Post by EDAG Group

CHEAP ENGINEERING IS EXPENSIVE // The automotive industry is learning that lesson right now. For years, engineering services were increasingly treated as a global sourcing exercise. Lower hourly rates became the benchmark. More offshore delivery became the expectation. But reality is more uncomfortable. You cannot transfer decades of vehicle development expertise overnight and expect the same outcome. Complex engineering capability is built through years of project experience, system understanding and interdisciplinary collaboration. That matters now more than ever. OEMs are expected to reduce costs while accelerating software development, shortening time-to-market and managing geopolitical uncertainty at the same time. This changes the role of engineering partners fundamentally. The decisive factor is no longer pure capacity. It is the ability to combine global scalability with real engineering depth. In their interview with Automobil Industrie, EDAG Group CEO Harald Keller and CFO Holger Merz speak openly about margin pressure, international competition and why engineering quality will become a stronger differentiator again. One statement captures it perfectly: “Decisive is not the mass, but the class.” Read the full interview here (German only): https://lnkd.in/eghxq4rg