Executive Summary
Transformation is often portrayed as a radical break with the past. AVL’s experience suggests the opposite. Faced with one of the biggest technological shifts in the automotive industry, the company did not abandon its engineering heritage. Instead, it applied decades of expertise in simulation, testing, and development to entirely new mobility technologies. Successful transformation, according to CFO Dr. Yorck Schmidt, begins by asking not what should be left behind, but which existing capabilities can create value in the future.
When industries change fundamentally, many organisations assume they must reinvent themselves from scratch. In reality, the strongest transformations often begin with capabilities that already exist.
For AVL, the transition from combustion engines to electric mobility, hydrogen, fuel cells, software, and new energy systems was not driven by abandoning its history. Instead, the company recognised that its real expertise had never been limited to engines. Its core strengths lay in engineering methods, simulation, testing, and solving complex technical problems—capabilities that remain valuable regardless of which propulsion technology ultimately prevails.
This perspective has allowed AVL to diversify into new mobility technologies while maintaining a clear strategic identity. Rather than betting on a single technological outcome, the company invests in the underlying capabilities that enable customers to innovate across multiple pathways. Combined with the long-term perspective of a family-owned business, this approach has created the stability to invest consistently in research, partnerships, and technological leadership, even during periods of significant market uncertainty.
The lesson extends well beyond the automotive industry. Companies facing disruption should resist the temptation to define themselves by yesterday’s products. Instead, they should identify the capabilities that made them successful in the first place and ask how those strengths can solve tomorrow’s problems.
Key Takeaways
- Lasting transformation builds on capabilities rather than products.
- Long-term investment in innovation creates strategic resilience.
- Family ownership can provide the patience required for technological transformation.
Continue the Conversation
This article explores one of the key themes discussed with Dr. Yorck Schmidt, CFO of AVL. The full conversation also covers the future of mobility, software-defined vehicles, hydrogen, family ownership, finance leadership, and managing long-term innovation in a rapidly changing industry.
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