Capgemini launches new AutomotiveConnect Service for Suppliers
Capgemini, one of the world's foremost providers of consulting, technology and outsourcing services, has announced the launch of AutomotiveConnect for Suppliers. The new holistic service is designed to help Tier 1 suppliers in the car manufacturing industry to adopt global processes for industrialisation, encourage innovation and enable a better use of data to improve profitability.
Capgemini’s AutomotiveConnect for Suppliers, leverages its broad consulting and deep technology expertise with focused services in three specific areas:
• Industrialisation and Agility - helps suppliers to implement global processes at manufacturing plants, engineering centres, and sales offices, responding to the urgent need for standardisation. It will also help generate efficiencies without sacrificing local requirements or the speed necessary to meet the requirements of Original Equipment Manufacturers (OEMs).
• Innovation and Change - supports the adoption of new business models and technology innovations to enable the development of new products brought to market at speed and cost-efficiently. These services help suppliers design and transition to new processes that take a new idea from concept to sale as fast as possible and ensure innovation has a direct positive impact on the bottom line.
• Insights and Action - helps suppliers to secure a real advantages from an exponentially growing pool of data, generated by internal manufacturing operations and potentially every connected car part that regularly transmits data. Collecting, evaluating and analysing this vast amount of real-time data and turning it into insights empowers suppliers to achieve new levels of performance and develop new products and services.
Jeff Augustin, CIO of Johnson Controls, a global multi-industrial company said: “We chose Capgemini as our systems integrator because of their knowledge of business processes, culture, robust project management and global expertise and experience. Capgemini continues to be a strategic partner for us at Johnson Controls as we value the fact that they work with us as a ‘badgeless’ organisation, operating with us as partners rather than vendors.”
Kai Grambow, Global Head of Automotive, Capgemini said: “The automotive industry is being fundamentally remodelled by exciting but also highly volatile change. Tier 1s find themselves at a crossroads and are looking to step up as true partners with car manufacturers in shaping the future of the car and automotive services. To be in a position to establish market leadership, Tier 1 suppliers must prepare for a challenging balancing act between the opposing demands of cost efficiency and innovation experimentation that involves iterative development and rapid deployment.”
Capgemini’s AutomotiveConnect for Suppliers is an extension of its AutomotiveConnect for OEMs, which was launched in January 2015 to support car manufacturers. Both offerings will be serviced by the company’s Automotive Insights Laboratory, where a specialised team of consultants, analysts and data scientists collate and dissect data in real-time to provide customer insights and predict future consumer behaviour.
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”