Mentions of digitization in automotive company filings were 44% higher in Q2 2022 than in Q2 2021.
In total, the frequency of digitization-related convictions between July 2021 and June 2022 was 172% higher than in 2016 when GlobalData, from which our data is drawn for this article, began tracking key issues mentioned in filings. by companies.
When companies in the automotive industry publish annual and quarterly reports, ESG reports and other documents, GlobalData analyzes the text and identifies individual phrases related to the disruptive forces companies will face in the years to come. Digitization is one such topic – companies that excel and invest in these areas are seen as better prepared for the future business landscape and better equipped to overcome unforeseen challenges.
To assess whether digitization is more present in the summaries and strategies of companies in the automotive industry, two measures were calculated. First, we looked at the percentage of companies that mentioned digitization at least once in their filings over the last twelve months – it was 79% compared to 57% in 2016. Second, we calculated the percentage of total sentences analyzed that referred to digitization.
Among the 10 largest employers in the automotive industry, Stellantis is the company that referred to digitization the most between July 2021 and June 2022. GlobalData identified 60 digitization-related phrases in company records based in the UK, 0.6% of all sentences. Ford mentioned digitization second – the issue was mentioned in 0.4% of sentences in company filings. Denso, Continental and Mercedes-Benz are other top employers with high digitization mentions.
Of all companies in the automotive industry, the record released in the second quarter of 2022 that placed the most emphasis on digitization came from Stellantis. Of the 5,068 sentences in the document, 51 (1%) referred to digitization.
This analysis provides a rough indication of which companies are focusing on digitization and how important the issue is in the automotive industry, but it also has limitations and should be interpreted with caution. For example, a company that mentions digitization more regularly is not necessarily evidence that it is using new techniques or prioritizing the problem, nor does it indicate whether the company’s businesses in the digitization have been successes or failures.
In the last quarter, auto companies based in Asia were the most likely to mention digitization with 0.45% of phrases in company filings referencing the issue. In contrast, companies headquartered in the United States mentioned digitization in just 0.19% of sentences.