Automotive industry: New business models require adjustments in controlling

The German automotive industry is undergoing a huge upheaval. The transformation from car manufacturer to mobility provider is not only comprehensively changing the strategy and business with external customers, but is also having an impact on internal corporate management.

New sales and business models such as shared mobility, online direct sales and functions on demand require adjustments to internal management and controlling. Our new study "The automotive industry in transition: consequences for corporate management", for which we interviewed managers with a controlling background from various OEMs, shows that companies still have a long way to go.

The respondents see enormous future sales and earnings potential in the new business models. Customer centricity is becoming a decisive differentiating factor in the market. However, the interviews revealed that the new sales and business models have so far been insufficiently taken into account in controlling.

On the one hand, the controlling departments are still not utilising their valuable business knowledge enough to contribute to the transformation of the business model in the OEM as a business partner. On the other hand, controlling is required to change its management tools so that they fit in with the new business models.

In the study, we first describe the challenges of transformation in the automotive industry and present the results of the interviews, with a focus on new sales and business models and their impact on controlling (tools and methods, organisation and processes, employees, systems).

In the second part, we provide better practice concepts to take account of the new business models in the controlling model. These are based on customer projects and conceptual considerations. We explain the various components of a management model structure and describe the need for adaptation using the example of the subscription model, which is currently being adopted by many car manufacturers.

You can download our study here: