This chart reflects what the industry already knows: the automotive value chain is no longer linear—it’s a dense, fast-evolving #ecosystem. At LeddarTech, we see this not as disruption, but as #opportunity. As OEMs take ownership of software and decouple from traditional hardware dependencies, they need scalable ADAS solutions that integrate cleanly across architectures. That’s where we come in. Our sensor fusion and perception software reduces complexity, accelerates development, and gives both OEMs and Tier-1s a clearer path to differentiation in the SDV era. The old model is fading. We’re building for what’s next. Let’s connect if you are too. #SDV #ADAS #SensorFusion #AutomotiveStrategy #LeddarTech #OEM #Tier1 #MobilityInnovation Augustin Friedel 🚲 🛴 🛵 🚘
Software-defined Vehicles | AI enabled Mobility & Engineering | Mobility Transformation | Thought Leader | Where to play & How to win
🤑 Here is how the OEM & supplier landscape is changing 😬 👉 Please reshare with your network. As always, just my personal opinion. Add yours below 👇. - Suppliers are facing the challenges 😱 of the transformation towards EVs & SDVs. Known pyramidal set-up is getting disrupted by new players, SW and HW decoupling and regional differences. - Preparing the company to deliver solutions for EVs and SDVs is highly complex. It‘s expensive 🤑, organizations and processes need to be changed, new methods and tools are necessary. - Uncertainty in demand and stagnation of the business is adding more complexity 🤯. Financial budgets are constrained and suppliers are with the backs to the wall. Where we are coming from: - OEMs 🚗 defined high-level requirements, suppliers developed and embedded software and hardware in complex subsystems. - OEMs integrated the subsystems into the vehicle programs. Tier-2 suppliers delivered microcontrollers, sensors, material to Tier-1. - Hierarchical structures resulted in limited visibility for OEMs, characterized by information asymmetry, black boxes, dependencies and impossibilities for holistic SW updates. The next phase: - The move towards software-centricity and decoupling blurs the traditional, well-defined boundaries between OEMs, Tier-1 suppliers, and semis. - OEMs take charge by moving beyond their traditional role as assemblers and integrators of Tier-1 supplied subsystems. - OEMs choose to source software components directly from specialist vendors or develop them in-house. They potentially procure hardware platforms directly from semiconductor companies. - New players with a SW and technology USP appear in the industry, either coming from hyper scalers, consumer tech players or as startups. - Semis and cloud players started the consolidation of the fragmented SW landscape by acquiring mid-size but strategically important companies. What’s the consequence for Tier-1s and beyond? 👉 Tier-1 position is being fundamentally challenged, triggering the need of a strategic repositioning. Players are forced to find new value propositions beyond the traditional model. 👉 One way is to understand and decide where they have a competitive edge as service providers vs. where they have a chance with technology. To remain competitive, what could traditional suppliers do 🤷♂️? 👉 Realize that willingness to change the organization is the make or break. Without radical changes in PMTO, all other steps are at a high risk to fail. 👉 Clear direction: Move from providing embedded edge components to services and tech leadership opportunities. 👉 Optimize portfolios through partnerships and strategic focus and refine regional strategies to address geopolitical and market volatility. 👉 Learn from other regions and apply the learnings. 👉 Achieve cost leadership via efficiency gains, automation, and standardization Reach out if you want to discuss the „Where to Play“ & „How to win“ 👋. #suppliers #car #SDV