EV DARWINISM: THE SUPPLIERS WHICH WILL GO EXTINCT

EV Channels Review

This episode of Autoline examines the precarious position of automotive suppliers amidst the EV transition. The panel highlights that while some suppliers are proactively investing in EV technology, a significant subset remains hesitant, believing EVs are a fad. This reluctance is particularly prevalent among smaller, family-run Tier 2 and 3 suppliers focused on ICE powertrains. The discussion also delves into the shift towards software-defined vehicles, with OEMs like Ford aiming to bring more software development in-house, potentially relegating traditional suppliers to mere hardware manufacturers. Major Tier 1 suppliers who anticipated the EV shift have invested heavily in components like e-motors and power electronics, but face challenges as OEMs increasingly opt for in-house production. The conversation touches upon the slow adoption of EVs in mainstream markets, the ongoing reliance on ICE vehicles for financing the EV transition, and the strategic decisions OEMs are making to navigate this complex landscape, including Ford's focus on specific market segments rather than covering the entire market.