We are delighted to present a Q&A session with Terence B. Johnsson, a distinguished figure in the automotive industry with 35 years of experience at the top levels of Audi, Volkswagen, and General Motors. Johnsson has served on over 20 boards in 13 countries, co-founded seven startups, and consistently delivered strong growth despite financial crises and market downturns. He has commercialised new technologies, forged partnerships and alliances, negotiated joint ventures and technology licences, raised over $500 million in funding rounds, and engineered successful exit strategies for new companies. Johnsson's deep understanding of the automotive sector and his commitment to electrified mobility have positioned him as a key advisor and consultant for clean tech startups worldwide. In this session, we explore his insights on the challenges and opportunities in the EV industry, the impact of regulatory landscapes, and the emerging trends shaping the future of clean tech transportation.

#LEVS: Based on your extensive experience in clean tech transportation startups, what are the most significant challenges you've encountered when trying to commercialise new EV technologies? How have you successfully navigated these challenges?

#Terence Johnsson: For a new EV company that is designing, engineering and manufacturing a new EV, the biggest challenge is liquidity and funding. If you clear that hurdle, then an even more challenging hurdle is ramping manufacturing. Prototypes are easy, but reaching scale and eventually positive operating profit is super tough. Purely on a commercialization level, the key challenge is getting to market with a compelling customer benefit. Navigating this successfully starts up front, at the very beginning. The startup needs to have a purpose, that guides the brand, the culture and values, and that drives the R&D and customer journey. The North Star. The most common mistake is treating commercialization as an after-thought.

#LEVS: Given your global experience in regions such as China, Asia, the Middle East, Europe, and North America, how do market dynamics and consumer preferences for EVs differ across these regions? How do these differences influence your strategies for market entry and growth?

#Terence Johnsson: I tend to cluster countries into "top-down" markets and "best price" markets. Mature markets with well defined premium brands with significant market share define "top-down". An example of this might be Europe or some Middle East countries. Developing markets consisting of mainly "best-price" brands and products are on the other side of the spectrum. An example of this might be India. Market entry for a "top-down" market is exactly that: you enter at the top of the market with compelling design and market best technology, positioned at an acceptable discount to the established premium brands. For "best price" entry, you have to meet extremely challenging price points with razor thin profit margins. What all markets have in common, I find, is that the customer expects the new company and the new product to deliver something best-in-class for that price point. Early adopters have done their research into electrification, and the expectations for a dynamic driving experience, Over-The-Air connectivity and developing autonomous driving technologies are the basics. Simply electrifying a known form factor and product name, without bringing the full innovation from these disruptive technologies, has proven to fail.

#LEVS: Having held Vice President level positions in major German and US automotive companies, as well as roles in startups, how do the organisational cultures and innovation processes differ between large corporations and startups? What best practices from your corporate experience have you found most beneficial in the startup environment?

#Terence Johnsson: Legacy companies can articulate a new technology or even speculate about the risk of paradigm shift. However, it is very difficult for legacy manufacturers to disrupt themselves. Afterall, everyone in leadership positions got there through excellence in the legacy technology and legacy success criteria, and are unlikely to dare pivot and adopt a completely different approach about which they have no idea. Startups tend to be born with a strong conviction or purpose that drives their thinking and culture. The founders see a gap in the market and an opportunity to start with a completely clean slate. They are more likely to dare to re-imagine a better "mousetrap" and have no interest in being bound to traditional thinking. I can bring a perspective on markets and existing gaps in delivering successful customer journeys. I can also accelerate the understanding of external factors for success at a local and regional level, which help startups leapfrog in learning and commercialising.

#LEVS: How do you see the evolving regulatory landscape impacting the development and adoption of EV technologies globally? Can you share any examples where regulatory policies either facilitated or hindered your efforts in advancing clean tech transportation solutions?

#Terence Johnsson: In automotive, the regulatory environment has long been a close collaboration of public and legacy private sectors. The public sector has tended to be driven by big, global platforms related to COP26, for example, but implementation is then moulded and adjusted with private sector players. In automotive, the influence of multiple sectors together, especially transportation and energy, put two of the largest influences in the cross-hairs of disruption. At stake is not only legacy corporate earnings and liquidity, but also jobs and therefore votes. There's an enormous amount at stake for public and private, it goes without saying. What has been unique in this context is that the largest and traditionally one of the most profitable markets, China, happened to drive a much more progressive greenhouse gas reduction agenda. That placed most other countries or regions, including the EU, in a position of chasing the pace-setter. At the same time, the serious challenges for legacy companies disrupt themselves with new technologies was predictably difficult, with legacy players then pressuring for lower standards, even while risking losing relevance with older technologies. It's not too different to the disruption we saw with smart phones, only there's much more at stake with automotive and energy. One recent example of a country pivoting away, suddenly, from progressive incentives is Germany at the end of 2023.

#LEVS: What emerging trends and innovations in the EV and clean tech transportation sectors are you most excited about? How do you see these developments shaping the future of the industry, and what role do you envision your current ventures playing in this transformation?

#Terence Johnsson: Cleantech in transportation has already brought us amazing improvements in our ownership experience and costs. Fun to drive, constantly improving and updating software, charging at home conveniently (for many) and now price parity at retail in many markets as prices come down drastically. I am looking forward to the autonomous vehicle, without geo-fencing restrictions, as the next major breakthrough. My role will be to help the emerging markets anticipate the changes and use the new paradigm to leapfrog old technologies. 

#LEVS: How do events like the London EV Show contribute to the advancement and commercialization of new EV technologies

#Terence Johnsson: Events like the London EV Show help demonstrate at a local, granular level the exciting innovations of local entrepreneurs. From delivery vehicles to charging to software, there is always inspiration in the local solutions and amazing applications of this new paradigm.