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The Big Three automakers have been locked in an intense battle over the past few years to dominate the next generation of the car industry. This battle revolves around factories, technology, vehicle design, autonomy, and access to capital.
The first factor at play is factories. To be competitive, automakers are racing to invest heavily in new factories. These investments will likely be directed towards more efficient assembly and manufacturing processes, as well as electric vehicle production capabilities. GM, for example, recently announced that it will spend $2.2 billion to convert its factories in and around Detroit to build electric vehicles.
The second factor revolves around technology. Each automaker is investing heavily in the areas of connectivity, sensors, autonomous driving, and artificial intelligence. Detroit’s Big Three are relying on different strategies to meet their technical objectives, including partnerships with technology companies, acquisitions, and joint ventures.
The third factor is vehicle design. GM, Ford, and Chrysler are all looking to revise their offerings to appeal to the buying public. This includes focusing on cutting-edge exterior designs, technologies like autonomous vehicles, and interior comfort.
Finally, the fourth factor is access to capital. Without adequate capital, an automaker cannot invest in the factories, technology, and vehicle design necessary to stay competitive. Detroit’s Big Three are increasing their access to capital through partnerships with venture capital firms, access to private equity investment, and capital raising activities.
The competition among Detroit’s Big Three to dominate the next generation of the car industry is fierce. Each automaker is investing heavily in factories, technology, vehicle design, autonomy, and access to capital. The future of Detroit’s Big Three will depend on which one can differentiate itself and gain a competitive advantage in the auto industry of the future.