Future of mobility will fuel consolidation in automotive industry, says KPMG
The rate of consolidation and mergers between automotive giants is going to ramp up over the next five to 10 years, according to KPMG.
Charlie Simpson, KPMG partner and head of mobility 2030, will be speaking at the Fleet Mobility Conference on November 5 at the Park Plaza Westminster Bridge London and said he is predicting the 23 global car manufacturers (excluding those in China) to reduce to around 10 major global mobility platforms within the next 10 years.
This reduction will be in the form of mergers and strategic collaborations, but could also be in the form of business failures as the competition in the mobility space forces certain players out of the market.
Simpson said: “We’ll see co-operations on a larger scale between manufacturers, tech companies, banks and service providers as we start to move away from the concept of individual ownership.”
Simpson’s session will assess the opportunities for leasing companies, suppliers and manufacturers in this new mobility landscape.
This will include an overview of what new business models, products and services are likely to provide future business growth and how companies should prepare for the changes to come.
The Fleet Mobility Conference will provide unique insight into the trends, developments and challenges that affect the way businesses move their people, goods and services around the UK, with expert conference sessions throughout the day.
Simpson said: “We will see more collaborations across industries and we’re already seeing this with BMW and Daimler co operating on mobility.
“Some of the interesting questions that arise when looking at this switch to monthly subscriptions is who is going to own these fleets of vehicles? Where do manufacturers, as well as leasing and rental companies sit in the value chain and who ends up owning the customer? Who will have the right capability to be customer facing?
“Will manufacturers stay in the role of just manufacturing the vehicles and then partnering with a tech company, car retailer or service provider like a company like Virgin to bundle the mobility subscriptions? Or will manufacturers do it all themselves? These are all areas I’ll be discussing in my presentation.”