Digitalisation could add $25bn to global revenues
Automotive suppliers Autofutura and GForces have merged to create the Automotive Transformation Group.
The new group has been created to streamline the customer journey by integrating data, products, services and technology on a single platform, thereby connecting car makers, finance providers, dealers and car buyers.
It has calculated that, based on 77 million new car sales last year, a one per cent efficiency saving could result in $25bn in additional revenues. That figure is even greater if including the €357bn in used car sales expected between now and 2025 in Europe alone.
The group also estimates that the industry could generate an additional £2.2bn a year by reducing sales process costs of about £142 per transaction.
Chairman David Riemenschneider said: “The digitalisation of the sales process is advancing at an unrelenting pace. The automotive market, which is one of the largest in the world, has lagged other sectors in terms of the speed of transition to online sales, but that is changing rapidly. Until now, the cost and complexity of integrating each element of an online and offline experience into a brand consistent omnichannel has prevented it being delivered at scale. The Automotive Transformation Group aims to change that. By joining up the dots we will enable car manufacturers, financiers and retailers to unlock the huge potential and efficiencies in today’s sales process and overall value chain.”
CEO Christian Erlandson said: “By connecting vehicles and consumers to the right customer and then facilitating the seamless transition from one vehicle to another, we are streamlining the customer journey, right from the first transaction.”
