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Reshuffling the Global Automotive Leadership
During this period of change in the global automotive industry, a new group of
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innovative leaders will emerge who create “adaptive” automotive companies.
The global automotive industry has
been and continues to be in a period
of wrenching change. Intense price
pressures and stagnant share prices
are resulting from more powerful
customers and major industry
overcapacity. In addition, easy access
to cost information provides the
customer with new leverage in
negotiating with dealers. These facts,
combined with volatile economic
cycles, will result in the shakeout of
weak and unresponsive automotive
OEMs, a reshuffling of the global
market share leaderboard, and changes
at the CXO level in those companies
that lag the competition. In their place
will emerge a new group of innovative
leaders who create a new kind of
“adaptive” automotive company.
Research by the CGE&Y Center for
Automotive Excellence has determined
that many global OEMs have already
begun the process to create this
adaptive automotive enterprise. This
movement is counter to the traditional
“push” manufacturing system made
famous by Henry Ford and
perpetuated by most OEMs. The
adaptive automotive enterprise
replaces the old push system with a
new customer-pull system and an
organization that allows the extended
enterprise to sense actual customer
demand in near real-time, then rapidly
respond to this demand in an
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