Business model of the combustion engine

  • Project Duration: 08/2022 - 11/2022

In view of dwindling sales markets, the profitability of combustion vehicles is being modeled.

The transformation of the automotive industry is in full swing. The phasing out of the combustion engine is being discussed in most of the major international sales markets. For manufacturers and suppliers, the opportunities to generate profits with combustion vehicles in the future are diminishing.
As early as February 2021, around 40 percent of all combustion vehicles exported from Germany went to countries that intend to ban the sale of gasoline and diesel powered vehicles from 2040 at the latest. Within the next year, further countries decided to say goodbye to the combustion engine. In April 2022, the relevant share of German exports was 80 percent.  
Together with the Boston Consulting Group (BCG), we therefore want to investigate how long the development and sale of combustion vehicles will continue to be profitable for German automakers. The basis for this is modeling the business case of an exemplary car manufacturer depending on the global sales markets.

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