{"id":5662,"date":"2022-04-29T19:24:00","date_gmt":"2022-04-29T19:24:00","guid":{"rendered":"https:\/\/www.signium.com\/?post_type=news&p=5662"},"modified":"2022-05-03T13:16:50","modified_gmt":"2022-05-03T13:16:50","slug":"the-mobility-pioneerism","status":"publish","type":"news","link":"https:\/\/www.signium.com\/sv\/news\/the-mobility-pioneerism\/","title":{"rendered":"The Mobility Pioneerism depends on Management success"},"content":{"rendered":"\n

Signium Belgium<\/strong><\/a> recently hosted an executive lunch at Belgian Auto & Cycle Federation (FEBIAC)<\/strong><\/a> featuring guest speaker Olivier Murguet<\/strong><\/a data-aos=\"fade-up\">, former Deputy CEO – COO and Chief Commercial Officer at Renault Group. Speaking about the “Mobility Pioneerism”, Murguet offered the following insights.<\/p>\n\n\n\n

The new context of mobility<\/strong data-aos=\"fade-up\"> is characterized by 4 dimensions: protect the planet, regulations, reputation (ESG), and digitalization of customer experiences.<\/p>\n\n\n\n

Consumer trends<\/strong data-aos=\"fade-up\"> 2017-2023 show fragmentation of mobility solutions with the rise of carpooling and microtransit solutions as well as bike and walking to detriment of privately owned vehicles. Autonomous mobility becoming gradually preponderant over traditional driver\u00ad based mobility, the intensity of the change depending upon regulations.<\/p>\n\n\n\n

Such fragmentation<\/strong data-aos=\"fade-up\"> creates opportunities for new players along with threats to the incumbents (traditional OEMs).<\/p>\n\n\n\n

The highest market cap\/EBITDA multiples<\/strong data-aos=\"fade-up\"> are the ones of NIO and TESLA, while the valuation of GM benefits from its autonomous driving business. The ratios of incumbents, even the most profitable ones, are penalized by their delay in catching new mobility trends.<\/p>\n\n\n\n

Transition<\/strong> to the new business models is extremely capital intensive<\/strong data-aos=\"fade-up\">, especially for the traditional OEMs which at the same time need to maintain their legacy (combustion engines) and invest in EVs, battery factories, and hydrogens technologies stillwith low sales volumes.<\/p>\n\n\n\n

Their capacity to finance<\/strong> such investments depends on their multiples, which in turn depend on the investors and analysts’ appraisals who appear to recompense players with a clear vision for mobility<\/strong data-aos=\"fade-up\">.<\/p>\n\n\n\n

In fact, valuations are very heterogeneous and do not depend only on financial performance<\/strong> as illustrated by new players such as Tesla or NIO, but also on the ability of incumbent players to achieve future and bold visions with clear visible steps<\/strong data-aos=\"fade-up\"> rather than generic buzzwords.<\/p>\n\n\n\n

Credibility in the eyes of the market<\/strong data-aos=\"fade-up\"> relies upon 3 complementary dimensions: profitability based on the optimization of today’s business models, the ability to disrupt the current business models, and a bold vision of the new core business, clearly communicated.<\/p>\n\n\n\n

Transforming the core business<\/strong data-aos=\"fade-up\"> includes major organizational changes such as spin-offs to reduce complexity, and customer-centricity such as digitalization of the customer experience. While defining the new core is an exercise still in progress for most OEMs.<\/p>\n\n\n\n

GM as a clear example<\/strong data-aos=\"fade-up\"> of such massive transformations: since optimizing their current business model started several years ago including exiting from several emerging markets and discontinuing sedans from their product line in order to generate cash to invest in new opportunities such as EVs and the 2016 acquisition of Cruise, a San Francisco-based self-driving start-up.<\/p>\n\n\n\n

Examples of new mobility product strategies<\/strong data-aos=\"fade-up\"> include:<\/p>\n\n\n\n