The European Finished Vehicle Logistics Cost Index (FVL), published by PwC, reveals that the sector’s costs “continue to be well above pre-crisis levels, with no signs of improvement,” according to The Association of European Vehicle Logistics (ECG).
In this context, ECG warns that the “financial pressure” on the finished vehicle logistics sector “is high.” “In order to remain competitive and prepare for the transformation ahead, the sector is intensifying its work to find technical solutions that increase efficiency,” adds ECG.
In the words of ECG President Wolfgang Göbel, “profitability must be maintained to be able to make the necessary investments. Costs continue to grow in all areas, so we can only achieve a reduction in costs through efficiency improvements, whether by eliminating inefficiencies in the supply chain or by leveraging new technologies to increase productivity.”
“Improving efficiency is key to responding to financial difficulties while remaining competitive enough to drive transformation, and this requires close collaboration across the industry,” adds Göbel.
At the ECG conference to be held in Amsterdam on October 16 and 17, the finished vehicle logistics sector will focus on intensifying work to find technical solutions that increase efficiency in the supply chain.
The conference theme will be Changing Technology in a Changing World: The Power of Efficiency Through Innovation in Finished Vehicle Logistics and reflects how ECG has proactively addressed “the main challenges facing the industry through transparency and standard setting,” emphasizes the association.
The conference will kick off with a keynote speech by Skoda Auto CEO Klaus Zellmer, who will explain how Skoda has become a profitable brand within the Volkswagen Group despite the difficult market environment. Zellmer’s leadership provides an inspiring example of how to navigate adversity in difficult markets and achieve business success.
Beyond internal efficiency improvements, the industry is exploring new business opportunities in military and defense logistics. The expertise of finished vehicle logistics companies in handling heavy equipment, managing complex international operations, and ensuring reliability under pressure puts them in a good position to support defense logistics while opening up potential new business areas.
Major General Ulf Haeussler, Director of the NATO Operations and Planning Division, will address this topic, highlighting how closer cooperation between logistics and defense sector stakeholders can strengthen resilience in a rapidly changing world.
At the conference, senior executives from Renault and Volkswagen will present projects that will demonstrate the potential for increased efficiency, showcase new technologies in practice, and outline initiatives such as autonomous driving in logistics.
