Industry-specific consulting for

Automotive

For more than 30 years TMG Consultants has been supporting OEMs and suppliers in the successful implementation of this transformation – with a deep understanding of the industry, methodological excellence and measurable impact.

With an annual turnover of over 400 billion euros and around 770,000 direct employees, the automotive industry is one of the main pillars of the German economy. The industry is undergoing profound structural change and is facing enormous challenges. Only those who fundamentally transform their business models, production systems and organizational structures and consistently improve their cost structures will remain competitive in the long term and be able to maintain their position in global competition.

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TMG 9 Industries 9 Automotive

Industry in transition

What are the current challenges facing the automotive industry?

The transition to electromobility, stricter regulatory requirements regarding CO₂ emissions and increasing competitive pressure from Asia pose major challenges for companies. At the same time, volatile supply chains, geopolitical tensions and rising commodity prices are making planning security more difficult. The USA’s announcement of a massive increase in tariffs on European cars means that additional sales losses are to be expected. High energy and wage costs combined with falling weekly working hours and an increasing shortage of skilled workers make competitive production in Germany virtually impossible. Last but not least, digitalization is also changing the product “car” itself – away from a purely mechanical means of transport to a networked mobility platform. The industry therefore continues to face massive challenges and structural adjustments in order to remain globally competitive in the long term. This applies both to OEMs and, in particular, to the supplier industry, which is dominated by SMEs.

Strategies for the future

What is the current need for adjustment and optimization?

Against the backdrop of these disruptive developments, a radical rethink is required:

Fostering innovation OEMs and suppliers must prioritize their investments in research and development – especially in the areas of alternative drive systems, battery technologies and software-based vehicle functions (e.g. OTA updates, autonomous driving).
Ensuring global competitiveness A clear positioning vis-à-vis new market players, particularly from China and the USA, requires differentiated product strategies as well as flexible platform and modularization concepts.
sRestructuring production and supply chains The development of resilient, regionally diversified supply chains and the digital integration of tier 1 to tier n are essential in order to be able to react to geopolitical risks and material shortages.
Focus on costs and results The transformation generates high up-front costs, which is why efficiency programs in indirect areas, purchasing, logistics and IT system landscapes are crucial in order to secure earnings targets despite investment pressure.
Sustainability as a competitive factor ESG-compliant production processes, the circular economy and carbon-neutral factories are not only required by regulation, but are also becoming real differentiators in global competition.

Industry expertise

Selected reference customers from the automotive industry

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