People Innovation Excellence

Automotive Industry in Germany and in Indonesia

Based on the observation, the strategy that applied by the automotive industry in Germany, especially the Volkswagen group, they applied Future oriented strategy. Not only that, they made the product all based on five years ahead oriented, for example, they were preparing their product for euro seven standardization while actually not even finished announce by the government.

The main strategic that they used is innovate in the product even though actually for the regulation and procedure, actually Germany still using the old ways systems. Like everything has to be printed and has to follow order. For example, if the new engineers team, or R&D team want to make new innovation, they have to make the sketch, then pass the sketch to the management (based on the procedural process) until get to the top executive then the innovation will get approve. That kind of thing in German company will take a lot of time, that’s why they always prepare everting along way before the schedule time.

For the management site, since the scandal of emission arise two years ago, the management style now become more open, meaning that they more in touch with their employee and trying to make the employees get involved in any decision making that made by the executive. They are trying to make new working environment condition which still has professionalism like what Germany used to do but there are no more afraid feeling like what they feel when the old CEO leading them.

While for Indonesia, since we just only a place for manufacturing, assembling the part, there is no such strategy. The localization in here only meaning to use the workers which is from the place of the manufacturer. For example, if the manufacturer is in Bekasi, that is mean, there are certain amount of the employees of the manufacturer has to come from Bekasi. Not only that, now there is also some regulation made by the president of Indonesia, which is the automotive industry, has to use Indonesian product for their car. But since in the technological thing in Indonesia especially for the automotive side, not yet as good as the European country, so for the localization of the part only used or followed by the Japanese car manufacture, but the European still using the part which is coming from their supplier.

The big differences from the strategy site in this industry is the innovation oriented. Our industry does not based on future oriented, they only think about the short term orientation, it can be seen by how they used outsourching employeee rather than using real employee which need to be trained.  Our automotive industry do only based on what the company asked, they do not make such big innovation. In conclusion, our automotive industry more likely is a passive industry, which only open because of our standard wage is low and we have quite a lot of workers below standard in education that can be paid low.


Published at :
Written By
Scherly H
LS-S2 | SoBM/IBM
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