This increased share of renewable energies (wind, solar and hydro) also necessitates temporary storage of electric energy to stabilize the electric grid. A prominent and cost-effective way to increase storage capacity drastically and thereby stabilize energy supply is the integration of electric car batteries into the electricity grid. The method to not only charge car batteries from the electric grid, but also supply energy back from the car to households or factories through grid is known as V2G (vehicle to grid).

V2G serves as an alternative to other grid stabilization options such as pumped storage power plants, with few suitable locations left, or the significantly more expensive stationary battery storage. In the long run, commercial returns from V2G can reduce the total cost of ownership of an EV through reduction in charging and overall electricity bill.

The V2G score corresponds to the readiness of a country to utilize V2G potential. The most significant factors for the same are smart meter rollout (to enable bidirectional energy flow between EVs and grid) and share of V2G capable EVs in the fleet. The study shows that the V2G potential in most countries is not limited by smart meter roll-out, but the amount of available V2G capable vehicles. It also strikingly shows that Germany is significantly behind the leading nations in terms of V2G readiness. This is mainly due to a very low smart meter rollout in the country so far (around 1% of all household are equipped with a smart meter currently). The smart meter rollout in Germany was slowed down in the past by regulatory uncertainties and a lack of dynamic electricity pricing models requiring the smart meters. In the beginning of 2023, a new law came into place requiring a 95% smart meter rollout by 2032.

So far V2G has only been demonstrated through pilot projects and studies. For unleashing its true potential, both electrical and electric vehicle (EV) infrastructure of a country plays a prominent role. For example the amount of required charging points is increased, as vehicles serving as grid stabilizers block the charging point for this time.

If you want to discuss the opportunities and challenges that come with V2G, please feel free to contact Dr. Alexander Timmer.

In the following insight report, we want to explore this rat race in greater detail and provide an outlook for 2024, including the challenges that lie ahead as well as the focal points of foreign OEMs in the highly complex Chinese market.

• Berylls-Rück- und Ausblick auf die Zuliefererbranche: 2024 wird erneut ein herausforderndes Jahr.

• Die ersten drei Quartale 2023 waren eine Phase der Zuwächse bei den weltweit größten Zulieferern, Umsatz und Marge stiegen teilweise signifikant. Bereits in Q4 2023 trübten sich die Bedingungen ein, dieser Trend wird 2024 fortbestehen.

• China bleibt größter Fahrzeugmarkt, aber bedingt durch die Währungsschwäche, die zunehmende Komplexität der Beziehungen zu China und Entscheidungsfindungen vor Ort, bekommt das positive Bild Risse.

• Osteuropas Bedeutung für die Automobilindustrie ist hoch und wird weiterwachsen.

• Steigende Lohnkosten in der Region und geopolitische Risiken, machen Standortentscheidungen zu Osteuropas Gunsten, jedoch zunehmend schwieriger.

• Berylls-Experten sehen wachsende Relevanz von Zulieferer-Produktionsstandorten in Nordafrika.

Discover the transformation in long-haul trucking with electrification. Industry leaders must embrace unique services for a competitive edge. Our latest insight highlights these changes and emphasizes the urgency to act for success in a dynamic industry environment.

• Berylls-Experten erwarten, dass die deutsche Automobilproduktion in den nächsten Jahren deutlich stärker wächst als das BIP. Das Wachstum generiert Tesla, nicht die deutschen OEMs.
• Die Abhängigkeit vom Premiumsektor und die Gefahr für Produktionsverlagerungen ins Ausland, sind Risikofaktoren für das Wachstum.
• Im Vergleich zu den aktuellen Stückzahlenprognosen bis 2030 erwartet Berylls im Idealfall einen weiteren Anstieg von 13 Prozent. 
• Stellen sich die erwarteten positiven Effekte nicht ein und sinkt das Volumen, kann im Worst Case mit einem negativen Effekt auf das BIP von knapp zwei Prozent gerechnet werden.
• Die Weichen in der Automobilproduktion müssen heute in die richtige Richtung gestellt werden, die Entbürokratisierung gehört zwingend dazu.

The industry is undergoing massive changes that go beyond new drive concepts and designs and lead to a reorganization of brands and market shares in Europe and worldwide. The uncertainty in the German automotive and supplier industry is noticeable, and managers must actively shape the transformation to remain competitive. 

In the midst of transformation processes towards electric drives, agile supply chains and autonomous vehicle technologies, a better balance is needed between leadership and management. Management controls and monitors the present. It focuses on business processes, plans budgets and organizes the necessary resources. Leadership, on the other hand, focuses on future viability. It creates an environment and a culture in which the company can be successful in the long term by breaking down rigid thought patterns and motivating employees to help shape the change. 

