We Should not Miss the Real Transformation of the Automotive Industry

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In a time where everyone is focused on electrification—with China seen as both a catalyst and a threat—contradicting messages from OEMs, observers, and customers are swirling around. But aren’t we missing the point? Of course the road to electrification is important but isn’t the real transformation in the mobility system itself? Hasn’t China already transitioned into the next chapter, where high-tech and car players are collaborating in “stealth mode” to develop a new generation of transportation, much like it did with electric vehicles, batteries, photovoltaics, and other technologies it now dominates? It achieved without any publicity, its peak CO2 in 2023 seven years ahead the target date it had set in 2020 and is installing more zero carbon electricity generation every year than the rest of the world combined!

The automotive industry is undergoing a transformation unlike anything seen before. The scope, scale, and speed of this change are setting new benchmarks for industries across the globe. This evolution is not just about the transition from internal combustion engines to electric vehicles or the integration of cutting-edge technologies like autonomous driving even around SDV architecture; it is a complete reimagining of what mobility means in the 21st century.?

The Efficiency Imperative

One of the most striking aspects of this transformation is the focus on efficiency. Consider this: a car seat is used on average only 1% of the time, yet the car itself represents one of the most resource-intensive modes of transportation. In a world increasingly aware of the need for sustainability, this inefficiency is no longer acceptable. The future of mobility will be characterized by smarter use of resources, where every aspect of transportation is optimized to meet the needs of both people and the planet.

A New Vision for Mobility

At the heart of this transformation is a new vision for mobility. We are moving from a world where car ownership was a symbol of freedom to one where the car is just one element, still with an important role, of a broader, interconnected ecosystem of transportation solutions. This new paradigm places the user at the center, offering personalized, efficient, and sustainable options for getting from point A to point B.

The Trigger of Shared Mobility: Self-Driving Technologies

One of the key enablers of this new mobility landscape is self-driving technology. Autonomous vehicles are the catalyst that will unlock the full potential of shared mobility. Imagine a world where the right vehicle, optimized for your current needs, is available at the right time and in the right place. These vehicles will not only transport you from one location to another but will also transform your travel time into an enjoyable and productive experience and they will work in harmony with public transportation creating a new continuum of convenient, smart and clean mobility. In essence, self-driving technologies promise more freedom, enhanced sustainability, and reduced costs—all while delivering a higher quality of life for users.

Harnessing the Best of Both Worlds

In this rapidly changing landscape, I believe in combining the strengths of big organizations with the agility and creativity of startups. Big organizations bring a top-down vision, extensive resources, and the ability to scale solutions globally. On the other hand, startups offer bottom-up creativity, speed, and the freedom to innovate without the constraints often found in larger entities. By fostering a culture in new open innovation ecosystems that leverages both approaches, we can create a world where innovation thrives, and new ideas are brought to life with unprecedented speed and efficiency.

As Machiavelli said, “If something is unavoidable, you’d better want it.” Denial is not an option for those who want to survive in this rapidly changing industry. We must embrace these changes and drive them forward with purpose and determination.

Looking Ahead

?As we navigate this new era, it’s clear that the future of the automotive industry will be shaped by those who can adapt to these changes with vision, creativity, and a commitment to sustainable practices. Self-driving technologies, in particular, are set to play a pivotal role in this transformation, driving us towards a future of shared mobility that offers more freedom, greater sustainability, and lower costs.

To paraphrase what Lou Gerstner, ex-boss of IBM, said, “People should do what you expect, not what you inspect.” The road ahead is challenging, but it is also filled with opportunities for those ready to embrace this unprecedented transformation with the right mindset and strategic vision. We should first target the next step of this transformation, not only the train that has already gone.

Guillaume Gerondeau GG

I have spent my entire career—so far—around mobility, developing leading innovations at three OEMs and in the software industry, as well as co-leading an ecosystem of open innovations. I am committed to advocating for a human-centric, sustainable, and safe mobility future. This article reflects my personal opinions only.