Autonomous driving will revolutionise the automotive industry. It will reduce road accidents and deaths, cut traffic congestion, help tackle pollution, and increase productivity as drivers let technology take the strain. For producers the developments in autonomous driving are upending the business models of OEMs as new entrants from the technology sector pour billions into the automotive industry, creating a seismic and long-lasting shift in the market.
A few years ago a report from Goldman Sachs said the current regulatory framework was not set up to contemplate the legalities and liabilities associated with vehicles that drive themselves. Fast forward to 2018 and the regulatory environment remains just as unclear and complex with the absence of a clear regime for liability of an autonomous vehicle.
Precisely how OEMs match consumer needs with autonomous driving solutions, while overcoming public scepticism about relinquishing control of vehicles, remains a key question. Which business models will win in this new landscape?
Supply chain impact
Tier 1 suppliers also face a huge range of options and challenges in this new landscape. To become leaders in assistive and autonomous technology, Bain says suppliers will need to develop new capabilities
The fact that the Silicon Valley tech giants are entering the automotive supply chain is nothing short of a revolution for the automotive industry. Furthermore, leading internet groups from elsewhere in the world are also joining the party. Where the two camps meet will be critical. Parties on both sides are striking up non-exclusive relationships and collaborations, and over the past year we have seen a wave of announcements.
International automotive team
With a track record of over 255 transactions completed with a total value of €12bn, Clearwater International’s automotive team has developed unrivalled relationships with global OEMs, Tier 1 and 2 suppliers and financial sponsors. The common feature of all of our transactions is the in-depth market knowledge within our automotive team and our global reach that we can bring to bear.