Are You Surfing or Drowning? How Well Did You Cope With Change?
“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.” – Peter Drucker
When we first published this blog 18 months ago, it was clear that the automotive industry was grappling with an unprecedented level of change. That reality has only intensified. Today, OEMs face a storm of competing priorities: meeting EV sales targets, responding to legislative pressures, absorbing new cybersecurity regulations, and managing surging consumer expectations. It’s no wonder many feel like jugglers with too many balls in the air.
In fact, we’re seeing more examples of organisations struggling to stay afloat than riding the wave. Some are drowning in complexity, paralysed by the sheer volume of operational and strategic challenges, while others scramble to patch holes in the hull rather than reimagine how to sail entirely.
Mental Overload and the Blurred Big Picture
OEMs are facing simultaneous and competing demands. The push to sell a mandated percentage of EVs, keep factories running at volume, manage costs, and stay compliant with fast-evolving regulations, can leave little bandwidth to step back and see the bigger picture.
While the temptation is to focus solely on survival, this approach risks missing out on the very opportunities that will determine who thrives in the long term. Small innovations—such as more personalised consumer services or new collaborative partnerships—can be deprioritised because of today’s operational firefighting.
This is where the concept of intentional leadership becomes critical. As my colleague Paul explores in a recent vlog, OEMs need leaders who can rise above the daily noise and steer their organisations towards long-term relevance. It’s no longer enough to rely on inherited capabilities or historical brand reputation. The industry needs leaders who will reshape behaviours, focus on customer intimacy, and foster ecosystems that stretch well beyond traditional manufacturing.
From Siloes to Survival Collaborations
Since the original blog, we’ve witnessed a growing trend of OEM groups moving from siloed operations towards greater internal collaboration. Large automotive conglomerates are starting to pool expertise across their brands to boost efficiency and share capabilities.
Groups like Geely (Volvo, Polestar, Lynk & Co, ZEEKR) or Stellantis (Peugeot, Fiat, Citroën, and others) are rethinking how they structure their businesses. One brand might lead on battery platforms, another on connectivity, and another on agency model experimentation. These collaborative strategies are no longer optional—they are now critical survival tactics.
This pattern of consolidation is playing out on a larger scale as well. Recent reports highlight possible merger discussions between major Japanese brands including Honda, Nissan and Mitsubishi underscore a sector-wide recognition: the old ways of working aren’t enough. Although these specific merger talks might have changed direction, they highlight the need to keep pace with disruptive entrants and global shifts, even legacy players are realising they must fundamentally rethink their alliances and business models.
Crisis as a Catalyst
The common adage still holds: companies emerge stronger from crises when they act decisively and rethink old assumptions. The current pressure cooker facing OEMs is arguably a crisis moment—one demanding bold action, cultural shifts, and leadership capable of navigating complex waters.
Leadership teams must rethink how they make decisions, how they collaborate, and how they balance day-to-day operational pressures with the strategic necessity of change. Unfortunately, the industry’s track record of leading transformation with intent has, so far, been mixed. The proliferation of mergers, acquisitions and partnerships in recent months illustrates both a desire to evolve and a fear of being left behind.
Change Requires More Than Capability
Technological capability isn’t the issue; automotive companies have immense technical prowess. The gap lies in leadership mindset and the ability to inspire cultural change.
The future will belong to organisations that break free from legacy thinking and intentionally lead with a customer-first approach. This means creating business models that don’t just focus on hitting today’s regulatory or production targets, but also foster long-term, sticky relationships with consumers—relationships built on trust, value, and a shared journey through the evolving landscape of mobility.
The truth is, many in the sector are still paddling furiously just to stay above water. But to surf—to really ride the wave of transformation—OEMs need leadership teams that can balance operational demands with the ability to seize the bigger picture.
As Drucker’s words remind us, the most dangerous thing in times of turbulence isn’t the chaos itself—it’s clinging to outdated mindsets when bold, customer-led leadership is what’s needed most.
Catch up With the Rest of This Series
- Customer intimacy and the rise (and retrenchment) of the agency model
- Who still wants to own a car?
- Are cars still poised to become the new smartphone?
Let’s connect
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