Car OEMs / Suppliers and Insurance
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    Car OEMs / Suppliers and Insurance

    Car manufacturers face an increasingly challenging environment, due to

    • Slow market growth or even decline in developed economies ;
    • Competition and general price pressure on a global scale.

    While most would agree that within the next 10-15 years, cars will be connected, views on the best approach vary significanly.

    Which approach should be taken by Original Equipment Manufacturers (OEMs)?

    Most existing embedded systems are robust but already outdated in terms of features and content when they are launched, in particular when compared to retail solutions (PNDs).

    Major challenges for car vendors therefore include

    1. How to be on a par with leading retail consumer electronics (CE) navigation solutions?

    • How to avoid lagging behind in features and content?
    • How to facilitate the upgradeability of the system in the mid-term to avoid obsolescence within 3 years?
    • How to open the system whilst keeping control to guarantee overall reliability and quality?
    • What is the smartest sourcing strategy for the platform, content and services? What should be the role of tier-1 suppliers?
    • How to keep internal development and maintenance costs under control?

    2. What is the optimal value proposition to entry-level, medium and high-end car buyers?

    • Should the navigation system be embedded such as BMW’s Connected Drive, semi-integrated such as Fujitsu’s Eclipse or removable like a PND?
    • Should car OEMs aggregate content and services? If not, who should? How to guarantee automotive-grade useability?
    • What is the ideal interface with the mobile phone?
    • In particular, should price erosion be accepted or prevented? Should there be a price premium for embedded systems?
    • Should content (e.g. maps) be included or subject to a subscription?

    Our experience in this field.