Automotive OEMs are rapidly moving to large-scale development, manufacturing, and sales of zero-emission vehicles as decarbonizing transportation systems become increasingly more urgent. The need to reduce CO2 emissions is being driven by both heightened social awareness of the impact of greenhouse gases as well as the increasing private and governmental mandates to reduce the number of gas and diesel vehicles in operation. According to BloombergNEF*, 2022 will see over 500 different EV models available globally.
So far, 12 US states have adopted California’s Zero-Emissions vehicle program, mandating the sale and use of ZEVs along with emissions standards. California forecasts 5 million ZEVs on their roads by 2030. Momentum for the manufacturing and sale of ZEVs will continue to increase as the total-cost-of-ownership slowly increases for vehicles with excess emissions and as government oversight increases with the consideration of regulations such as the CLEAN Future Act.
OEMs Embracing The Future
Many established OEMs have developed plans to embrace the ZEV future, with GM announcing a transition to ZEV-only manufacturing by 2035, Jaguar by 2025, and Volvo by 2030. In addition to established OEMs, there are an ever-growing number of new and emerging companies vying to win business across all ZEV sectors – Onroad, Offroad, commercial and retail. With the growing industry and the increasing competition, it is a highly opportune moment to consider, from the OEMs perspective, what systems and technologies are required to support established manufacturing operations and particularly the requirements for start-ups and pre-revenue firms in finance, supply chain and manufacturing operations.
Established OEMs Building ZEV
Established OEMs face a set of unique challenges. Whether it is dealing with inflexible legacy systems, the challenges of rebuilding existing processes, or rethinking the relationship the OEM builds with their end customer; the challenges often make established OEMs slower to respond to the changing and growing ZEV market.
While new and emerging OEMs do not face the challenges unique to established OEMs, they do have their own set of decisions to make while accelerating to production. New/emerging OEMs have a need for rapid implementation of core finance and accounting systems that will grow with the business to future manufacturing and after sales operational system needs. Many manufacturers in this sector also struggle to balance systems infrastructure investments with funding limitations, as funding priority is for development and production of vehicles.
Fortunately, for both new and emerging OEMs and established OEMs there already are examples of companies accelerating their time to market and mitigating the challenges of embracing a ZEV future by selecting and implementing automotive industry focused solutions that create value with innovative tools and technologies. As digitization enhances customer value and provides growth opportunities, it is likely that OEMs will quickly leverage on these technologies to gain the first-moved advantage.
If you are interested in learning more about the acceleration to a ZEV future, we have put together a white paper looking at the experience firms such as Annata have in architecting and implementing the systems required to enable rapid deployment of core, industry focused, business systems combined with roadmaps to facilitate the efficient and effective on-going development and implementation of manufacturing, service, warranty and fleet management capabilities.
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Click this link for access to a White Paper describing a model for the assessment and implementation of finance, supply chain and manufacturing systems.
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With over 20 years of experience as an independent solution provider (ISV) for the Automotive and Equipment industries, Annata provides solutions built on the Microsoft Dynamics 365 business application platform. Annata 365 is a next-generation unified technology solution that helps manufacturers, distributors, dealers, rental companies and fleet operators overcoming the industry disruption and challenges. Annata helps businesses in transforming existing operations and processes to adapt to and embrace new opportunities through technologies like IoT, ML (Machine Learning), AI (Artificial Intelligence), and cloud-based services. By collaborating with the teams at Microsoft, Annata maintains a strong expertise on the Microsoft platform and continues to provide innovative solutions, strong services, and unparalleled value to our customers.
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