Universidad Tecnológica de El Salvador
The Auto Industry’s Real Challenge
Article

The Auto Industry’s Real Challenge

While automakers pour millions into winning the autonomous vehicle race, they run the risk of ignoring the more imminent threats that could sink them before the technology becomes pervasive.

Evan Hirsh, John Jullens and Ganesh Kalpundi
Strategy+business, 2016
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Editorial Rating

7

Qualities

  • Analytical
  • Applicable
  • Well Structured

Recommendation

Heavy investment in autonomous vehicle (AV) development may be blinding American automakers to more imminent, threatening challenges. PwC advisers Evan Hirsh, John Jullens and Ganesh Kalpundi explain why automakers must think beyond AV technology and focus on present obstacles – such as “increasingly restrictive emissions and fuel-consumption requirements.” Furthermore, the authors offer practical solutions for how automakers can successfully overcome these hurdles. getAbstract recommends this report to auto industry executives and strategists.

Summary

US automakers are investing heavily in the development of autonomous vehicle (AV) technology in the hopes of cashing in on a new segment of the auto market sometime in the next five to ten years. However, problems with existing semiautonomous technology suggest that the advent of fully autonomous vehicles may not happen anytime soon. Moreover, the intense focus on AVs distracts automakers from the more immediate challenges facing the industry.

The main obstacle automakers must overcome in the near future involves...

About the Authors

Evan Hirsh and Ganesh Kalpundi are executive advisers and John Jullens is the emerging markets leader for PwC’s strategy consulting business Strategy&.

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