Transfer Pricing and Value Creation

1. S. 362Introduction

The automotive industry is facing one of its biggest challenges. First, the business year 2017 was easy for it after having been confronted with the “Diesel Scandal” and an increasing legal demand for reduction of carbon dioxide emission, asking for more sustainability in the whole value chain. Governments and other stakeholders put high pressure on new forms of (sustainable) mobility, and the Asian automotive manufacturers are catching up with highly connected vehicles to be sold at a lower price than European vehicles. The industry is facing one of its first major transformations since vehicles have been invented. During the last century, combustion engines have been one of the main focuses in the development and manufacturing of vehicles. Due to various influencing factors such as environmental concerns and scarcity of oil as well as the respective increase of costs, new ways of how vehicles are being powered had to be developed. This has led to the development of alternative power engines. Full electronically powered engine vehicles became the ultimate development goal of the automotive manufacturers posing huge challenges and the development of intangibles becam...