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Automakers Finding Lower Profits in R&D Efforts, Report Says

Increased technology, regulation lowering ROI.

by on Feb.28, 2017

Automakers and suppliers have plowed more money than ever into research and development, but didn't get a great rate of return.

While the auto industry’s investment in research and development has soared in recent years, it generates less profit than it did 10 years ago, according to a new study by Alix Partners.

“The productivity and investment-efficiency improvements that automakers expected from their massive vehicle-platform and modules-based product development don’t seem to have materialized,” the summary of the report noted.

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“Instead, they appear to have been offset by the increased complexity of all the new high technology brought into cars and trucks in recent years,” the report noted. (more…)