Can the Auto Industry Keep Up With the Future?

By Dennis Cuneo

What does the “car of the future” look like?

The short of it is, we don’t really know

But we have some ideas. These days, the trend is leaning towards cars all being connected to some sort of a digital “cloud”.

According to a recent report from consultancy firm AlixPartners, moving towards this future could prove difficult for automakers while they face pressure on their profit margins as tech demands grow and car sales slow in major markets.

In the report, AlixPartners coined the acronym CASE, which stands for “connected, autonomous, shared and electric” and is used to refer to the bundle of technologies necessary for car companies to adopt if they want to remain relevant in the industry.

And if the report is to be believed, few automakers are prepared to lead in all four fields…

What to do?According to AlixPartners, there are options for the car companies to adapt, such as partnerships and developing in-house technologies. !Are they already on the way? According to the report from AlixPartners, there already exists: • 9 arrangements in the industry where one car company owns

equity in another • 16 join ventures • 17 assembly alliances • 15 technical alliances !These arrangements have becoming more and more common, such as Toyota’s technical “marriage” with Mazda, and Volkswagen’s 2012 purchase of Porsche.