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Online Sales in the Automotive Industry

How can the internet become a successful sales channel for the automotive industry?

The role of online sales channels is gaining increasing importance for the automotive industry. The OEMs need to integrate this channel in their sales concepts as a full-fledged option – meaning that the limitation as an information instrument needs to be overcome: the OEMs need to decide for each product if, and which part, of the sales process should be covered by the online channel.

We have recently completed a comprehensive customer survey analyzing the internet as a sales channel in automotive business. To validate demand and identify critical success factors and requirements for online customers, approx. 1,000 survey results were collected from customers from Germany, China and the USA.

To successfully develop the online sales channel six actions should be considered by the OEMs:

1. Align product portfolio to online and offline sales channels
2. Establish a digital sales ecosystem for true multichannel retail
3. Gain support of the dealer network
4. Offer a clear benefit
5. Educate the customer
6. Reduce commercial risk

Released: August 2012

Download File ADL_AMG_Online_Sales.pdf (.PDF, 535 Kb)

The Connected Car – Finally Coming True?

How OEMs Overcome Startup Hurdles and Achieve Competitive Advantage

The vision of the “connected car” or more general “connected vehicle” has been around for some time without significant impact in the industry. Today however, the mobile internet is growing in importance and the topic is back on the agenda of the OEMs – but despite a more standardized and capable infrastructure, the key questions remain the same: What are the most relevant services for customers, OEMs, and other service providers such as banks and insurance companies? How to position and manage this complex ecosystem? And finally: How to generate revenues through ”connected vehicle” services?

Released: February 2012

Download File ADL_AMG_2012_Connected_Car.pdf (.PDF, 966 Kb)

The Future of Urban Mobility

Towards networked, multimodal cities of 2050

Management consultancy Arthur D. Little’s new global study of urban mobility assesses the mobility maturity and performance of 66 cities worldwide and finds most not just falling well short of best practice but in a state of crisis. Indeed it is not putting it too strongly to say that many cities’ mobility systems are standing on a burning platform and if action is not taken in the very near future they will play a major role in slowing the growth and development of their host nations.

Released: October 2011

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Download File ADL_Future_of_urban_mobility.pdf (.PDF, 2.6 MB)

China’s Automotive Market

A Bumpy Ride Ahead? – How automotive OEMs can plan for a smoother journey

China has become one of the most important markets in the world for the automotive industry. Multinational companies have identified significant business opportunities but are they fully aware of the challenges and risks associated with the Chinese market? Based on in-depth market insight and a long track record of delivering strategic projects for major automotive companies in China, Arthur D. Little assesses the outlook for the Chinese automotive market and identifies five key topics that should be on the CEO agenda for any international automotive OEM doing business in China.

Released: September 2011

Download File ADL_AMG_2011_Chinas_Automotive_Market.pdf (.PDF, 854 Kb)

Captive Auto Insurances

An Untapped Downstream Profit Potential for Car Manufacturers

Parts and service are the largest profit generators for car manufacturers. This substantial  business has attracted independent low-cost repair shop networks, which have increasingly become preferred suppliers to insurers trying to keep costs down. OEMs have started to counter this business drainage by introducing own-label insurance products, but the results so far leave room for improvement.

Released: November 2010

Download File ADL_Captive_Auto_Insurance.pdf (.PDF, 558 Kb)

Strategic Options in the Fleet Service Market

Confronting Risk and Seizing Opportunity in an Evolving Market

Business customers account for almost 50% of the passenger car fleet in Europe, but after-sales service to these customers is generally neglected by major market players. However, declining residual values and the need for cost savings are reshaping the after-sales business. Here we highlight the emerging opportunity in fleet service and identify the key questions each player needs to address.

Released: October 2010

Download File ADL_Strategic_Options_in_the_Fleet.pdf (.PDF, 811 Kb)

Winning on the E-mobility Playing Field

How to avoid a "red" business case for "green" vehicles

In the middle of the current automotive crisis, everyone seems to be electrified. Most OEMs are investing significantly in developing e-technology and governments are rolling out plans to subsidize e-mobility. At the same time, the development of adequate business models is receiving little attention. Which business models are viable on this new e-mobility playing field?

Released: May 2010

Download File ADL_E-Mobility_02.pdf (.PDF, 469 Kb)

Shifting Centers of Gravity

The End of the Automotive Industry As We Know It?

The global automotive industry is set to become a fascinating battleground over the next ten years as established OEMs from the triad markets wrestle with challenger OEMs from emerging markets. This report by Arthur D. Little identifies some of the strategies that emerging challenger OEMs will adopt and the key battles established triad OEM champions will face.

Released: July 2009

Download File ADL_Shifting_Centers_of_Gravity.pdf (.PDF, 892 Kb)

Powertrain at the Crossroads

Mapping the Future for the Global Bus and Truck Industry

The late impact of the global financial crisis on the truck and bus industry has been profound. However, other forces - equally powerful but currently attracting less attention - are also driving significant changes in the powertrain industry. These forces will fundamentally change the rules of the game for players in the truck and bus industry, affecting OEMs, dealers and suppliers alike. As the transformation taking place in the passenger car industry shows, the changes now happening are so great that they may reshape the industrial structure of countries that are heavily dependent on the commercial vehicle industry.

Released: June 2009

Download File ADL_Powertrain.pdf (.PDF, 1.3 MB)

Dealer Risk Assessment and Contingency Plan Development

How to evaluate and mitigate dealers’ risk of bankruptcy in order to minimize the impact on sales volume

For a longer period of time car dealers have been struggling with diminishing profitability figures due to increasing operational cost and strong competition. But now the financial crisis and the credit crunch take their toll on automotive retailers even more all over the world. For example, the level of dealer bankruptcies skyrocked from a 200 dealerships plateau up to 900 business failures per year in the USA in 2008. Dealer insolvencies directly translate into increasing risks in terms of sales volume to the car manufacturers. Therefore, systematically assessing this risk is key and the first move towards taking appropriate countermeasures that help the dealers to keep their business operations. For this purpose Arthur D. Little has developed the so-called Dealer Risk Assessment.

Released: May 2009

Download File ADL_Dealer_Risk_Assessment.pdf (.PDF, 762 Kb)