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These numbers virtually outweigh the optimistic sales and earnings outcomes. They paint an image of a sector that may be a much less engaging or less profitable place to invest than different industries. This assessment means that there shall be comparatively few winners within the auto industry through the next 5 years and beyond. Those that do stand out would be the corporations that harness their limited capital sources in creative methods, to navigate a still-unfolding and unfamiliar panorama.
Indeed, what is particularly notable in regards to the current wave of innovation in vehicles is not a lot the pace with which it has emerged (although that’s outstanding) because the breadth of the innovation — how much it’s altering the essential contours and features of the traditional automobile and amplifying the issue and value of producing automobiles. Ubiquitous electronics, a wide range of digital providers, and novel powertrains and connectivity systems are hastening the need for expensive new parts, components, and capabilities. For OEMs, the worth tag is high — as much as 20 percent larger than the price of the earlier technology of cars.
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