Supply chain disruptions. Electric vehicle demand. Computer chip shortages. Infrastructure deficits. The auto sector is facing a host of challenges right now, but it is also the poster child for digital transformation, especially in treasury. Here, two experts from Citi share lessons from leading auto treasuries, which can be applied in any sector looking to become more digital and sustainable.
The 1960s saw traditional societal behaviours thrown to the wind – and kickstarted a revolution in the automotive industry when European car manufacturers began experimenting with mechanical fuel injection systems. This was the first step on a journey towards cars with computerised components.
Today, cutting edge cars run on more lines of computer code than a Boeing 787 Dreamliner. And growth in the electric vehicle (EV) market is only revving up this trend towards digital-first cars, notes Vincent Couche, TTS Sales Head for Industrials, Treasury and Trade Solutions, Asia Pacific, Citi. “Despite the disastrous effect of Covid-19 on lives and livelihoods, not to mention the auto industry as a whole, the momentum behind digitisation and the shift away from internal combustion engines [ICEs] towards EVs has not lost any steam.”
TTS Sales Head for Industrials, Treasury and Trade Solutions, Asia Pacific, Citi