“Automotive suppliers must embrace faster innovation to adapt to new realities”
– Zhao Jizheng, Siemens PLM Software The automotive industry faces stricter fuel economy and emissions standards around the world, with varying deadlines for achievement through 2025. These fuel economy and emissions standards, along with improvements to safety, growth of intelligent mobility and customer desires for integrating their lifestyle into the vehicle, have automotive original equipment manufacturers (OEMs) relying more on electronics and embedded software to keep up with an ever growing industry. These trends are causing a fundamental change in vehicle technologies which requires more innovation from automakers and suppliers in alternative propulsion, lighter vehicles and energy optimization. A 2014 Center for Automotive Research report, entitled Advanced Information Technology Solutions: An Engine of Innovation, summarizes this sentiment by saying: “The industry is transitioning from a primarily mechanical-based industry to a software-based industry. In fact, some would argue that the industry is transitioning from a transportation focus to a technology focus.” Adopting these new technologies and product innovations drives more interaction across vehicle systems and components. As the complexity of vehicle systems increases with new types of technology, these innovations demand a fundamental increase in the sophistication of automotive systems. Suppliers must integrate mechanical, electronics and software capabilities as well as system development knowledge to deliver more complex systems. That, coupled with the global growth of the industry, increases the pressure on automotive suppliers to expand their own engineering, manufacturing and supply chain networks around the world, which adds to program and operational complexity. Staying in Front In Asia, suppliers are facing pressure on two fronts – the need to respond to their local market and OEM quickly, because Asia continues to be the growth engine for the automotive industry, and, as the part of the supply chain, they need to collaborate with global OEMs more efficiently and contribute more actively […]