The European automotive sector has ascended to the top of the global industry. It has achieved record sales, and—as a major employer and a source of significant grantmaking—it is an integral part of European society. Fundamental changes in the industry, however, are threatening Europe’s lead position.1 If the European automotive sector is to stay ahead in this changing competitive landscape, leaders will need to make some tough decisions. Above all, a shared vision regarding the sector’s positioning is needed.
To inform the discussion, we undertook a study examining the future of Europe’s automotive industry. The research drew on proprietary knowledge and analysis from the McKinsey Center for Future Mobility, interviews with automakers’ executives and members of the European Automobile Manufacturers’ Association, and conversations with stakeholders in key automotive associations. Our findings are presented in our new report, RACE 2050—a vision for the European automotive industry, which imagines the industry as a Responsible Automotive Customer-centric Ecosystem (RACE).
The report itself is structured in three parts. The first looks at unprecedented changes in the European automotive industry, the second at a long-term vision for the sector, and the third at five clusters of initiatives that could help deliver on the vision. The remainder of this article focuses on the future vision and what it will take to ride the wave of technological megatrends redefining mobility.
Please click here to view the full study.
SOURCE: McKinsey & Company
