Electrifying the future of an American auto industry player – and the world at large
Driving change in the automotive industry
Surging electric vehicle usage is set to transform how businesses linked to this global sector operate and could spark a worldwide energy revolution. Hyphen is playing its own role in bringing about real change.
It’s time to buckle up for players in the automotive sector – an electrical storm is coming and it’s not going to go away. The internal combustion engine has been king since the 19th century but now this worldwide industry – and those working in related sub-sectors – must bow to the potential of electric vehicles (EVs).
These more environmentally friendly vehicles are all the rage, and the buying frenzy is only going to accelerate. Global electric car stock is predicted to hit 350 million cars by 2030, which is a 21-fold increase on the 2021 figure. This puts players in this sprawling, interconnected market in a predicament: when and to what extent do they change gears and prepare for an EV-dominated future?
After all, these vehicles are yet to reach anything close to their peak in terms of market share and yet adapting existing facilities would require considerable investment. Electric vehicles are very different to their gas-guzzling predecessors so deciding to deal with this new type of automotive will force businesses to purchase new equipment and retrain staff to ensure they work safely.
For some small businesses, making the wrong decision could see an outfit that has been around for decades on the scrap heap. For others with grander ambitions, however, implementing the right long-term strategy and being suitably prepared for the EV tsunami could be lucrative. For example, 40% of the value of an electric vehicle lies in its 1,500-pound battery alone and these are reusable for secondary purposes long after they are no longer suitable for cars – but how would businesses looking to capitalise on this best be able to do so?
The leaders at an American auto group with a multitude of sites dotted around the country fell into that latter category, interested in identifying opportunities. They were deliberating their own course of action when they realised it would be beneficial to develop a greater understanding of the financial risks and rewards.
The organisation had dozens of mechanics on the books, but bosses needed a different kind of automotive expert to look under the bonnet of their business. Specifically, they required someone with decades of experience in the car industry, a wide breadth of subject knowledge, and the ability to identify the wider impacts of and responses to the EV influx.
Furthermore, a more commercially orientated and entrepreneurial individual was required to provide insight that could drive the decision-making process. Without such a consultant to sift through the technical details and find the points most applicable to the group’s situation, there would be a risk of information overload.
By combining an overview of the EV environment with company-specific analysis, leaders would have a far clearer picture of what the road ahead looks like for the business. It was up to Hyphen to examine the opportunities for this strategic research and implementation engagement.
We analysed the EV landscape to unearth a more prosperous future for our client.
Our project team consisted of a management consultant with entrepreneurial experience from Asia and a seasoned veteran of the automotive industry from Europe who has worked with original equipment manufacturers (OEMs) and Tier 1 firms over the course of 30 years. While they differed in terms of age, location and industry background, their skills went hand in hand and were ideal for the job at hand.
After defining inputs and areas to focus on the client, our consultant and subject expert set to work together and started to investigate those points of emphasis. The consultant set the priorities, with the expert then exploring and explaining the practical ramifications. Through regular touchpoints, they would come together to distil that information down ahead of presenting it to our client’s leaders to better inform their multimillion-dollar decisions.
The pair went back to basics and discussed every aspect of EVs with our client, ranging from the different kinds of electric vehicles on the market and the batteries used within them to more technical points. With a knowledge baseline established, the client and project team worked from a position of mutual understanding, moving beyond merely hypothetical discussions. After all, there is no point in talking strategy without first understanding day-to-day reality.
Working in sprints over a three-month period, our team researched the options and opportunities available to the business. These included evaluating potential pilot schemes, looking at possible partnership introductions and examining existing practices elsewhere to build up a comprehensive picture.
Europe is acknowledged to be roughly four years ahead of America when it comes to EV adoption, so our technical expert was able to relay details of what he has already seen. However, the suggestion was not to merely adopt these ideas wholesale; opportunities to improve upon what is being done were also identified.
As discussions continued with client leaders, our project team developed a clearer idea of what strategies might be most suitable. As the engagement progressed, more stakeholders on the client’s team took an interest in the work, intrigued by the subject and what it could mean.
Work eventually reached a point where our expert and consultant had assessed the opportunities open to the organisation, fleshing them out to give managers a clear idea of what would be required. Our project team even included detailed plans for how to implement some of those strategic options once a decision was reached.
So impactful was the work done, the engagement scope was extended to help our client with the next phase of the project.
Armed with ideas, a collection of expert insights and an action to help with any transition, company leaders were ready to proceed. Having gone through a comparatively theoretical stage of looking at the extent to how much – if at all – it would adapt its business model to accommodate EVs, our client decided it was right to integrate EV into its plans.
One of their first courses of action was to keep our pair of professionals on for the next stage, such was their confidence in our team and the work they had done. Now it was time to start implementing those adjustments, with our two professionals continuing to advise them through this transition period.
The company’s largest operational centre was chosen to serve as a centre of excellence in the field of EVs. This saw plans developed to train the staff there to work with these automobiles and to install specialist equipment. It is then expected that this knowledge will filter around the company, with technical hubs set up on a regional basis – a decision that will expand opportunities in a cost-efficient way.
Our consultant and expert provided – and continue to provide – valuable analysis of the future of a major industry in an easily digestible manner for stakeholders. They have helped leaders to understand and choose from the options available, and then handed over a comprehensive implementation strategy.
That last point emphasises how we go the extra mile and illustrating just how effective it is when Hyphen’s cross-functional teams work with businesses to address their most significant corporate decisions.
Hyphen’s team provided our client with a detailed appraisal of the future of the automotive industry and particularly the EV market. Our project team also prepared a comprehensive business roadmap and is still working with them on a pilot to test a new approach.
A versatile SaaS and AI entrepreneur and management consultant from Asia with hedge funds and business leadership experience.
An automotive expert from Europe with more than 30 years of experience working with original equipment manufacturers and Tier 1 firms around the globe.
Our detailed search found top-class individuals and organisations capable of maximising the project’s value by providing specialist knowledge
Market Analysis and Strategic Advice
Our team evaluated the US automotive market, presented the client with a series of business strategy options, and supported company leaders
We extended the scope and duration of this engagement to aid the client with a pilot scheme being trialled in a key site in the southern United States