Observations on the global changes that will impact Canada: Part 2 of 2
In Part 1 of our special report on the Global IAA Mobility conference held in Germany, we took a look at the major players and their ambitious global growth plans. In Part 2, we’ll delve into the content of the event and look at trends that will impact the industry — including Canada.
At the conference, Mobileye, Volkswagen, and German Tier 1 supplier Schaeffler highlighted their ADAS and autonomous driving solutions, with a specific focus on shuttle and robot-taxi solutions.
Although testing of autonomous vehicles is limited in Europe, with more focus in Austin or San Francisco than the streets of Europe, the interest in autonomous vehicles remains high with Volkswagen’s MOIA riding sharing service piloting in Munich.
Canada’s Magna presented their work on the Car of the Future, Joerg Grotendorst, SVP of the Car of the Future, commented that: “more than 70 per cent of our powertrain and engineering projects related to the fast-growing market of EVs” and underlined the global nature of the supply chain and increasing openness towards partnerships between suppliers and OEMs to deliver new products and solutions at pace.
From a dealer perspective, the move towards the agency model was re-emphasized by Mercedes-Benz presentation on the Transforming Customer Experience, which called out for the need for an ever more seamless digital experience for customers, greater focus on direct sales, with Julian Hess, Manager for Digital and Data Driven Sales, stating that 75 per cent of customers want to purchase a car online and Mercedes-Benz transition to the agency model will continue with the 30th market agreement being sealed recently in Malaysia.
Among the other premium brand presentations, Lucid was active at the IAA, with test drives being offered downtown, and an open house approach at their recently established retail store on the prestigious Odeonsplatz.
Joann Jung, design director, interior design at Lucid, talked about the Future of Luxury at the IAA Mobility Car Design roundtable, where vehicle manufacturers are taking lessons from the hotel and fashion industry to relook at durability and recycling of interiors.
Jung and fellow panelists talked about the likely move away from restricted interior choices that last the life of a vehicle, to a refurbishment and recycling approach where customers and OEMs refresh the look of their vehicles.
Jung referred to the option of choosing more luxurious, unique and delicate materials being used for interiors that can be changed multiple times during the lifetime of the car.
Like a luxury hotel redesigning their guest rooms, OEMs may want to refresh their vehicles to enhance residuals and product longevity.
Offering workshops with a new line of in-car vehicle interior upgrades — certainly an alternative to the standard detailing conducted by the aftermarket.
Sustainability at the dealership was a theme presented by Credit Plus, a major retail auto finance house. Dealer groups in Europe with more than 250 employees, similar to other larger employers, are increasingly being asked to provide detailed ESG reports, especially related to their carbon footprint and will be required by European law to report on a series of ESG metrics for the first time by 1 January 2025.
Though causing concern by dealers on the added financial burden this will cost, it also has created a new market around Green Auto Retail financial tools, including tailored loans for workshops to invest in EV equipment, workshop tools, and charging infrastructure. Structured loans and guidance for solar panel installations and longer-terms financial tools to help manage the energy requirements for large dealer premises.
The transition to EV sales has awakened a wider interest among some retailers to review their operations, and presents an opportunity also in Canada to review the investment needed onsite.
With increasing pressure from consumers, brands and regulators to be seen to reduce emissions and waste, it was interesting to see how auto financial partners are starting to look at investment packages that can support a wider transition to a greener and EV-oriented world.
