Tesla on top in latest innovation study – automotive insights

CAM says innovation leaders tend to also gain the biggest shares of the growing EV market (Image: CAM)

Tesla on top in latest innovation study

April 14, 2022April 22, 2022

by Arjen Bongard

Tesla again leads the rankings in a new study on the innovation strengths major carmakers display in the area of battery-electric vehicles. Volkswagen Group came in second, followed by Hyundai in third place.

The study conducted by Germany’s Center of Automotive Management (CAM) took a close look at more than 700 individual innovations that are finding their way into electric vehickes today.

China’s BYD and Geely ended up in fourth and fifth place, respectively, followed by Stellantis, SAIC, BMW, Mercedes-Benz and General Motors.

CAM Director Stefan Bratzel said carmakers that are out front in electric-vehicle innovation also tend to be market leaders in the growing electric mobility segments. “That is the case for Tesla as well as for Chinese car manufacturers,” Bratzel said in a statement.

Electrification is having a major impact on the global auto industry and the roles that have long been played by the biggest car brands, Bratzel said. “In the era of electric mobility the traditional structure of the industry and the ranking of car manufacturers is increasingly undergoing changes.”

Tesla scored points with a software update that boosted the range of its Model 3 to 614 km from 580 km, CAM said. Within the Volkswagen Group, CAM cited a new feature in the all-wheel-drive Taycan model that allows for the switching off of the front electric motor to conserve power.

Hyundai’s premium brand Genesis registered best-in class performance with a high-speed 350 kw charging function. Fourth-place BYD was cited for a new lithium-iron phosphate battery, while Geely, in fifth place, was boosted by its Zeekr and Polestar electric brands. The Zeekr 01 claims a range of 712 km, while the Polestar 2 introduced over-the-air updates and a single engine variant with lower energy consumption.

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Growing questions over supply chains and just-in-time manufacturing

(April 15, 2022) The Covid-19 pandemic, the war in Ukraine and the current semiconductor shortage is forcing a rethink of long established practices in the global automotive industry. Specifically, just-in-time (JIT) manufacturing and lengthy, complex cross-border supply chains are likely to change as car manufacturers and suppliers prepared for new major shocks in the future.

“Long supply chains expose companies to vulnerabilities,” said David Bailey, professor of business economics at the UK’s Birmingham Business School. Speaking during an online discussion hosted by British car magazine Autocar, he cited as “inevitable” that car companies will, in future, acquire components and parts closer to home. Companies will also make sure they don’t rely on just one supplier for a particular part, he said.

Stephen Norman, a veteran auto industry executive and most recently head of Vauxhall Motors, agreed. “Re-shoring is massive and it will be the first time I have seen it taking place,” he said. Norman cited the semiconductor supply chain, which crosses borders multiple times, as a case in point.

David Brickhill, CEO of aftermarket provider Klarius, said Brexit has aggravated supply chain problems for companies located in the UK. “A number of challenges have gotten in the way of just-in-time and force manufacturers like us to hold more inventory.” He warned that “building high inventories comes with huge costs and ultimately affects profits.”

Birmingham Business School’s Bailey said car companies will in-source more systems to boost their self-reliance. “The balance is about to shift between make and buy,” he said. And he added that, to distribute risk more widely, there will be an increase in collaboration pacts between industry players.

CAM sees record earnings year for global car industry

(Nov. 5, 2021) Global automakers greatly improved their nine-month pretax earnings compared with 2020 and many even matched or exceeded profits made in 2019, the year before the Corona pandemic kicked in. Car companies’ individual financial performance varies greatly, but a study by Germany’s Center of Automotive Management (CAM) predicts that 2021 will be a record earnings year, despite widespread shortages of semiconductors and raw materials. Those shortages are a major factor in automakers’ moves toward more expensive, higher margin vehicles. At the same time, CAM says, auto manufacturers’ costs are dropping because high customer demand has allowed them to greatly reduce buying incentives. “The automotive industry is currently showing contradictory trends,” says CAM director Stefan Bratzel. “On the one hand, production and sales are stagnating as a result of the chip crisis and the shortage of raw materials. On the other, manufacturers can demand high prices for their new and used cars, which for some results in double-digit profit margins.” Among major industry players, carmakers BMW, Stellantis and Tesla posted the highest profit margins in the first nine months of the year, while Volkswagen Group, Hyundai and Renault were at the lower end of the profitability scale.

IHS Markit: Chip shortage to continue in Q3

The auto industry will continue to face disruption from chip shortages in the third quarter, IHS Markit says. But the impact is likely to be less severe than earlier. “We expect an improvement from the first or second quarter because the situation is becoming better understood and great efforts are being made to enhance visibility within a very complex supply chain,” the market researchers say.