"We must find answers to the many structural changes"

Simon Motter: A recurring theme was - as was to be expected - the resilience of companies and societies in times of growing uncertainty. The keyword BANI, which stands for Brittle, Anxious, Nonlinear and Incomprehensible (Editor's note: see note below the interview), was mentioned just as often as the discussion about Donald Trump's re-election. Of course, the situation of the automotive industry in Germany and Europe was also a focus. Many of my conversational partners were also concerned about the increasing number of extreme weather events. These phenomena force us to continuously rethink and adapt our strategies for adaptation and crisis management.

Simon Motter: Above all, we need to find answers to the many structural changes that are happening around us as logisticians. I would like to give you two examples:

Just look at the technological change from combustion engines to electric vehicles. Not only does the weight of the vehicles change a little, but the logistics for the components and parts also change a lot more. Batteries are dangerous goods and heavy goods and can therefore only be transported efficiently by rail - so it is important to be well positioned for the future with all the hurdles and challenges that we are currently experiencing. We are redesigning entire supply chains and transport chains for this technological change.

But geopolitical shifts also require adaptation in logistics. Higher tariffs or possibly even import restrictions affect global trade and logistics chains, not to mention the restrictions resulting from armed conflicts. It is important to develop concepts that allow us to react quickly to changes without soaring costs.

Simon Motter: Unfortunately, in my opinion, there is no miracle cure for such a complex network of challenges. What helps us as a team to manage this complex battle, however, is to use a good control methodology to keep a close eye on the multitude of short-term and long-term factors that influence us and our network: This ranges from daily stand-ups on the operational situation of the day, to tracking tactical topics in an established committee structure and OKR tracking (Editor's note: see explanation below the interview) to the systematic identification of long-term levers and derivation of fields of action in our logistics network.

Simon Motter: For all of us in automotive logistics, it will be more important than ever to develop creative and new concepts. We will not be able to answer new questions with old recipes. Information in the supply chain and in the organizations of the partners involved must flow even faster than before, because the respective situation can change more quickly and unexpectedly than before. It will also be important to no longer just think in terms of the usual flexibility limits for transport volumes, but to have worked out concrete scenarios from the outset that can then be used depending on the situation.

I advise everyone to see the changes around us as an opportunity to change and renew ourselves. In my opinion, the companies that tackle these changes quickly and courageously will be the more successful ones in the long term.

Simon Motter: Anyone who knows me knows that climate protection is important to me. So here are two thoughts on this:

Extreme weather events are increasing due to global warming, such as the tragic floods in Spain in 2024 or the hurricane season in the North Atlantic, which is getting stronger every year. This means longer delivery times and less predictability in transport flows. As a result, crisis management is a core task and, unfortunately, now a regular task that has to function perfectly.

On the other hand, of course, we are also partly responsible for global warming and therefore bear responsibility for reducing our greenhouse gas emissions. More investment in CO2 reduction in logistics is necessary to achieve the goals of the Paris Climate Agreement. Technologies such as BEV trucks are in the starting blocks and energy sources such as HVO (hydrotreated vegetable oil) and BioLNG (liquefied natural gas - renewably produced, liquefied methane), which we see as interim solutions in the Volkswagen Group’s logistics, are already more widely available. However, the infrastructure, especially for BEV trucks, must grow much faster. We must find clever concepts where it is already – or at least almost – economical to gain experience with the technology. Because in the long term, the use of electric trucks is the most important lever for reducing CO2 emissions in road transport (Editor’s note: Please observe the note below the interview).

Note on BANI model: The BANI model is made up of the terms Brittle, Anxious, Non-linear and Incomprehensible. The concept was developed to illustrate current developments in the world. The BANI model offers a new perspective on the challenges - described with the terms fragility, anxiety, non-linearity and incomprehensibility - that companies and people face today. The model helps to understand the complexity and uncertainties of the modern working world and offers approaches to dealing with these challenges.

Note on OKR tracking: "OKR" stands for "objectives" and "key results". Objectives are goals that a company sets for itself. Key results are measurable results. Put simply, OKR is a management method for teams and individuals that allows them to track progress, create alignment and encourage commitment to measurable goals.

Note on commercial vehicles: In addition to BEV trucks, trucks with hydrogen fuel cells and hydrogen engines are also listed as zero-gram vehicles in fleet regulations. The VDA is committed to ramping up this. In addition, the AFIR (see "10-point plan | VDA" and the policy paper "Road transport of tomorrow") sets out requirements for hydrogen filling stations, which is why there is an obligation to build these filling stations and thus the infrastructure.