03|NoAI,NoFuture:AIwillbethedefiningfactorforcost-efficiency,1speed,andcompetitiveadvantage.WhitepaperAcceleratingautomotivetransformationthroughpartnershipsHowsoftwareandstrategicallianceswillreshapetheglobalmobilitymarketDisclaimerTheopinionsandassessmentsexpressedinthiswhitepaperaresolelythoseoftheauthorsanddonotnecessarilyreflecttheviewsofanyorganizations,partners,oraffiliates.Anyquotesorreferencestoexternalcompaniesareincludedforillustrativepurposesonlyanddonotimplyendorsementoftheassessmentsorconclusionspresentedinthisdocument.Allerrorsandomissionsremaintheresponsibilityoftheauthors.Edition:2025-01-27Preface3PrefaceThekeyelementsfordrivingtheautomotivetransformationareaconsistentcentralizationofthevehicleelectricandelectronic(E/E)architecture,astrategicshiftfromproject-drivenexecutiontoaproduct-centricmindset,aswellasdecoupled,modular,andscalablesolutionsforbothhardwareandsoftware.Weneedtofocusonunderstandingandmeetingtheneedsofourcustomersbysteeringourofferingssystemically.Nevertheless,therealgame-changerforasuccessfultransformationliesinthecreationofecosystemsandforgingofstrategicalliancesthatgobeyondtraditionalnetworks.Masteringtoday’scomplexityisnolongersomethinganyonecanaccomplishalone.Overthepastdecades,ourindustrytriedmanydifferentapproachestorealizingthe“software-definedvehicle”.However,thecomplexityishigherthanweallexpected,andthetippingpointremainsanelusiveidea.Totrulyleveragethebenefitsofsoftware-definedmobility,wemustadoptajointapproachwithcross-industrypartnerstoacceleratetheautomotivetransforma-tion–anapproachthatkeepspacewithoursoftware-drivenenvironment.ThishasbecomemoreimportantthaneverinthefaceofadvancementssuchasgenerativeAI,whichfurtheracceleratethepaceoftechnology,particularlywhenitcomestoautomateddriving.AtBosch,wevaluethepowerofpartnerships.Thatiswhyweareactivelybuildingalliancesthattranscenddifferentindustries–tonotonlymasterthistransformation,buttoexpediteit.Thiswhitepaperisbasedonourextensivediscussionswithpartners,ecosystemleaders,andkeystakeholdersfromacrosstheautomotivelandscape.Together,theseconversationsilluminateapathforward–onedefinedbypartnership,innovation,andasharedpurpose.Weinviteyoutoexploreourperspectiveaswecollectivelyshapethefutureofmobility.ChristophHartungPresidentofCross-DomainComputingSolutionsRobertBoschGmbHExecutivesummary4ExecutivesummaryTheautomotiveindustrystandsatacrossroads.Despitethebillionsinvestedinelectrification,softwareinnovation,andautomateddriving,theprofitableandsustainabletransformationremainsincomplete.Foundationalshiftsmustbeprioritizedovertemporaryhypes.Ourunderstandingisbasedonextensivediscussionsconductedwithvehiclemanufacturers,system-on-chip(SoC)suppliers,hyperscalers,andothereco-systemplayersinanefforttocapturetherealpainpointstheycurrentlyface.Thesehighlightfourkeychallengesthatarereshapingtheindustry:▪Hybridglobalization:geopoliticaltensionsareforcingtheadoptionofstrategiesanddefinitionoflocalizedsolutions,whichisincreasingecosystemfragmentation.▪Costandspeedbenchmarks:Chinesevehiclemanufacturersandsuppliersaredominatingthemarketwiththeirsuperiorcoststructuresandrapidexecution,therebychallengingtraditionalplayers.▪Intensifyingcompetition:start-ups,techgiants,andcross-industryentrantsarechallengingincumbentsfortheirleadership.▪Transformationimpactsprofitability:yearsofinvestmentinelec...