Samsung Electronics-owned HARMAN Automotive’s SVP, HR, Markus Helfrich mentioned the broader environment comprising geopolitics, supply-chain points, semi-conductor scarcity, has closely impacted the worldwide automotive industry.
However, ‘‘These challenges have definitely made the industry more cautious, more resilient in sourcing and handling partner ecosystems, building location strategy, but also made the industry to be more strategic,’‘ he told The Hindu.
Mr. Helfrich also said, the industry which was on a reaction mode, traditionally, has now entered an anticipation mode, because of the constantly changing market environment.
“We’ve had to construct resilience, in sourcing, in associate ecosystems, in location technique. And we’re not simply reacting now, however we’re anticipating the place the industry is heading and making ready properly upfront. The challenges have positively made the industry extra cautious, but additionally extra strategic,’‘ he added.
According to Mr. Helfrich, the biggest impact on the industry so far has been, the change, that is getting more “rapid’‘ and increasingly “unpredictable.’‘
“Things are coming without any notice today. If something happens with China or Taiwan tomorrow, we don’t know. It is unpredictable. The tariff scenario has a massive affect. I imply we’re all conscious of issues taking place in a single day. So, issues can change rapidly,’‘ he observed.
Narrating a classic example of geopolitical tension faced by the industry recently, Krishna Kumar, Managing Director, HARMAN India said, the rare earth material shortage came up as a big issue globally; and neo magnets, or neodymium, a type of strong magnets made from alloys of rare earth elements, came only from China.
“It is difficult for anyone to make a speaker without neo magnets, the best-in-class magnets, used in speakers for high-quality sound effects. China decided to revoke the licences of all providers of these magnets and asked them to reapply. Our vendors were fortunate to receive approvals from China, and we were able to procure the neodymium magnets. For some time it was a big tension, and it was a 100% geopolitical issue,’‘ commented Mr. Kumar.
Mr. Helfrich further said, earlier the industry had time to prepare and fix strategies, but now under constantly changing market dynamics, that mode was not feasible anymore.
“Today, what keeps you alive is a good network, global reach, international mindset, having a strong team that works together beyond any conflicts. To my understanding, that is the only thing which guarantees you to stay above any daily conflicts,’‘ concluded Mr. Helfrich, who was in Bengaluru as part of HARMAN Automotive’s 14‑month world cultural transformation programme designed to reimagine how the company’s automotive groups assume, collaborate, lead and develop.
Stamford-based Harman International was acquired by Samsung Electronics in 2017 for $8 billion. The acquisition was a part of Samsung’s technique to develop into the automotive and linked automobile market and it gave the Korean digital big entry to Harman’s automotive and linked applied sciences, together with manufacturers like Harman Kardon, AKG, JBL, and others.
