Financial stability within a rapidly evolving sector: the automotive industry
As far as most people today are concerned a car is just what takes us from A to B. But only 150 years ago, there were no asphalt roads and people travelled by horse and buggy. This changed in 1885, when Karl Benz launched a car without a horse and with a combustion engine. This resulted in the establishment of the car industry as we know it and laid the foundation for one of the most rapidly evolving sectors, namely the automotive sector.
In the early years of the automotive sector, cars were a luxury item not affordable for everyone. Many people dreamt of having their own means of transport. Around a hundred years ago, in the 1930s, now-famous car brands like Fiat, Citroën and Ford began developing inexpensive cars for the masses. Thanks to assembly line work, cars became available at a much lower price, marking a turning point in the industry. Today, UK households have an average of 1.2 cars in his or her driveway. Although this number is relatively stable, automotive companies are experiencing lower sales in cars. In fact, one of the leading motor shows in the world, the IAA in Frankfurt, attracted thirty percent fewer visitors this year than last. Furthermore, around 30 car brands did not participate in the event.
The sector is under pressure from up-and-coming trends, climate agreements and the mobility behaviour of consumers. The digitisation and farreaching personalisation of customer communication also play a major role in this development. What impact will all of this have on customer behaviour? How can you distinguish yourself as an organisation within the automotive sector when the differences between you and your competitors are growing smaller? And how do you maintain control of your customers’ payment performance and your cash flow? In this whitepaper, we take a closer look at trends in the sector and how changing financial processes can contribute to greater customer satisfaction, customer retention and continuity within the organisation.