| 9:05 AM EST

Auto & Creative Destruction

“Creative destruction,” or “schöpferische Zerstörung,” is an idea from Joseph Schumpeter, an Austrian-American economist, who had it that there are profound changes that occur when there are new product and process innovations.
#engineer #Volkswagen #oem

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

“Creative destruction,” or “schöpferische Zerstörung,” is an idea from Joseph Schumpeter, an Austrian-American economist, who had it that there are profound changes that occur when there are new product and process innovations.

The simple way to think about this in the context of the auto industry is the classic “what happened to the buggy whip manufacturers after the Model T rolled out?”

The industry is undoubtedly in the midst of a huge wave of creative destruction right now.

A non-trivial bit of evidence in this regard comes from Volkswagen Group, which announced that it is in the process of hiring more than 1,000 IT experts during the next three years—and this must be taken into context: last month the Group announced that it is cutting some 30,000 globally (through attrition).

Clearly, the 1,000, while a fraction of the 30,000 goes to the point that VW understands the importance of the changes it faces.

VWlogo

As Dr. Karlheinz Blessing, member of the Board of Management of the Volkswagen Group, Human Resources, put it, “We are tackling the major challenges of the future with the best people: digitalization, software development, e-mobility, autonomous driving, and mobility services.”

The company is hiring robotics experts, design thinking experts, AI researchers. It is staffing up its Virtual Engineering Lab, Data Lab and Smart Production Lab.

The people are being deployed in Wolfsburg, Berlin and Munich to address Big Data, Industry 4.0, the Internet of Things, connectivity, mobility, and virtual reality.

It is even hiring gamers.

Who would have thought, even a few years ago, that an auto company would hire gamers?

Who would have thought that the auto industry would be undergoing such a radical transformation?

RELATED CONTENT

  • Engineering the Elio

    Elio Motors is something of a brash company.

  • Bill Gates Meets LiDAR

    While there is a burgeoning proliferation of companies that are in the LiDAR space, each with its own take on utilizing laser pulses to create a precise map of its surroundings for purposes of ADAS or full-blown automation, a Seattle-based company has a distinction that certainly sets it apart from its competitors.

  • Hyundai Shops for a Partner to Make Electric Scooters

    Hyundai Motor Co. is looking for a domestic partner to mass-produce the fold-up Ioniq electric scooter it unveiled at last year’s CES show in Las Vegas, a source tells The Korea Herald.