OEMs make the cars, and captives finance them. Despite serving the same customers, their cost structures run parallel. And so far, initiatives to cut costs, increase sales, or improve experiences have run parallel too.
But this won't work long term because, although the OEM and captive have different jobs, the customer journey and experience remains unified. The only real solution for tackling current and future problems is for the OEM and captive to unify too.
And problems to solve abound. On the revenue side, servitization is the future of industry growth: customers are looking for alternatives to the traditional one-car one-owner mode. They want usage-based options, products in bundles (such as a car plus tailored insurance), seamless online service, and flexible finance packages. On the cost side, automakers and lenders are dealing with more inquiries from customers, fewer employees to handle them, and pandemic-shuttered dealerships. And they are having to invest heavily in electrification too.
However, if automakers and lenders unify – and implement the right digital solutions –they not only have a good shot at cost-cutting to survive the immediate downturn, but they can also board the on-ramp to transformation, enabling them to thrive in a future of autonomous, connected, electric, and shared (ACES) vehicles.