If you want to build an electric car, a century-old car brand will have to do it again

This should be the most anxious moment for multinational car companies.

The Chinese auto market is showing a new phenomenon: new automakers have become benchmark targets, and independent brands are becoming increasingly clear on the road to counter joint venture brands. Multinational auto companies, including luxury brands and joint venture brands, are in advantage of luxury. The car market was challenged by new car brands, and the joint venture brands represented by the Volkswagen ID. series did not succeed in the electric car market.

This should be the most anxious moment for multinational car companies.

Recently, including Volkswagen, Volvo and other multinational brands, have released a new strategy and objectives, Volkswagen 2030 NEW AUTO strategy put forward: to 2030 years, the share of electric vehicles is expected to rise to 50% , by 2030, software-related sales It is expected to reach 1.2 trillion euros, which is about one-third more than the estimated sales of pure electric vehicles and fuel vehicles, and personal mobility is expected to account for 85% .

When Model Y orders more than 10,000 units in China’s luxury electric car market Weilai also holds the top spot in the 400,000 -class electric car market . The sense of crisis for multinational car companies and luxury brands is becoming more urgent .

So recently, including both own brand or generic Volkswagen Volvo, etc., including cross-car prices are beginning to show technology to talk about strategy talking about goals .

If you want to build an electric car, a century-old car brand will have to do it again

So when China has undisputedly become a new battlefield for global electric vehicles under a clear transformation strategy, what challenges are brands like Volkswagen, BBA, and Volvo experiencing with a history of nearly 100 years ?

One can not ignore the fact that in order to iX3, EQC, e-tron as the representative of luxury brands of electric cars already on the market for two years but has remained at the edge of Chinese electric vehicle market On the one hand, BBAs continue to rise sharply in the fuel vehicle market , and on the other hand they are advancing the transformation of intelligence and electrification but they have always failed to achieve results Can luxury brands play in the Chinese electric vehicle market ?

Of course , at this stage , the market pattern cannot be truly finalized After all electric vehicles only occupy less than 10% of the entire automotive market , and full electrification will take at least nearly ten years .

Luxury brand after experiencing the electric car market to test the water more determined commitment to transformation .

Volkswagen’s luxury brand Audi recently announced , 2026 Nian global market launch of the new models will be fully electric vehicles .

Volvo recently proposed to become a pure electric luxury brand by 2030 .

Volvo, which has always been known for safety, also put forward a core concept : “Safety is the soul of autonomous driving” and stated that the next-generation pure electric flagship model will be  equipped with the most advanced sensors such as Luminar lidar as standard , as well as NVIDIA’s new DRIVE Orin SoC. chip. This is Volvo’s safety philosophy has always been smart continuation of the electric age was rather challenge the new brand meaning .

Meanwhile Volvo is a very small number have complete independent research and development  ADAS capability of car manufacturers, in addition to the outside perception, from perception of integration, to control the decision-making are all self-development .

As early as the Volvo Global Technology Day in early July, Volvo also released a series of scientific and technological achievements including future products that will be equipped with a self-developed integrated vehicle system- “VolvoCars.OS”,  based on the integration of VolvoCars.OS running on a central computing platform . Need to have a self-research team comparable to a software company, the most advanced electronic and electrical architecture, and a complex integrated solution design .

The transformation from hardware capabilities to software capabilities is also one of the biggest challenges experienced by traditional car companies in their transformation .

As a key step in the transformation of intelligence the public choose their own software system and set up the software sector however core competencies transition from hardware to software the traditional car prices must go through labor pains .

Last year Volkswagen once because the software can not be upgraded resulting in ID.3 late delivery in the European market which is why many traditional car prices will “expand personnel” as important a technology transformation the formation of a team of software and the ability of traditional car prices talent part of the restructuring but is also a huge imperative to adjust the organizational structure and even reconstruction .

Volvo and Volkswagen, like choose self-development software and equipped with a central computing platform in its pure electric car interiors .

The central computing platform of VolvoCars.OS enables Volvo to gradually realize the separation of software and hardware, which means that hardware can be introduced and updated more frequently, and iterative upgrades can be accelerated. Centralized calculation can avoid equipping each function and system with a dedicated electronic control unit, effectively reducing complexity. The core computing system is adopted to uniformly control all units in a more efficient and sustainable manner, and perform centralized software processing. Originally in order to achieve an iteration of user functions .

For example, when it is relatively humid and hot, creating a more comfortable and dry climate for the users in the car, it will design a combination of several functional logics , and it is very difficult for the OEM to drive several ECU suppliers to make changes, implementations, and re-modifications. . In the future, if complex calculations and vehicle functions are integrated into the central computing platform, then to achieve user functions such as upgrading air conditioning control, only the software on the central computing platform needs to be upgraded, which greatly improves efficiency.

Despite a clear strategy but the ground is slow but also the reality in front of us .

On the one hand , luxury brand electric vehicles represented by BBA generally have high prices and in terms of battery life and intelligence they are far from enough to support their pricing On the other hand most of these models are sold in traditional dealer channels and the exhibition halls of traditional 4S stores are mostly occupied by hot-selling fuel vehicles , and electric vehicles are bleak Under a clear strategy , the speed of landing luxury brands in the Chinese electric vehicle market is advancing with difficulty .

Volvo last year also introduced a pure electric version of the XC40 RECHARGE, and directly take official direct sale mode but not in the traditional reseller channel sales dealer commitment is to undertake work offline The channel has been changed since the first electric car which also shows Volvo’s determination to fully electrify This can be seen as a test of Volvo’s full electrification including innovation in its business model .

XC40 RECHARGE, image source: Volvo official website
XC40 RECHARGE, image source: Volvo official website

However it must also be admitted that in the Chinese electric vehicle market , the ” oil-to-electricity ” strategy is only a temporary solution .

It will take time for luxury brand new platform electric vehicles to enter the market Volvo’s recently unveiled RECHARGE concept car based on a new pure electric platform will be mass-produced next year . BBA also has a mass production plan for a brand-new electric platform . The new generation of products is the key to the luxury brand’s decisive battle in the electric car market .

For the luxury brands that have led an era with brand accumulation control , and driving pleasure they must reshape their brands in electric vehicles and rediscover their dignity .

Regarding Volvo ’s standards for a future car, Yuan Xiaolin , Senior Vice President of Volvo Car Group, President and CEO of Volvo Cars Asia Pacific, defined three points : First, it must be closely focused on the needs of consumers and the needs of the times. This is the core starting point for future automobile development; second, we must rely on the core values ​​and concepts of the brand to create efficient and differentiated products; third, we must grasp the laws of business in the process of practice.

Yuan Xiaolin, Senior Vice President of Volvo Car Group, President and CEO of Volvo Cars Asia Pacific
Yuan Xiaolin, Senior Vice President of Volvo Car Group, President and CEO of Volvo Cars Asia Pacific

This is destined to be a clear and uncertain journey of exploration .

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/if-you-want-to-build-an-electric-car-a-century-old-car-brand-will-have-to-do-it-again/
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