FRANKFURT — The car market faces a new wave of consolidation as autos come to be electric, related and include remarkably automatic driving features, Alexander Hitzinger, head of Volkswagen’s Venture Artemis, explained on Wednesday.
“There will be consolidation. Not most people will be equipped to afford to pay for these sophisticated platforms. We will see emerging a lesser variety of extremely significant players who will drive this transformation,” Hitzinger explained to the FT’s Upcoming of the Car summit.
The want to connect autonomous driving sensors to electric powered motors, batteries and significant-definition maps is forcing carmakers to structure auto underpinnings and auto software running methods in household alternatively than stitching collectively legacy code and methods presented by a myriad of suppliers.
Venture Artemis is VW’s endeavor to do just that.
“Autos are so intricate that the common notion wherever you outsource to tier a person brands does not work any more,” Hitzinger claimed in a webcast.
The investment decision sums and the complexity of the technological know-how favors greater players due to the fact slipping income, induced by the COVID-19 pandemic, is creating it more difficult for lesser businesses to stem the investments desired to build chopping edge cars, he said.
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