Summary
- European and Japanese auto giants are failing in the electric vehicle race due to incompetent strategic planning
- Large companies need to look further ahead than 3-5 years and consider iterative futures methods for survival
- China has surpassed the West in producing quality electric vehicles with better technology and innovation
- Toyota and Volkswagen are facing challenges due to strategic incompetence and failure to adapt to the evolving automotive landscape
- The West’s business models and educational institutions need to adapt to the changing market dynamics to ensure a sustainable future for the upcoming generations
Article
Dr. Paul Wildman and David Waterworth discuss the industry transition to electric cars in their conversations on strategic planning. They argue that European and Japanese automakers are failing in the EV race due to incompetent strategic planning. Instead, they suggest that Futures Research is needed to address actual disruption in the industry. They highlight the importance of staying ahead of the market by at least 5 years to survive, as legacy car companies are falling behind China and Tesla.
Regarding specific examples, they focus on VW and Toyota as representative of German and Japanese automakers’ failures in strategic planning. They discuss how VW lost strategic initiative by firing Herbert Diess, resulting in setbacks and struggles for survival. They question whether VW would have fared better if Diess had remained in power. They also point out China’s advancement in EV technology, surpassing Western offerings in terms of quality, range, and cost-effectiveness.
In the case of Toyota, once a leader in innovation and efficiency, the company is now lagging behind in EV development and promoting ICE FUD (Fear, Uncertainty, Doubt). The authors criticize Toyota’s failure in strategic planning and urge companies to adapt to the changing automotive landscape. They highlight the need for independent futures research departments reporting directly to the CEO to ensure proactive planning and decision-making.
The article discusses the need for a shift in the Western business model, emphasizing the importance of adapting to the rise of China and the changing global economy. It points out the flaws in the current strategic planning methodologies and calls for a more forward-thinking approach to ensure survival in a disrupted industry. The authors express concern for the future of the automotive industry and the impact on the planet if companies do not adapt quickly.
Dr. Paul Wildman, a retired economist and futurist, provides insights into the need for proactive planning and innovation in the automotive industry. He emphasizes the role of critical futures praxis and strategic planning in shaping the future of transportation. The article concludes with a reflection on the structural flaws in the Western business models and the urgent need for a paradigm shift to address the challenges posed by the rise of EV technology and global competition.
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