I've spent the past couple of days at the Reuters Automotive USA conference here in Detroit — a gathering of industry decision-makers, managers, and media. The dominant theme running through the whole event: the central role people play in the entire automotive value chain, from innovation and engineering through production and adoption.
The need to be human-centred has long been a cornerstone of Rob Ferrone's — and QR_'s — PDM philosophy, and it rang through in several conference sessions and conversations. On a midday panel with Gail Robertson, Leonel Leal, and Robert A. Walus, I had the chance to speak about the QR_ approach to product data management. As technically thorough as that approach is, it entirely hinges on people.
While a company works to improve the source, flow, availability, speed, and effectiveness of its data, genuinely effective PDM implementations come down to how well you take the organisation on a shared journey to better engineering outcomes — rather than simply doing something to the organisation.
Seven brief observations from the conference, each illustrating how industry transformation is a people-centric process.
1) EV vs hybrid
Electric vehicles and hybrid-electric vehicles have been making inroads in global markets for several years. Penetration is still relatively low in the US market, but momentum has clearly been sparked by the availability of new models alongside other factors. Which technology wins out — and when — is the subject of genuine industry disagreement.
Ford CEO Jim Farley recently projected big gains for hybrids, while others see a tipping point on the horizon for pure EV market share. Customers will ultimately decide. In light of the current demand curve and the fate of past infrastructure-scaling efforts like Electrify America, one key question is whether to adjust the timing of massive battery investments to better match demand.
2) Value creation for customers
The traditional dealership upsell model is poised to change. A shift is underway toward a more Tesla-like framework — where cars are sold at cost and additional options are monetised through software. Given growing consumer comfort with subscriptions and over-the-air purchases, it's easy to see this evolution landing. But the industry won't get there overnight.
Interim steps could include the battery-as-a-service model pitched by Nio. That raises the possibility of designing vehicles for rapid battery removal — which would in turn change the way warranty is implemented.
3) Charging strategies
Is the charging model going to lean on a network of sites, or will it be largely home-based? That question will take time to resolve — but in the meantime, the industry needs to ensure the infrastructure is both in place and reliably working.
OEM collaborations such as Tesla's partnerships with several rival manufacturers will be key to hitting the scale and growth needed in an economically sustainable way. Public utilities also have a pivotal role. There's a real benefit to home charging: it avoids the need for early-morning or late-night trips to a charging facility.
4) Customer adoption rate
Much like the proliferation of smartphones a decade-plus ago, the job of exposing people to a major technology shift is critical. Roughly 15 million new vehicles are sold annually in the US, and hundreds of millions more are in operation on the road. Nearly all of them are powered by internal combustion engines.
So there's a curve by which people need to adapt to new ways of living with EVs. Range anxiety and charging anxiety are a good illustration — the concern EV drivers have about their battery level and their ability to find a charger. Companies need to bring the whole community on the journey. One way to make immediate strides is ensuring charger-grid connectivity is solidified, and driving greater awareness of what's available where.
5) Cross-industry inspiration
Related ecosystems for the automotive industry to model after, or collaborate with, are plentiful. Buying habits, ownership models, distribution systems, and value chains are evolving in several other industries — gaming, retail, and entertainment among them.
There's ample opportunity for those ecosystems to collaborate as vehicles become more like smartphones on wheels — interacting with the world around them and the needs of drivers. Automakers can help open new marketplaces and be a key beneficiary as they develop.
6) Harnessing tech advancements
The entire supply chain is ripe for tech advancement — but it can't be done in silos. Industry collaboration is required to drive innovation at pace. No one has limitless resources.
Business model will be king. The old way of doing things has been shown to be insufficient: geopolitics, the pandemic, parts shortages, and inflation have all disrupted supply chains. At the same time, decarbonisation is an increasing focus across every source of emissions — vehicles, facilities, suppliers — and attention on materials (batteries, steel, aluminium, plastics) is sharpening. Demand for these materials will rise, not least as battery utilisation increases.
7) Workforce re-tooling and re-skilling
Last but certainly not least: there's an urgent need to focus on education and re-education to ensure people are prepared for the future world of work. Not only are there needs for different skills — there are needs for entirely new jobs versus what has been done in the past.
While certain industries have increased their emphasis on workforce wellbeing, particularly post-pandemic, there needs to be more attention paid to the readiness of workers to compete and thrive in an entirely new economy.
