in business
Europe’s plastic industry is at a critical turning point. Profitability is falling as the recession bites. But it cannot just cut back and hunker down. Instead, it has to take a lead in building major new recycling capacity as today’s markets and feedstocks start to disappear.
Automakers, governments, start to prepare for the launch of Autonomous Vehicles
Automakers are ahead of the game in terms of strategic planning. They soon realised the move to EVs meant their traditional business model, based on proprietary engine technology, would inevitably become obsolete. And so they quickly realised they need to pivot to focus on AVs and become software-driven. The rest of us need to catch up.
Batttery swapping at service stations set to overcome ‘range anxiety’ for Electric Vehicles
BP are aiming for their new joint venture in China to provide drivers with a fresh, fully-charged battery in less than a minute – and save 2 million tonnes of CO2
Chart of the Year – the surge in Electric Vehicle sales will disrupt auto, oil and petrochemical markets
The implications of the rise in EV sales go well beyond the auto and oil markets, with petrochemicals likely to be next in line for disruption. This is why the surge in EV sales up the S-curve of adoption has to be my Chart of the Year.