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Strategy Analytics: Auto Manufacturers Must Invest Wisely in Vehicle Technologies.


BOSTON -- Product Development and Marketing Priorities Challenged

The new Strategy Analytics report, "OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and  Activities in In-Vehicle Multimedia, Communications and Telematics Markets," reveals that automotive manufacturer investment in an ever growing range of in-vehicle technologies See automotive systems.  and increasingly fragmented market opportunities will result in major cost pressures for OEMs (vehicle manufacturers).

There is growing competition for OEM R&D budget funds between a wide and increasing range of automotive technologies. In addition to the need to invest in technologies intended to make their vehicles more competitive and desirable, there are other automotive investment pressures for OEMs, particularly in the areas of advanced safety systems, emissions control Emissions control may refer to:
  • EMCON, a military state of readiness.
  • Automobile emissions control
  • Power Station Emissions Control
, and other automotive software Automotive software is a software driving a microcontroller within automobiles. These microcontrollers are usually specific to automotive applications usually containing integrated bus transceivers interfaces for bus systems like LIN, CAN, MOST, LAN among others.  development. Financial pressures mean will prevent OEM investment in a wide and increasing range of in-vehicle technologies. Over the next 2-3 years, OEMs need to prioritize their market strategies

Premium brand OEMs, particularly BMW BMW
 in full Bayerische Motoren Werke AG

German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s.
 and Mercedes Benz Mercedes Benz

expensive automobile and status symbol. [Trademarks: Crowley Trade, 368]

See : Luxury
, as well as the more profitable volume makers, such as Toyota, are currently the best positioned to address the wide range of emerging in-vehicle market opportunities. But the growing cost and competitive pressures of investing in an ever growing range of technologies will soon force all OEMs to rethink their in-vehicle product development strategies According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Joanne Blight, Director, Automotive Practice, "OEMs need to make more focused in-vehicle product development investments, particularly in entertainment and communications. But they will need to balance development in these product areas very carefully against other automotive technologies." Blight continues, "Undoubtedly some OEMs will try to push some of this investment pressure to their supplier community which will create opportunities for suppliers. However suppliers will require ample car buyer data to avoid agreeing to costly investment errors with their OEM partners."

For a chart, "OEM Technology Investment Pressures," and other details, see www.strategyanalytics.com/press/pr00151.htm

About Strategy Analytics

Strategy Analytics, Inc., a global research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee
consulting company

business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a
, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com
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Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Feb 14, 2005
Words:371
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