China Speed: How the European 
automotive industry can keep up

“China Speed” doesn't just mean being faster – it means working differently: more clearly, more boldly, incrementally. European OEMs and suppliers need to reactivate their own strengths while creating structures that enable real speed. The key lies not in copying, but in intelligent translation.

China Speed: How the European industry can keep up – without losing its strengths

“China Speed” requires more than just speed: it requires the ability to make decisions quickly, industrialize consistently, and translate customer feedback into marketable products in short cycles. For European OEMs and suppliers, it is not a matter of copying the Chinese competition, but rather of strategically transferring their own strengths into a faster system. We show how European companies are finding their way to secure market share and remain competitive in the long term.

Starting point: Why “China speed” seems inconvenient for Europe

The debate is often very polarized: “China is faster – Europe must catch up.” This is too simplistic. It is true that Chinese players are rapidly bringing new features, derivatives, and model updates to market. But speed does not come about solely through “more pressure,” but through a system of clear prioritization, short decision-making processes, high implementation discipline, and a closely coupled feedback loop to the customer.

At the same time, it is clear that not every “Chinese recommendation for action” can be adopted without reflection. Some things that work at high speed in China can create friction elsewhere in European structures (regulation, co-determination, historically grown platform and supply chain logic). This is exactly where we come in.

Our approach: First understand, then accelerate

When industrial companies want to “become faster,” many start directly with new methods, tools, or reorganizations. The result is activity without effect. We therefore work according to a clear three-step process: (a) make strengths and weaknesses transparent, (b) translate opportunities into an achievable target vision, (c) change the operating system so that it delivers in everyday life.

Analyze strengths and weaknesses relentlessly

• Where are we winning today? (Brand, quality, engineering depth, creativity)
• Where are we losing momentum? (Committees, platform logic, risk aversion)
• Which processes generate real customer value—and which ones just create internal complexity?

Define the target vision – in clear, incremental stages

• Tailor product and software roadmaps to cycle times
• Streamline variant logic, modularize interfaces
• Replace big bang thinking with short, measurable delivery cycles

Transforming the operating model – not cosmetically, but effectively

• Sharpen decision-making rights
• Reduce committees, shorten escalation logic
• Change KPIs from output to outcome (time-to-market, release cycle, industrialization time)

Four key aspects of implementation

Consistently leverage your strengths—instead of losing them in the sprint

Germany has real competitive advantages in the automotive industry: engineering expertise, quality, safety, brand, and, often underestimated, creativity in problem solving when conditions are complex. “China speed” does not have to mean neglecting or watering down these strengths. On the contrary: those who clearly identify their own differentiating features can increase speed where it really counts (time-to-market, cost-down cycles, software releases, industrialization).

Our approach: We identify the value drivers for each product line/platform and define which elements must remain stable (e.g., quality gates) and where we can consciously introduce variability (e.g., feature bundles, variant logic, test automation, release frequencies).

Generating advantages through “incremental logic” – while still staying on course

Many Chinese companies are strong at incremental development: small steps, rapid releases, learning from data. In Europe, this often fails not because of a lack of ability, but because of logic: too many dependencies, overly rigid planning cycles, too much “big bang” thinking. We, on the other hand, translate strategic ambitions into a time-to-market-ready roadmap: short cycles, clear responsibilities, measurable outcomes.

Important to note: incremental does not mean arbitrary. It requires a robust North Star architecture (product/software/electrical/electronics) and a setup that is both “fast” and “secure”: standardized interfaces, modular building blocks, continuous validation – and governance that enables rather than hinders decision-making.

Addressing culture and weaknesses: courage, risk-taking, and decision-making skills

A common bottleneck is not technology, but risk aversion: investments are triggered too late, decisions take too long to prepare, and responsibility is too often shared. This can be explained historically (high quality standards, complex supply chains, political stakeholder landscape), but it is a disadvantage in competition.

We make these patterns visible and translate them into concrete levers: clarifying decision-making rights (who can decide what and when?), streamlining committees, shortening escalation paths, setting targets in such a way that teams are empowered to act. This creates momentum through direction – not through additional actionism.

Learning from other industries: What pharmaceuticals (and others) have done better

The pharmaceutical industry in particular shows how to build speed in highly regulated environments: clear phase logic, strict prioritization, rigorous portfolio management, and above all, evidence-based decisions. Applied to the automotive industry, this means less competition of opinions and more data-based control along the value chain (development → industrialization → production → market feedback).

We use benchmarks from China not as a blueprint, but as a source of inspiration: Which principles work in complex systems? And how can they be pragmatically integrated into the reality of OEMs and suppliers?

How we provide hands-on support 
(H&C Skills)

To ensure that insights are translated into action, we support implementation throughout the entire process chain:

The core: We combine strategy, operating model, and implementation so that “we need to become faster” becomes a measurable competitive advantage.

Conclusion

“China Speed” is a wake-up call – but not an invitation to copy. Success comes to those who hone their strengths, prioritize the right levers, and establish a system that makes decisions faster and delivers continuously and incrementally without compromising quality and brand.

If you are a board member or manager currently evaluating how to secure market share and accelerate your organization's competitiveness, let's talk. Together, we will analyze where speed is being lost today, which levers will have the greatest effect, and how you can turn this into a robust, actionable program.