Study: Automotive Suppliers 2017 | Page 6

6 C) OEMs shift focus and further reduce their share of the value chain OUTLOOK OEMs CHANGE FOCUS In order to differentiate themselves, OEMs are forced to focus more on customer-centricity and less on car manufacturing. Reduced OEM presence in the production value chain creates opportunities for suppliers, but also entails serious challenges such as the need for dedicated process and software know-how. Customer experience and valueadding services replace traditional performance parameters (such as engine power) due to a reduced focus on driving itself and a greater focus on comfort while spending time in the car. PAST SHARE OF VALUE CHAIN FUTURE SHARE OF VALUE CHAIN CAR BODY ENGINE DRIVETRAIN CHASSIS INTERIOR ELECTRONICS 2005 Suppliers 2020 OEMs 2005 2020 2005 2020 2005 2020 2005 2020 2005 2020 EXAMPLES OF VALUE-ADDING SERVICES WITH POTENTIAL TO REPLACE TRADITIONAL PERFORMANCE PARAMETERS Driver health services Payment solutions Online car sales/customization Infotainment Parking Connectivity Cloud-based services Navigation Remote maintenance Source: goetzpartners analysis