Fleetowner Com Sites Fleetowner com Files Uploads 2013 12 Ford10
Fleetowner Com Sites Fleetowner com Files Uploads 2013 12 Ford10
Fleetowner Com Sites Fleetowner com Files Uploads 2013 12 Ford10
Fleetowner Com Sites Fleetowner com Files Uploads 2013 12 Ford10
Fleetowner Com Sites Fleetowner com Files Uploads 2013 12 Ford10

Innovation seen as a critical light vehicle touchstone

Dec. 3, 2013
Yeah, yeah, yeah: why should anyone be surprised that “innovation,” especially where technology is concerned, is increasingly being viewed as a “do-or-die” metric where light vehicles are concerned? I mean, work truck users expect each succeeding model year to come equipped with better attributes, from improved fuel economy on down to better cup holder location and design.
Yeah, yeah, yeah: why should anyone be surprised that “innovation,” especially where technology is concerned, is increasingly being viewed as a “do-or-die” metric where light vehicles are concerned?

I mean, work truck users expect each succeeding model year to come equipped with better attributes, from improved fuel economy on down to better cup holder location and design.

Yet to produce any “innovation” in the light vehicle space – for commercial users or consumers – is not a cheap proposition, by any means.

For example, consider the investments made by Ford Motor Co. to retool its European-designed Transit full-size van for the North American market – an effort that included $1.1 billion to upgrade its Kansas City Assembly Plant to produce a vehicle that will eventually replace Ford’s tried-and-true E-series van. That’s not chump change, by any means.

Indeed, a recent study by global consulting firm PricewaterhouseCoopers (PwC) one-third of automotive executives, globally, say that improving products is their top innovation priority, with about the same number (32%) planning to generate “radical or breakthrough” innovations going forward.

"The automotive industry is fiercely competitive and consumer expectations are higher than ever," said Felix Kuhnert, PwC's European automotive leader.  "It's about risk and reward.  Companies that engage in innovation as a key element of their corporate DNA will likely be the market leaders of the future."

He added that for the 1,757 automotive CEOs polled by PwC across more than 25 countries, the most important way to create and foster an innovation culture is to set the right “tone from the top” as more than three-quarters of automotive executives (79%) say that senior executive participation in innovation projects is important.

Robert Shelton, PwC's global innovation leader, pointed out that OEMs and suppliers alike have been making” innovation” an explicit C-suite priority, under the leadership of a chief innovation officer or chief technology officer, with a growing number of such posts onsidered executive-level management positions in the boardroom.

"Having a well-defined innovation strategy can mean the difference between being leader and laggard," Shelton noted. "Fast-paced technological advancements and business model innovations are changing the way companies bring value to their customers. Automotive companies that learn to industrialize innovation to create repeated, scalable breakthroughs will be the front runners in the global marketplace – from talent acquisition to commercialization."

One such area of “innovation” that’s getting more attention these days: autonomous driving vehicles, where cars and light trucks alike are being designed to operate themselves.

Take the Volvo Car Group, for example: they’ve initiated a large-scale autonomous driving pilot project in which 100 self-driving Volvo cars will use public roads in everyday driving conditions around the Swedish city of Gothenburg.

A joint initiative between the Volvo Car Group, the Swedish Transport Administration, the Swedish Transport Agency, Lindholmen Science Park and the City of Gothenburg, this unique project—called “Project ‘Drive Me’”—aims to pinpoint the societal benefits of autonomous driving.

"Autonomous vehicles are an integrated part of Volvo Cars' as well as the Swedish government's vision of zero traffic fatalities. This public pilot represents an important step towards this goal," says Hakan Samuelsson, president and CEO of Volvo Car Group. "It will give us an insight into the technological challenges at the same time as we get valuable feedback from real customers driving on public roads."

[Below, you can watch one aspect of autonomous driving “innovation” at work, in this case vehicle self-parking technology.]

Volvo said this “autonomous driving” pilot project will involve self-driving cars using approximately 31 miles of selected roads in and around Gothenburg described as “typical commuter arteries.” The project also includes fully automated parking technology (like what’s seen in the video clip above) without a driver in the car.

The company added that “Project 'Drive Me'” will commence in 2014 and the first cars are expected to be on the roads in Gothenburg by 2017.

Catharina Elmsater-Svard, the Swedish minister for infrastructure, added that autonomous vehicles and a smarter infrastructure not only should help produce safer traffic flow but also could help reduce infrastructure investments and reduce emissions.

“Recognizing that growing urbanization continues to put pressure on transport systems in and around urban areas all over the world, 'Drive Me' addresses the need to join forces in the quest for a sustainable society and mobility,” she said.

“Autonomous driving will fundamentally change the way we look at driving cars, as you can plan your drive with a mix of autonomous and active driving. This makes the journey more time-efficient. You can safely interact via phone or tablets or simply choose to relax,” Elmsater-Svard noted. “The self-driving technology used in this pilot allows you to hand over the driving to the car when the circumstances are appropriate.”

And if it works as advertised, such innovation could help spark more sales – and thus more revenues and profits – for the Volvo Car Group; and that’s certainly a big reason why vehicle makers are focusing so much on innovation these days.

About the Author

Sean Kilcarr 1 | Senior Editor

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