Russell Hensley is a Partner within the Automotive Sector for McKinsey & Company. He joined the Detroit Office in October 2002, following 12 years of automotive industry experience primarily in vehicle product development focused on systems engineering and the refinement of noise, vibration, and harshness. He has launched vehicles in Europe, the US, Mexico and Japan, following one specific program from concept to customer in Genk (Belgium), Kansas City (US) and Mexico City (Mexico) and spent significant time in South Korea supporting the product planning leadership for a large Korean OEM. Since joining McKinsey, Russell has worked on developing extensive benchmarks of supplier performance in North America, in particular focusing on purchasing, sales and marketing, and manufacturer-supplier interactions.
What's Sparking Electric-Vehicle Adoption in the Truck Industry?
It’s déjà vu all over again as electric trucks begin to reappear after a hundred-year absence. What’s driving this trend, and do these vehicles make economic sense for dollar-wise trucking fleets? The answers may surprise you.
Cracks in the Ridesharing Market—And How to Fill Them
While ridesharing has evolved into a dynamic mobility market niche, moving beyond its current position will require new thinking. McKinsey & Company’s LUNAR affiliate examined the ways new concepts in vehicle design could expand the ridesharing market beyond its current boundaries.
Webcast: How Design Might Enable The Next Phase of Ridesharing Growth
Ridesharing continues to rise in popularity, with the number of trips growing 250 percent each year as users rack up 500 million miles every month. However, those rides make up just one percent of all vehicle miles traveled, suggesting significant room for growth. Please join us for a discussion of the four-month-long joint McKinsey + LUNAR exploration into the opportunities that ridesharing offers today – before autonomous driving becomes commonplace.
Consistently Boosting Automotive Supplier R&D Performance
Keeping product development capabilities on the ball has become increasingly difficult for automotive suppliers, which face a wide variety of business and technological disruptions. Here’s a chance to learn what best practice players are doing about it, and how their experience could boost your R&D performance.
Assessing the Impact of Autonomous Cars on Aftermarket Parts Sales
The arrival of autonomous vehicles could fundamentally change the relationship people have with their cars, and in the process make vehicular transportation safer and more efficient. This shift will also have an impact on everything from car insurance to the sale of aftermarket spare parts and service. Sizing the potential effect of these changes can help OEMs and suppliers to position themselves to take advantage of the coming changes.
A road map to the future for the auto industry
As automobiles make the transition from mechanical conveyances to computer-driven devices, could some essential elements of what makes a car special become lost in the translation? Find out, as McKinsey maps out the road ahead for the auto industry.
Future EV Battery Costs: Implications
Part 3 of McKinsey & Company's three-part series on future electric vehicle (EV) battery costs focuses on the industry implications of more affordable EV batteries. Research indicates that batteries could become relatively inexpensive compared with today's prices, potentially dropping to USD 200 per kilowatt-hour by 2020. The question is: How quickly can automakers and others integrate new lower-priced technologies into their operating platforms, given typical development cycles of three to five years and product life cycles of five to seven?
Future EV Battery Costs: Building the Bottom-Up Model
Part 2 of McKinsey & Company's three-part analysis of future electric vehicle (EV) battery costs provides details on the "should cost" model used. Successful achievement of the project cost-reduction levels predicted by the model rests upon the industry's ability to reduce future manufacturing/overhead costs, the evolution of component prices, and the future trajectory/pace of commercialization regarding technologies that could increase cell capacities.
Confronting North American Automotive Supplier Challenges
After weathering severe economic storms, the surviving North American automotive supplier industry has begun to rebound. But new challenges loom on the horizon, and three key trends tell the story.
Future EV Battery Costs: USD 200 per kWh by 2020?
An electric vehicle (EV) battery price decline from USD ~600 per kWh today to roughly USD 200 per kWh by 2020 would change the energy storage game – not only for the automotive industry, but also for any sector that relies upon cost-efficient energy storage technology. Part 1 of McKinsey & Company's three-part series on future EV battery costs reveals the results from a "should cost" analysis of energy storage costs.
Sourcing Tooling from Low-Cost Countries
As more automakers consider sourcing their tooling from low-cost countries (LCCs), they need to ensure that they've assessed the full set of risks and benefits that accompany such a move and properly prepared for successful implementation. While purchasing tooling from LCCs can deliver 30 percent in savings, OEMs should understand the total costs and risks involved. Learn more about the eight steps that can help companies stamp-out high tooling costs quickly and effectively.
Tooling Up: Mastering World-Class Tooling Efficiency
Few companies master all elements of tooling cost optimization, but those that do can reduce tooling costs by up to 40 percent. With the opportunity to invest less capital or alternatively, to launch more products with the same level of capital, companies can benefit substantially from an increased focus on tooling-capital efficiency. Find out about the eight strategies that product-focused manufacturing companies can use to dramatically reduce tooling capital expenditures and four reasons why they don't.
