Report from the IBA Automotive and Mobility Services Conference

Anna Dabrowska

Wolf Thiess, Warsaw

anna.dabrowska@wolftheiss.com

This year saw the fifth edition of the IBA Automotive and Mobility Services Conference that is one of the three annual conferences organised by the European Regional Forum (ERF). The conference was co-chaired by Massimo Calderan,[1] Anna Dąbrowska,[2] Corina Haut,[3] Oliver Künzler,[4] Schirin Seibold-Rueger[5] and Viktória Szilágyi.[6]

We were happy to see 110 participants in Munich on 27 March, in the unique location of Upside East for a day of discussions concerning the very challenging times that the automotive industry is now facing. Attendees had a chance to ease into the conference at the welcome cocktails which took place the evening before and it was good to see many familiar faces showing that the conference is becoming a familiar item on the IBA calendar.

The day of the conference (27 March) started strong with an interview conducted by the amazing Christina Kunkel, editor in the economics department of the Süddeutsche Zeitung, whose focus is on the automotive and supplier industry. Christina spoke with Joachim Franz, head of the automotive division of Microsoft in Germany about the industry’s challenges and transformations (the move to electric drivetrains, the rise of Chinese competition, the transition to software-defined vehicles and the rapid advancements in AI and the significant investment and complexity required for each of these shifts), including geopolitical shifts, the move to electric vehicles, software-defined vehicles, artificial intelligence (AI) and autonomous driving being held back in Europe by regulatory hurdles, emphasising the need for resilience, agility and strategic partnerships.

Our first panel, including Janett Fahrenholz from Volkswagen, Maria Carmela Macri from IVECO, Anja Misselbeck from Catena-X and Moritz Wefelscheid from NIO Europe and co-moderated by Schirin Seibold-Rueger from Robert Bosch and Irene Picciano from Portolano Cavallo, pointed out that the industry is grappling with a ‘regulatory tsunami’ of new legislation, including the AI Act, the Data Act and the ESG regulations, creating significant burdens for legal teams and the industry as a whole. The panellists discussed the impact of these changes on day-to-day operations, the need for new governance structures and the role of digital platforms in navigating this complex landscape. The EU’s ambition to be a regulatory pioneer, the potential risks and liabilities arising from these regulations and the interplay between Environmental, Social and Governance (ESG) initiatives and competition law were also discussed. Finally, the discussion touched on the challenges of regulatory uncertainty, the Green Claims Directive and the importance of balancing compliance with innovation and competition.

The next panel very smoothly picked up on some of the items pointed out in the first panel to dive deeper into the world of electric vehicles, infrastructure and sustainability. Co-moderated by Viktória Szilágyi from Lakatos Köves and Partners and Moritz Winkler from Yulchon, our speakers (Michael Bueltmann from ABB E-Mobility, Aleksander Rajch from PSNM (Polish New Mobility Association) and Moritz Wefelscheid from NIO Europe) delved into the practical aspects of electromobility beyond the legal framework. The discussion explored the current state of the automotive industry’s transition to electromobility, considering various trends, regulatory challenges and technological advancements. The panellists shared insights from their respective fields, covering topics from battery technology and charging infrastructure to policy implications and market dynamics. The discussion emphasised the need for a holistic approach, considering not only the engine but also digitalisation, shared mobility concepts and the broader energy ecosystem.

The third and final panel once again hit the topic of challenges that are hitting the industry and our speakers (Valentina Caticchio from Volvo Group Italia, Laura Kronen from Berylls by AlixPartners, Arnd Meier from BMW and Christian Saxenhammer from Saxenhammer & Co Corporate Finance GmbH) shared their daily internal challenges, particularly in Europe, amidst restructuring and transformation. Key drivers for success include stability in targets, significant investment in future technologies, radical efficiency increases in research and development (R&D), upskilling and talent retention, real collaboration across the value chain, localisation and structural cost reduction. The volatile global landscape, with factors such as electrification, deglobalisation and new competition, creates a ‘perfect storm’ for the industry, requiring speed and flexibility. The panel also discussed the need for reliability and predictability in legislation. The future of the European automotive sector is uncertain, but speed and flexibility are crucial for survival. Consolidation of the supply side is expected, and the importance of software talent will increase. The panellists talked about the challenges of attracting and retaining qualified staff, particularly mechanics and drivers, and the need to address work-life balance and diversity, equity and inclusion (DEI) concerns. The generational gap and the need for upskilling and reskilling were also highlighted, along with the importance of partnerships within the mobility ecosystem. The co-moderators of the panel were Nadine Hartung from Raue and Oliver Künzler from Wenger Plattner.

To keep our audience engaged, the final panel was preceded with a hot topics session during which our participants (including most of our industry speakers) sat in small groups dissecting first, the (European) automotive industry crisis, and secondly, AI in the automotive industry. Following 90 minutes of very engaging talks, our table facilitators provided a short summary of the issues raised during their discussions, which included over-regulation and its impact on costs and competitiveness, tariffs and consumer protection laws, the shift from dealership to agency models and a transformation to electric vehicles (EVs) and infrastructure challenges as some of the issues adding to the current crisis. For the AI debate, the discussion included implications for product safety, liability and warranty management, the competitiveness of European brands compared to non-European brands and the need for partnerships between automotive and tech companies.

For the last point on our very intensive agenda, we remained in the industry, but approached it from a completely different angle and invited the amazing Emilie Hobrücker, lead designer UX Lighting at BMW, who took us on a trip through the years of BMW design and showed us that there are still many new things to create in the world of automotive lighting design.