Global car makers found to make slow progress toward digital redo

FRANKFURT: Auto companies are finding that it’s easier to adopt the trappings of the economy than to push through the changes necessary to become full-blown members.

While some executives have swapped suits and ties for trainers, and carmakers have established glitzy urban software outposts to attract new talent, the accompanying cultural shift is moving at a painfully slow pace, according to a new study by KPMG and recruiting consultant Egon Zehnder International being released at the Shanghai auto show.

The industry “seems to be clinging to its old ways,” according to the researchers, who surveyed more than 500 industry executives. “Leaders recognise the unprecedented challenge now facing them, but have yet to establish the ‐ready culture needed to meet it.”

The messaging is on-target. Outgoing Daimler Chief Executive Officer Dieter Zetsche now presents new models clad in jeans and track shoes, while Volkswagen headquartered its Moia future-tech division in Berlin, a one-hour train ride from the German carmaker’s mothership in Wolfsburg.

Factories from Detroit to Turin are being re-fitted for the dozens of electric models planned over the next several years.

But in the crucial area of culture, not much has changed to get companies -ready, more than half the respondents said.

While almost everyone agreed that the way the workplace operates must be redefined to tackle the transforming market, just one-third supported concepts such as flatter management structures. Even fewer would welcome a greater tolerance toward making mistakes.

“Executives are still thinking about transformation in terms of process change rather than a shift in mindset,” KPMG and Egon Zehnder said.


You might also like More from author

Leave A Reply

Your email address will not be published.