Automakers rely on sales of their new models in order to increase their profits. However, in the last four years over half of commercial launches of new cars have been delayed, a fact that it hurts a lot the brands.
According with a report by PwC ConsultingOnly the 2023 in North America the 34% of launches has been delayed due to production problemswhile another one 21% showed delays“due to other factors”as typically stated.
What are the causes? According to the analysis, transition to electric carsthe effect of the pandemic after problems in the supply chainthe new software but also the advanced driver assistance systems (ADAS). In addition, the impact of compliance needs is also highlighted stricter emission standards.
The company estimates that a continued delay at the commercial launch of a new model, may cause damage that reaches 200 million dollars in one year for an automotive industry! This could “translate” into revenue losses ranging from 30 and 50 billion dollars for the entire industry.
The numbers are impressive and add up new headaches to brands in recent years. It is worth mentioning that the 2018always according to the same elements, the delays due to production problems they were just reaching it 5%while a year earlier… simply were non-existent. The “barriers” from “other” factors amounted to 18% and 13%respectively.
The positive for car manufacturers is that the 2023 they managed to stick to the commercial schedule they had set on 45% ratewhere is the greater than 2019 (50%).
As for the next day; PwC Consulting estimates that by 2026with the expected doubling of presenting new ones electric modelsthe problems, the delays will continue to exist. In fact, he states that their rates will vary between him 20% and 40%.
In order to address the problem, the company advises car manufacturers to revise their approach both in terms of design and the production of new models, as well as in hers their collaboration with supplier networks.
Source: PwC Consulting
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