"Yesterday's Recipes Won't Solve Tomorrow's Problems"

Welcome to Issue #69 of The German Autopreneur!

Marc-Oliver Nandy spent 27 years at Mercedes. From trainee to director. Germany, Japan, China – he saw it all. The golden years. The crises. And now, the biggest transformation in automotive history.

He left Mercedes a few weeks ago. In my podcast interview, he opens up for the first time about his experiences across nearly three decades.

Today, I'm sharing his 12 most important lessons. The complete 75-minute conversation is in German, but I'll link to it at the end with English captions available.

Marc-Oliver Nandy studied mechanical engineering. He started as a trainee at Mercedes in 1998. His career took him through nearly the entire automotive value chain: development, production, sales, supply chain.

In Japan, he served as Vice President during the 2008 financial crisis. He was still there when the tsunami hit in 2011.

As Executive Vice President in China in 2016, he witnessed the country's rise as an automotive powerhouse.

Later, he led digital transformation in Mercedes' marketing and sales. His final role: Director for the global supply chain of Mercedes Vans.

After 27 years, he left the company.

His 12 Key Lessons

1. The Moment Everything Changed

In 2016, Marc visited a Mercedes dealer in Zhangzhou, China. The investor took him for a drive: "We drove along a newly built road for 10 minutes. All I saw on both sides were construction sites for battery factories."

The investor showed him plans for massive charging infrastructure expansion across China. Marc's thought at the time: "If they really pull this off, it'll be a revolution."

They did. The battery factories were built. The charging points installed.

"After COVID, Chinese manufacturers came back with products that caught us completely off guard."

2. Software Is the Biggest Challenge

German automakers come from a hardware world: "The business model was always based on great chassis, rigid bodies, perfect mechanics."

Software was an afterthought, never the main product.

But competition moves "many times faster" now. One key reason: different work cultures. "When you can develop 365 days a year, you're obviously faster than with seven-hour days and 30 days of vacation."

3. Germany Lacks a Healthy Mistake Culture

Companies often treat mistakes like crimes:

"When someone makes a mistake, they're immediately guilty and punished. We waste enormous time hunting for someone to blame."

China takes a different approach. "Innovation happens through making mistakes, learning from them, and trying again."

4. Leadership Teams Are Too Similar

Despite global operations, German automaker leadership remains narrow:

"Look into any boardroom. What you see is mostly male and mostly European."

The problem: "Someone who grew up in Germany and only took business trips to China can't truly understand customer needs there. It takes years to really understand a culture from the inside."

"We need real diversity in management. Including Chinese and Indian board members."

5. Learning from Japan and China

Marc worked in both countries. What he found:

From Japan: Incredible discipline and continuous improvement. "The dedication of Japanese employees is impressive. Doesn't matter what job they have."

From China: Speed and hunger for experimentation. "Chinese teams were always eager for success, excited about new things. They enjoyed innovation and competition."

His conclusion: Germany sometimes lacks "Japanese discipline" and "Chinese forward-thinking."

6. Supply Chains Are Going Local

"We overdid globalization. Some parts circle the globe 4-5 times before ending up in a car."

The current trend: "Nearshoring." Having suppliers in the same region or country. This cuts transport routes, avoids customs barriers, increases resilience.

But complete localization would explode costs. "Certain volumes you simply can't produce in high-wage countries – or only at extreme prices."

7. Going Back to Old Management Styles Is a Mistake

COVID brought new work models. Now many are reverting:

"Managers fall back on what they know: 'I used to have my team in front of me, could constantly control what they're doing.'"

This backward step is dangerous: "You don't motivate highly qualified people by forcing them into old presence cultures and micromanagement."

The result: "Top talent is in demand. If work isn't enjoyable anymore, they'll find an employer with more flexibility and better culture."

8. We've Done This Before - We Can Do It Again

"In the 1980s, the Japanese came to Germany. Same panic: They'll destroy us. But German automotive found an answer."

Same story with the Koreans. Now with China.

"Experience shows: Face the competition, seriously look for answers, and you can emerge stronger."

9. Partnerships Need Both Sides to Win

Partnerships are increasingly crucial. But many fail: "Partnerships only work when both sides win."

He recalls the DaimlerChrysler disaster. A "marriage made in heaven" became a "divorce from hell" because the partnership wasn't between equals.

10. Break Free from the "German Mindset"

"We're a bit satisfied with where we are. Maybe even lazy. We hold onto the past instead of looking forward. Just look at how much Germans love their combustion engines."

Too many ideas get killed at birth. "That won't work, too expensive, we don't want to, we can't, we're not allowed to." You hear these phrases constantly.

11. Companies Like Mercedes Still Have Good Cards to Play

"German automakers are well-positioned: They still make good money. Have highly qualified people. Professional processes. Know how to develop, build, and sell cars. Global presence."

The crucial condition: "They must go all-in. Not try solving tomorrow's problems with yesterday's recipes."

12. Three Concrete Steps for German Automakers

Marc's final recommendations:

Radical customer focus: "You need to truly understand your customers. Not just German customers. You need the right features and products in Shanghai, Beijing, Tokyo, and Seoul too."

Innovation as survival strategy: "German manufacturers have one chance: Be the best in technology and innovation. Average won't cut it. Others will always be cheaper, better, with higher volumes."

Diversity in leadership: Different ways of thinking, cultures, and needs must be represented at all management levels. It's the only way to truly understand and serve global markets.

My Take

After talking with Marc, I'm optimistic. We're not at the edge of a cliff. We're at a turning point.

The most important change must happen in corporate culture.

We need courage to admit mistakes and learn from them. Diversity at all levels. Long-term strategic thinking instead of quarter-to-quarter panic.

Transforming the automotive industry is an enormous challenge. But it's also a historic opportunity to reinvent.

PS: The full 75-minute interview is available on YouTube (in German, but you can turn on English subtitles). Worth watching! Marc also shares his recipe for climbing the corporate ladder successfully.

That's all for today.

Feel free to reply to this email with your thoughts.

Until next week,
— Philipp

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