Every week, there’s news about OEMs and Tier1s laying off thousands of people to decrease fixed costs. However, they must still deliver and invest in R&D to stay competitive. Here’s how Hashlist can help.
On August 19th, OEM General Motors announced they were cutting over 1,000 jobs in its software & services division. On September 2nd, OEM Volkswagen announced their intentions to close factories and cut jobs in Germany, to hit their target of saving €10B/year by 2026.
These are just two examples in a market that is generally trying to cut permanent jobs and streamline their organizations while transforming to meet customer demands of modern SDVs and EVs.
Amongst these significant job cuts and savings, automotive companies still need to keep delivering to stay competitive and grow their sales. This presents a dilemma: Should you streamline headcount to save costs or increase headcount to increase R&D and sales?
To continue with Volkswagen as the example, VW recently invested €5B into US startup OEM Rivian. This investment was aimed not only at securing a stake in a high-tech up-and-coming EV company, but also to access Rivian's critical software platform, which could be leveraged and merged into Volkswagen, and all its brands.
One might ask how Rivian, which has a headcount of 16,000 people compared to Volkswagen's 600,000 people, can produce a superior software platform. Here are three reasons:
If legacy automakers want to not only survive, but reinvent themselves in a new world where otherwise new EV-makers will dominate, they will need to significantly decrease headcount, streamline their teams, get the top 1% of tech talent onboard, and give them enough freedom to operate.
Hashlist offers a unique way to tackle this challenge: A platform to access a workforce of tens of thousands of the world’s most qualified automotive engineers, all in the cloud, ready to be deployed to projects.
Instead of hiring full-time employees and keeping a high fixed cost, Hashlist let’s companies deploy on-demand contractual resources whenever they need, and only paying for what they use. A “pay-for-play” model.
The Hashlist model differs from traditional engineering firms in that Hashlist doesn’t manage projects. Instead, companies access highly qualified talent resources through the platform, contract them for their own projects, and move on.
For engineers, Hashlist offers an easier way to work on projects that actually interest them. Instead of spending their entire career in the same company, engineers get to join projects that make sense for them, and earn more working as independent contractors. This makes the engineer experience closer to what they would experience in a startup compared to the experience of working in a legacy company.
Since Hashlist has the world’s largest pool of independent automotive contractors and operates on an online marketplace model, companies typically find higher-quality individuals and more competitive rates compared to traditional suppliers.
Does the Hashlist model work? We welcome you to speak with some of the world’s largest OEMs, Tier1s, and development partners that are already Hashlist’s customers, or try out for yourself by contacting us: https://www.hashlist.com/get-started
In the meantime, you can also try our fully online demo (no login required): https://app.arcade.software/share/79qQrj7aFlXhgrbn9PQZ
We are looking forward to meeting you!
