Koichi Sugimoto (Japan)
Senior Analyst - BNP Paribas Securities (Japan) Limited
The Future of Technological Fuel Efficiency Improvement Technology and Auto Company Management
- Not only is fuel efficiency improvement the most important aspect of corporate social responsibility (CSR) in auto companies, but it is also the key to achieving long-term profit growth.
- In recent years, fuel efficiency improvement technology has played a vital role as a pillar of product differentiation strategies in auto companies, and in many cases, such strategies have had a positive effect in the overall brand image of many auto companies.
- However, as history has shown us, there have been cases in which poor implementation of fuel efficiency improvement technology posed a serious threat to the profitability and performance of some auto companies.
- As needs and demands diversify across geographical areas and car models, the need to diversify auto efficiency improvement technolgy also arises.
The re-allocation of existing management resources in order to satisfy these needs is one of the key challenges that auto companies face today.
- Many Japanese auto companies are anticipating the launch of “electrified vehicles” within the next year with strategic technological provements innovative enough to define the industry trend for the next ten years; the effect that this will bring about to company results as well as general consumer reaction will be worth noting.