Detroit automotive strategists are underachieving. The recent crisis has hit the American market and the Big Three, but Detroit has never lost its importance to the industry. The high concentration of carmakers, tier one and tier two suppliers and the presence of all the market analysis and insight companies speak for themselves. Detroit is a technical center like no others and the area concentrates some of the best professionals, best engineers, analysts and executives in the industry worldwide. A situation that provides a unique role to the capital of the automotive industry. No strategic decision worldwide can be made without an email or a phone call to someone in Detroit.
In the Automotive industry, operational decisions are made locally and every region needs to care for its product, its market and its sales targets. History has proven operational decisions made far away from the concerned markets result in wrongdoing. Managing Opel from the US or Volkswagen of America from Wolfsburg have led to major growth issues for both. On the other side, strategic decisions are made from the companies’ headquarters worldwide, most of the times with input from Detroit-based leaders. Therefore, the industry in Southeast Michigan has the responsibility to be less American-centric.
The region benefits from a wide range of citizenships and competencies to provide the industry with international perspectives. For Detroit to sustain its competitive edge, the companies need to capitalize further on these talents and skills. This is a key point to enhance achievement in the strategic influence of the city, especially in this dynamic time. As the automotive market evolves in cycles, Detroit must build upon its already established foundation of strategic influence. This requires a deeper and more efficient market intelligence; more consideration for overseas potential and leverage; and a strong ability to seize opportunity of improving, disrupting and creating the worldwide automotive industry.