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IESE and SEAT join forces to evaluate key factors of electro-mobility in Spain
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IESE-and-SEAT-join-forces-to-evaluate-key-factors-of-electro-mobility-in-Spain  • 70% of Spain's daily driving distances can be addressed with electro-mobility

• R&D investment and collaboration between public and private sectors essential for introduction phase of e-mobility

• Over 60 Executive MBA students participated in the 'SEAT e-mobility Project'

The prestigious business school IESE and Spanish market leader SEAT joined forces to evaluate the key factors in e-mobility in Spain. During the last three months, over 60 students of the Strategic Operations course participated in the 'SEAT e-mobility Project'. The course was taught by Professor Marc Sachon within IESE's Executive MBA programme.

This project gives students an excellent opportunity to analyse the effects of e-mobility on the car industry's value chain and evaluate the possible scenarios in the development of electro-mobility in Spain.

The work teams analysed several aspects such as the available and necessary infrastructures, the more expensive purchasing prices with lower energy and maintenance costs, green energy as a fuel source or the use of intelligent networks.

'SEAT e-mobility Project' ideas and conclusions

All the work groups raised a common point, and agreed that the cost is still quite high. According to TCO studies (Total Cost of Ownership), the higher cost of an electric car can compensated, in a period of between five and nine years, by savings in lower energy costs and thanks to higher powertrain efficiency.

This ratio strongly depends on the evolution of the fuel price and taxes and on the price reduction of the more expensive components of the electric car, such as the batteries or the powertrain.

Current public grants to incentivize the purchase of electric cars are not sufficient. In order to develop electro-mobility to a business model for Spanish companies, further investments in R&D are required.

Regarding to the typical daily driving distances in Spain, and according to the conclusions presented by the students, up to 70% of the mobility requirements can be met by electro-mobility. On the other hand improvements in infrastructures are needed for the optimum development of electro-mobility in Spain because currently this topic is considered to be a physical and a psychological obstacle for the number of electric cars to grow.

An opportunity for Spain

Green or sustainable energy initiatives must be aligned with the implementation of e-mobility in Spain as a key aspect for reducing the country's energy dependence. Electro-mobility has an impact on the entire value chain and, when focussing on key technologies and additional services, can potentially generate new jobs.

Strategic alliances among major industrial partners and the key role of the Public Administration are considered to be the best way to develop e-mobility.

Standardisation is a key factor for investment and for guaranteeing the efficiency of the needed infrastructures and technologies.

Collaboration between the University and the Company

Eight research and work groups participated in the 'SEAT e-mobility Project' under the guidance of Professor Sachon and the full collaboration of SEAT's e-mobility team. The Spanish company counts on a team of engineers and professionals devoted to promoting electric mobility, led by Dr. Matthias Rabe, vice president for R&D, and Dr. Tino Fuhrmann, responsible of SEAT's e-mobility.

The 'SEAT e-mobility project' aims to facilitate an exchange of ideas concerning the future of mobility and encourage debate among those who in future generations will be our next business leaders.

In a complicated market environment such as the one we are currently experiencing, this scenario provides a unique strategic opportunity in order to set a course for future success. The company therefore considers invaluable this exchange of views and ideas with IESE's E-MBA operations management course.

SEAT is the only company in its sector with the full-range capacity to design, develop, manufacture and market cars in Spain. A member of the Volkswagen Group, the multinational has its headquarters in Martorell (Barcelona), exporting approximately 75% of its production to 72 countries. SEAT is the market leader in Spain, and in 2010 reached a turnover amounting to 4.7 billion euros, with total sales of 339,500 vehicles.

SEAT Group employs 13,000 professionals at its three production centres in Barcelona - Zona Franca, El Prat de Llobregat and Martorell, where it manufactures the highly successful Ibiza and Leon, amongst other models. The Volkswagen Group production facility at Palmela in Portugal supplies the SEAT Alhambra and the factory in Bratislava (Slovakia) manufactures the SEAT Mii.

The Spanish multinational also has a Technical Center, a ‘knowledge hub' bringing together more than 900 engineers whose goal is to be the driving force behind innovation for the number one industrial investor in R&D+i in Spain. In line with its declared commitment to environmental protection, SEAT undertakes and bases its core activity on sustainability, namely reduction of CO2 emissions, energy efficiency, as well as recycling and re-using of resources.

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