The Fast Lane to the Adoption of Electric Cars
Large cities may be the ideal test track for the introduction of plug-in hybrid electric vehicles and battery-only electric vehicles for the mass market. McKinsey & Company research shows that catalyzing the early adoption of these vehicles could take less than most automotive executives and policymakers think.
Creating an EV Ecosystem 3: Policymakers and Consumers
Creating a successful electric vehicle (EV) ecosystem requires support from a broad confederation of partners and stakeholders. Part 3 of McKinsey & Company's three-part series on creating an EV ecosystem examines the roles that public policymakers and consumers can play.
Creating an EV Ecosystem 2: Infrastructure and Service Providers
Part 2 of McKinsey & Company's three-part series on the need for an EV ecosystem examines the roles that infrastructure and service providers can play in supporting EV adoption. Learn how both types of players can take on key roles in the growing EV ecosystem, pioneering new ways to "fuel" and service vehicles.
Creating an EV Ecosystem: Automotive OEMs and Suppliers
If electric vehicles (EVs) are to thrive, they will need support that extends far beyond advanced batteries and robust technology. They will require an EV ecosystem in which many participants work together to support and nurture early EV demand. Part 1 of McKinsey & Company's three-part series on building an EV ecosystem profiles the roles of automakers and their suppliers in designing and offering the right products to the right consumer segments at reasonable prices.
Perfect Fit? Plugging Electric Cars into Megacities
McKinsey & Company research shows how and why battery-powered cars could thrive in large urban environments in the next five years. To make this happen, policymakers and industry players need to clear the way by educating consumers about the benefits and challenges of living with an EV, and provide intelligent incentives to make the market as inviting as possible.
Podcast: Can OEMs Target Green Drivers to Sell Green Machines?
Can OEMs target green drivers when selling green machines? How many car buyers want to go green and what's stopping them? The answers to these and other questions are discussed in a McKinsey & Company podcast presented by its Automotive & Assembly Sector. The results of McKinsey's survey of light vehicle buyers in the pivotal US automotive market reveals surprising insights into consumer purchasing patterns regarding environmentally friendly automobiles. Learn why although awareness of green vehicles is high among light vehicle buyers, this doesn't necessarily "close the sale."
Can OEMs Target Green Drivers to Sell Green Machines?
Can environmentally "green" consumers save the planet? How much (if anything) are they willing to pay for greener cars and which technologies are most likely to gain consumer acceptance? Find out through the results of McKinsey & Company's survey of green automotive purchasing patterns.
Making Cars Electric: How Three Industries will Evolve
It's a safe bet that consumers will eventually swap their gas-powered cars and trucks for rechargeable models. Electric transport, in some form, seems likely to be part of our future. But how long will investors have to wait for the bet to pay off – Years? Decades? Find out as McKinsey & Company examines what the future likely holds for automakers, battery producers, and utilities.
McKinsey Interview: Stefan Knupfer, Director and leader of McKinsey's North American Automotive & Assembly Sector, and Russell Hensley, an Automotive Expert
The debate surrounding greenhouse gas (GHG) emissions and climate change is unlikely to cool down anytime soon. Because of the outsized role the automotive industry will likely play, the Automotive & Assembly Extranet asked Stefan Knupfer and Russell Hensley of McKinsey & Company's Automotive & Assembly Sector in the US for their perspectives on the likely impact of GHG abatement on the auto industry. Read what they said about the differences in GHG abatement solutions across regions in the automotive industry, the prospects for meeting the challenging new industry fuel economy standards, and how "green car" innovations could save the industry from commoditization.
Facing Digital Disruption in Mobility as a Traditional Auto Player
Big changes lie ahead for traditional automotive players as a variety of disruptions upend some old reliable industry success models. Mastering four key dimensions can help leaders win in this new business environment.
Three Surprising Resource Implications From The Rise Of Electric Vehicles
The economic consequences for energy, raw materials, and land may not be what you’d expect.
Charging Ahead: Electric-Vehicle Infrastructure Demand
While more electric vehicles (EV) make their way onto roads in greater numbers every day, one important question remains: where will they all charge? McKinsey runs the numbers and makes the case that charging infrastructure could soon become the industry’s greatest challenge.
The Potential Impact of Electric Vehicles on Global Energy Systems
The good news: the spread of EV probably won’t increase total power demand significantly. The challenging news: It will, however, likely reshape the load curve. McKinsey suggest a variety of ways energy provider can ride the curve successfully.
Making Electric Vehicles Profitable
Electric vehicles (EVs) can cost USD 12,000 more to produce compared to conventional gasoline-powered cars with the same features. Conventional wisdom says OEMs will incrementally make their EVs break-even in the long-term. Alternatively, here are some suggestions for accelerating the industry’s push for profitability right now.
How Sharing the Road Is Likely to Transform American Mobility
The coming transition to shared mobility services could generate up to USD 2.0 trillion in revenues by 2030. The impact this level of change could have on consumers, the auto industry and cities could recast the personal mobility industry for years to come.
The Trends Transforming Mobility’s Future
Mobility as we know it is about to change. A handful of trends will largely determine the benefits—and costs—for business and society.