The automotive industry has an enviable track record in creating efficient and effective ‘build and sell’ operational processes. Yet at a time of changing automotive technology and a shifting expectation of car usage and acquisition, especially in younger generations, the temptation to focus exclusively on highly effective operational processes risks undermining customer experience and brand loyalty. A number of vehicle manufacturers have achieved pockets of innovation – from car rental apps to groundbreaking warranty replacement promises and the delivery of a consistent dealer experience for customers. Yet the siloed nature of automotive companies continues to constrain both the pace and scale of change. From parts replacement to efficient fleet operations, why are areas of best practice not deployed consistently across the globe? Why are VMs not actively looking beyond traditional competencies and revenue streams to embrace new opportunities, such as monetising the huge volumes of telematics data they own? Efficient operational models are no longer enough. VMs need to reconsider brand loyalty, using new levels of service and commitment to transform the customer experience – and they need to do it at scale. Fundamental industry change The automotive industry’s track record in production innovation is unmatched. But facing the most radical cultural change in decades, VMs are moving fast towards a very different operational model that will, by default, demand a strategic expansion from the traditional focus on ‘build and sell’ processes. From the underpinning automotive technology to acquisition and financing, even the structure of sales and Aftersales models, the future shape of the industry remains up for debate. While electrification appears to 58 AFTERMARKET MAY 2024 BUSINESS www.aftermarketonline.net UNLOCKING POTENTIAL As automotive technology develops and car usage changes, does the sector need to radically rethink its offering? BY Alan Glazier, Commercial Director, One Nexus
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