Complexity and cost pressure. The increase in regulations with respect to environmental
and safety standards will raise costs but also increase complexity, as they
need to be managed apart from domestic markets. The growing number of derivatives
serving different vehicle segments and markets based on a single platform also
raises complexity. At the same time, OEMs will have to develop alternative powertrain
technologies for lower-emission vehicles without knowing what will end up being the
prevailing technology of the future. This will require significant investment. Given all
these pressures, plus flat net price development due to less budget available for new
features, it will be more difficult for OEMs to differentiate themselves with new features
while extracting economic value from these forces