Strategic analysis of European OEMS and the shift to Electric Vehicles

Abstract

The aim of this study is to provide a strategic overview of the electric vehicle industry, identifying strategic measures that could enable European automakers, specifically Volkswagen, BMW, and Stellantis, to maintain their leadership within the global automotive market. This analysis integrates an external examination of the industry environment with an internal assessment of both new entrant firms and traditional European car manufacturers, aiming to discern their strategic positioning and identify the most effective development strategies. To achieve this, a combination of strategic frameworks was employed, including expert report analysis, SWOT, PESTEL, Porter's Five Forces, Value Chain analysis and the Strategy Clock. For the three firms analysed, two common patterns emerged: First, a focus on vertical integration, emphasizing batteries, raw materials, and software development. Second, the pursuit of joint ventures and partnerships aimed at achieving three key goals: developing a European battery champion/industry, acquiring EV expertise from Chinese manufacturers, and establishing a comprehensive charging infrastructure. The analysis yielded specific recommendations for each firm. Stellantis should seek partnerships with Chinese EV manufacturers to enhance the performance of its EV lineup. Volkswagen should focus on advancing its CARIAD software through collaborations with tech companies. BMW is recommended to emphasize its premium quality by enhancing connectivity features and Over-the-Air updates.