With the deepening of the comprehensive restructuring of the automotive industry, especially the continuous surge in sales of new energy vehicles, traditional car companies are feeling unprecedented pressure. To this end, various car companies have taken various response measures, such as shutting down or selling some traditional production capacity or businesses such as transmissions, increasing investment and cooperation in new fields such as power batteries, chips, software, etc. How can traditional car companies achieve the "elephant turn" and embrace the new era of intelligent electric vehicles? Fully understanding the changes and challenges brought about by industrial restructuring is a prerequisite for the successful transformation of traditional car companies. Overall, this round of industrial restructuring can be summarized as electrification and intelligence. Electrification has given rise to a new energy vehicle industry chain that is parallel and completely different from the traditional fuel vehicle industry chain. The new industry chain is centered around batteries, and traditional car companies have no advantages here. On the one hand, new energy vehicles are rapidly eroding the share of fuel vehicles, and the accumulation of fuel vehicles may become a sunk cost for the transformation of traditional car companies. On the other hand, currently fuel powered vehicles are still the mainstream in the market, and enterprises cannot abandon them. Facing the future direction of new energy vehicles, enterprises must continue to invest. It can be seen that the challenge of electrification to traditional car companies is how to balance investment in new and old businesses and achieve sustainable development. The impact of intelligence is even more profound. In the era of intelligence, the true fundamental change in the industry is the "software defined car", which means that cars will no longer be dominated by hardware configuration, but by software services, and thus evolve into a new species that can achieve self evolution through software, scenario oriented, and data based - the "new car". The industrial boundary of "new cars" has been unprecedentedly expanded, such as the Internet of Things, big data, cloud computing, artificial intelligence, and chips, which have become the core capabilities of the automotive industry. These new capabilities were not previously mastered by traditional car companies and cannot or should not be fully mastered in the future. It can be seen that the challenge of intelligence for traditional car companies is how to obtain all the core competencies required and maintain product dominance. Based on the above analysis, it is recommended that traditional car companies adopt the following transformation strategies: firstly, implement the "dual track competition" strategy. Traditional car companies need to maintain their fuel vehicle business while also building a competitive system for new energy vehicles, cultivating new core technologies, business models, and brand values. Due to the different concepts, methods, and cultures required for both new and old businesses, operating them together under the same roof has more disadvantages than advantages. Traditional car companies should adopt a "dual track competition" model, reasonably separating and operating new and old businesses independently, especially giving new businesses full operational autonomy, so that they can explore the best development path with maximum flexibility. Secondly, adhere to the principle of "being upright and extraordinary". Continuously innovate while following the laws of the industry. Firstly, increasing the value of software does not mean that hardware is no longer important, and building a good car is always a prerequisite for everything. Therefore, traditional car companies need to effectively combine their understanding of the inherent laws of the industry with innovative practices. Secondly, only continuous and bold innovation can form advanced competitiveness. Traditional car companies should dare to "think what others have not thought of, and do what others have not done" in various dimensions such as software, hardware, services, experience, and brand. Finally, industrial restructuring must involve both innovation and inheritance. Enterprises need to