However, there is no standardized definition of leadership, and it requires regular discussion so that individual scope for interpretation can come together. The basic prerequisite is a shared understanding of leadership attitudes and mindsets within the leadership team. This significantly impacts the way they make decisions, treat their employees, and shape the corporate culture. Without debate and reflection within the leadership team, individual mission statements develop and inevitably lead to contradictory behavior and decisions. For example, a „charismatic manager“ or a „good coach“ is not automatically a strong leader. There is no doubt that these are desirable qualities. However, they can also be a risk for a company, as seen in the DeLorean Motor Company in the early 1980s. Its founder, John Z. DeLorean, was a charismatic but controversial engineer who quickly gained fame and influence at General Motors and is still considered the youngest department head in the company’s history. Through his courage, self-confidence, and innovative spirit, he quickly made a name for himself outside the automotive industry. However, his business practices, his personal lifestyle and his financial and strategic decisions quickly led to problems and ultimately to the collapse of the company. 

Here we outline a “but different” recommendation for onboarding programs.

The automotive industry finds itself at a crossroads, navigating the challenging transformation driven by connected, autonomous, shared, and electric (CASE) vehicles in a digitized world. In this era of unprecedented change, future readiness and successful transformation inevitably require the ability to reshape capability and skill portfolios efficiently. It’s not just about staying competitive – it goes beyond simple competitiveness – it’s about dynamically redesigning the capability portfolio that serves as a foundation for driving future innovation and delivering greater customer value.

To address this challenge, the industry recognizes the pivotal role of onboarding both new hires and existing staff coming from upskilling and reskilling programs. The effectiveness of this process is crucial for closing strategic skill gaps and ensuring the rapid integration of new arrivals. At the same time, it acts as a protective measure and validates the substantial investments made in acquiring talent, fostering leadership, and developing functional skills. Against the backdrop of a shrinking average employee tenure, onboarding has emerged as a critical success factor. It acts as the driving force behind boosting commitment, strengthening retention rates, speeding up time-to-productivity, and ultimately cutting down on staff turnover. Onboarding goes beyond its usual role, becoming a strategic necessity that not only tackles challenges but turns them into chances to improve organizational effectiveness.

Facts tell a different story, but underline the importance of exceptional onboarding:

• In 2021, a mere 12% of employees in the United States felt that their onboarding experience was satisfactory, according to Gallup (2021)
• 1 out of 3 HR professionals reported that the quality of their company’s onboarding processes was not up to standard (ClickBoarding, 2020)
• 35% of companies have zero spend on onboarding (Enboarder, 2019)

On the flip side, a remarkable 70% of those who underwent exceptional onboarding describe their job as “the best possible job” (Gallup 2021). This contrast highlights the immense potential onboarding holds for shaping employees’ perception of their roles and, by extension, their commitment to the organization.

Die deutsche Automotive Industrie befasst sich intensiv mit dieser Frage. Die Qualität des Steuerungssystems der Firma ist zum neuen Top-Management Thema geworden.

«If the rate of change outside exceeds the rate of change inside – the end is in sight» soll die amerikanische Management Legende Jack Welch bereits in den 70er Jahren gesagt haben.  Das Unternehmen muss anpassungsfähig sein an eine sich immer schneller verändernde Umwelt. Aber wie geht das heute bei der schwindelerregenden Veränderungsrate, mit der Unternehmen in Form von Multikrisen, neuen Technologien und neuen Geschäftsmodellen konfrontiert sind? Wenn wir uns auf keine Prognose mehr verlassen können: Wie kommen wir trotz Nebel und Sturm am Ziel an? Viele Unternehmen sind diesbezüglich schwerfällig geworden und stellen ihre Steuerungsorganisation auf den Prüfstand. Sie hat trotz der Einführung agiler Methoden noch immer Mühe im Umgang mit Dynamik. Sie gibt nicht die nötige Orientierung, vergeudet zu viel Management-Kapazität auf das Kompensieren von Schwächen in der Entscheidungsstruktur, die Kommunikation funktioniert nicht und die Traktion ist nicht da.

A well-crafted portfolio strategy has never been more essential. Selecting the right products, services, and features that meet customer desires and needs is the key challenge in portfolio decision making, alongside managing risk, allocating resources, and maintaining agility. Could AI be the new standard for how portfolios can be managed more effectively? Think of AI as your most versatile team member, equipped for a variety of tasks. Much like a Swiss Army knife in the field of portfolio strategy. The only question is: how do you best use it?

Our approach offers a practical roadmap for using AI effectively. Not all pieces of the puzzle allowing usage of AI’s full potential are yet in place. However, the picture of how these pieces will fall into place is becoming increasingly clear. By integrating AI into portfolio strategy, a variety of benefits, such as time efficiency, deeper analytical insights, and easier scenario analyses, can be expected. The urgency to integrate AI into strategic planning cannot be emphasized enough. By doing so, not only present work and decision making can be improved, but also the groundwork for significantly greater benefits in the future is laid. Now is a crucial time to consider AI integration; those who act promptly are likely to be better positioned in an increasingly competitive market.

This article is the first in a series of articles exploring the potential of AI for portfolio strategy. As this technology is evolving fast, we look at AI with a dual lens: assessing what is already possible, and subsequently, identifying the next steps for leading automotive players towards (even more) customer-centric portfolios. In this context, this first article will focus primarily on the opportunities for automotive OEMs.