Integrating Agent-based Simulation and System Dynamics to support product strategy decisions in the automotive industry

Especially in the European Union both, regulatory requirements regarding the CO2 emissions of new vehicles and the shortage of crude oil force car manufacturers to introduce alternative fuel and powertrain concepts. Due to high investments and long development times as well as the parallel offer of conventional and alternative technologies, an appropriate product strategy is required. Car manufacturers have to decide, which powertrain to introduce at which time in which vehicle class. Hence, the aim of this paper is to develop a framework for the analysis of product strategies in the automotive industry with special regard to alternative fuel and powertrain technologies. The framework integrates System Dynamics and Agent-based Simulation in a simulation environment. On basis of this analysis recommendations can be deduced concerning the implementation of different product portfolios.