VentureFuel: start-up partnerships accelerate innovation

The digital revolution and the simultaneous move towards zero-emission mobility are creating unprecedented challenges for traditional automakers. Many of these companies have more than a century of expertise in technology areas that could soon become obsolete. As they scramble to position for new mobility and acquire the associated skillsets and expertise it entails, they face a dilemma.

Some may argue that incumbents are best off postponing the hefty investments required for electric vehicles (EVs), automated driving, and connectivity until the market matures. In the meantime, they can continue earning profits on their existing offerings. Others believe they have to give up the prospect of near-term profit and gamble everything on the hope that new technology investment pays off in the future. Neither is particularly attractive. “In boardrooms around the world, teams are trying to decide whether they should move early with new trends and take a short-term hit or just hold out as long as possible and try to catch up later,” says Fred Schonenberg, Chief Executive of strategic partnership firm VentureFuel. “It doesn’t have to be that dramatic.”