Blockchain Makes Moves in the Auto Industry
When most people hear the word blockchain, they typically think of virtual currency and NFTs but these next gen technologies are doing more than shaking up financial worlds. In fact, some of the biggest automakers across the globe have already said they are working on using decentralized digital ledger technology to help cut costs and finally achieve a competitive advantage in the car market.
Blockchain's benefits in the auto industry can be seen in a trial run in China with SAIC-GM-Wuling, the maker of the country’s successful Hongguang Mini EV. The company was picked by China’s central government among other industries to develop new, innovative applications for blockchain technology.
To assist with its supply chain demands, the company started using a digital ledger instead of manual handovers of parts eliminating the possibility of human error and improving efficiency.
Since SAIC-GM-Wuling is dealing with over 900 components daily from tons or suppliers, employees needed a way to ensure the company was getting accurate and clear handovers for these high cost transactions.
Now, with a digital record and contracts maintained in a decentralized form across different locations, Bloomberg reports the company is on track to save over $2.5 million in just paper waste alone. All of these savings are passed down to the consumer and help the automaker to maintain a competitive advantage in the highly competitive and constrained market.
Other carmakers like Great Wall Motor in China are also using blockchain technology to outsource services and reduce labor costs.
BMW is also using blockchain, so people who purchased used cars will be able to verify details on their own about the history of a vehicle - including accident history or service recommendations.
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Edited by Luke Bellos
