Automation and Car Industry

IFPMC- London

November- 2021

Car industry has always been of the most receptive industries to emerging technologies Since Henry Ford open the doors of (Ford) at the beginning of the 20th century, technology has redefined the way cars are manufactured, operated and maintained. (Kirkland, Giles,2019) However, the growth of autonomous technologies and ongoing computers considered one of the disruptive forces of the automotive industry.

On one hand, the major impact is in the field of jobs. According to the International Federation of Robotics, industrial robots in factories around the world are anticipated to rise at double up through 2019. Not only will the number of robots grow, but the range of tasks they can do will expand as well (Nakaishi, Toyoki,2017). this has severe consequences for business and will lead to the end of growth.

Furthermore, Swift changes in Automation have caused some panic within the business community in the general and automotive industry specifically.  senior leaders worry that their business may be blindsided and pushed out of the market by disruptive competition. BMW CEO Harald Krueger also pointed to the new threats looming from artificial intelligence “Until very recently our competitors were (Mercedes), (Audi), and (Porsche). Now we are looking at newcomers such as Tesla or Faraday Future – who knew these companies 10 years ago? And of course, high tech players like Google, Apple, Baidu or Alibaba,” Krueger said in a speech after the conference” (Winton, Neil.2016).

On the other hand, automation could significantly change the dynamics of the global economy. also offer an opportunity to the car industry.

First, it could increase production in a wide manner, which achieves the highest possible profits, and this is an opportunity to revive this industry (Nakaishi, Toyoki,2017). But to reach the highest productivity without compromising jobs, the leaders of the car industry must help people work in harmony with automation (Nakaishi, Toyoki,2017). They must gain practical knowledge of new technologies, adopt existing business models, invest in digital, and invest in training their workforce to meet the skills gap.

Second, adopted automation can contain the risks of disruptive competition, throughout beat the competition strategy, which is mean “aggressively invest in the new technology rather than trying to make improvements to the old one”(M7U2 ,Note, LSE GetSmarter,2018) and this happened with General Motors and other U.S automakers held back on investment in old plants, instead of focusing on raising productivity by invest in robots (Nakaishi, Toyoki,2017).

To sum up, Developing and improving autonomous technologies in the automotive industry in the future, whether it carries risks or prospects.

For the threat, automation might disrupt globalisation as well as might force the automobile industry to back home, but this to the benefit of businesses or consumers but not workforce.

For opportunity, automation has the potential to convert the nature of the car industry by making certain jobs redundant. Nevertheless, it is important to remember that it can also create new jobs. To get the opportunity of automaton, the leader in the automotive industry should be able not only invest in human capital but also, managing disruptive technology by becoming technically proficient in new methods of managing their organisation .

Reference

-Duchene, Courtney.2019, 7 Critical Risks Facing the Automotive Industry, Risk and Insurance, Magazine,[Online],Available At: https://riskandinsurance.com/7-critical-risks-facing-the-automotive-industry/

-Kirkland, Giles.2019, How new technologies have changed the automotive industry, Oponeo, [Blog], Available At: https://www.oponeo.co.uk/blog/how-new-technologies-have-changed-the-automotive-industry

– Nakaishi, Toyoki.2017, For US autoworkers, robots are the job killers not trade, Nikkei, Asian Review, Website, Available At: https://asia.nikkei.com/Economy/For-US-autoworkers-robots-are-the-job-killers-not-trade

– Winton, Neil.2016, Auto Industry Roiled by Technology Threats, But Is It Worrying Too Much? Forbes ,Website ,Available At: https://www.forbes.com/sites/neilwinton/2016/06/21/auto-industry-roiled-by-technology-threats-but-is-it-worrying-too-much/#5a5f018154b6