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Future sustainability and digitalisation reshape automotive testing: Using competence and market based business models to address opportunities in building internal capabilities or in spinning off businesses
Halmstad University, School of Business, Engineering and Science.
2016 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

There are several major trends that will affect the future of the car industry. One trend is the

demand for newer models in shorter times. A second trend is the increase in automotive technology.

A third trend is the effect of legislation on fossil fuel-based drivelines and the introduction of new

technology in the driveline. Hence the cars developed by the Volvo Cars R&D division have to be

tested in order to meet all requirements. Volvo Cars’ internal department, Analysis and Verification

Environment, currently conducts these tests.

In testing cars in the future, the challenge is to become more efficient in terms of operational

capabilities as well as to review current competencies. Hence, future technology and legal challenges

drive significant competence and investment needs in the automotive testing industry. A major shift

in competences is needed in order to meet future requirements on sustainability and digitalisation.

Sharing investment costs and facilities can have business potential. There is an opportunity to spin

off VC’s Analysis and Verification Environment, which would permit sharing the future competence

and investment burden with other stakeholders. However, from Volvo Cars’ perspective, achieving

cost effectiveness and making test facilities available must be secured, but not at the risk of

jeopardising future car programmes. Therefore a profitable business case for spinning off Analysis

and Verification Environment is needed. This means Analysis and Verification Environment, as a

spinoff company, must be capable of success on the open market.

This report addresses the following questions: Can VC’s Analysis and Verification Environment

division be spun off? If so, how can it be organised so that it can succeed in the open market? This

report concludes there is a potential benefit to spinning off Analysis and Verification Environment.

However, the success of the spin off requires execution of an Action Plan based on a

competence/market business model that includes, for example, a strong value proposition.

Place, publisher, year, edition, pages
2016. , 65 p.
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hh:diva-32581OAI: oai:DiVA.org:hh-32581DiVA: diva2:1052014
Examiners
Available from: 2016-12-05 Created: 2016-12-05 Last updated: 2016-12-05Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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