AUTOMOTIVE OUTLOOK: FEW PROFITS IN SIGHT - AUTOLINE THIS WEEK 2320

EV Channels Review

This episode of Autoline This Week features Mark Wakefield of AlixPartners discussing the automotive industry's challenging transition into the electric and autonomous era. Wakefield highlights that despite heavy investment, the industry is entering a 'profit desert' as profitability from new technologies is not yet realized. He emphasizes the necessity for automakers and suppliers to participate in this transition, but stresses the need for a smart, careful, and often collaborative approach, moving away from traditional vertical structures. The discussion delves into the significant cost differences between ICE and EV powertrains, the role of alliances like the Ford-VW deal in mitigating costs, and the complexities faced by both OEMs and suppliers. While acknowledging the political and social drivers, Wakefield reiterates that cost reduction, improved charging infrastructure, and sufficient range are crucial for mass EV adoption. He concludes that navigating this 'profit desert' will be a key differentiator between industry winners and losers.