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    Suppliers and SMEs

    New opportunities for development service providers

    The transformation to electromobility, digitalization, and new powertrains is forcing some development service providers to reposition themselves, as their target groups are likely to change, too. This opens new possibilities.

    The transformation to electromobility, digitalization, and new powertrains is forcing some development service providers to reposition themselves, as their target groups are likely to change, too. This opens new possibilities.

    Location advantage for Germany

    Necessary expenditure on new technologies, zero-emission powertrains, or digital and networked services is leading to long-term growth in manufacturers' research and development spending. Established automotive manufacturers and their direct suppliers still represent the strongest pillar of revenue for development service providers, but these customers are showing below-average growth, such that these providers are well advised to actively develop new target groups. The distinctive automotive competencies of development service providers enable them to quickly become competitive with their products, and this applies to new players on the market in particular.

    To date, the close interaction between manufacturers, direct suppliers, and development service providers has been an invaluable competitive advantage for Germany as an automotive location thus far. The intensive division of labor has resulted in the development of highly innovative and efficient value creation. Of course, companies remain responsible for the development of innovations and marketable products, yet it is the task of politicians to level out international imbalances in research funding.

    The VDA Working Group of Development Service Providers, to which the managing directors of more than 20 renowned development service providers belong, deals with current challenges and issues within the industry. At the same time, the outlook for the industry as well as constantly adapting customer relationships are monitored and discussed.

    André Kunkel
    Contact person

    André Kunkel

    Economic policy, foreign trade, SMEs and taxes

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