Guest Commentary

Guest commentary: Automakers need to embrace the Pareto principle

The body shell of Skoda Karoq automobile on the production line at the Volkswagen AG plant in Bratislava, Slovakia, on Friday, Dec. 1, 2023. Volkswagen Slovakia began production of new generation of Volkswagen Passat and Skoda Superb models, it said in statement.
Automotive is one of the most capital-intensive industries in the world — currently, much of that capital is being spent on under-the-hood systems that won’t drive sales, returns or category leadership. (BLOOMBERG)
MG
By:
Matias Giannini
March 25, 2025 12:00 PM

The global automotive industry is at a crossroads. The sector is facing an era of intense competition, regulatory scrutiny and supply chain disruption. And this is all while new brands are challenging the technology and market leadership of legacy brands, forcing an innovation arms race. Success — and survival — depends on the ability of brands to rapidly adapt and differentiate their offerings from competitors.

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