There will need to be high level of collaboration between the OEMs and tiers throughout this transformation. There are opportunities for OEM-funded or joint-funded projects and depending on the technology being developed, there are opportunities to jointly apply for funding through outside resources such as Department of Energy projects, consortia, etc.įreeberg: The supply chain cannot absorb the investments required without the support of the OEMs. We are also seeing more collaboration with OEMs in developing the needed technologies. We are just reapplying materials and technologies to new applications and components. Q: How will the supply chain absorb the enormous R&D investment required to convert to EVs? Will suppliers bear the burden on their own? With additional aid from the OEMs? By increasing consolidation of the supplier sector?įoran: Many of the needed technologies already exist with current materials and processes. This includes standards for reusable packaging, used to move parts in the supply chain. These approaches will also mean suppliers need to be flexible and help establish standards. OEMs have different strategies for EVs, which means their platforms and architectures are varying. Volumes will be small and hopefully grow over time as consumer demand grows. With that said, being nimble and investing in innovation will be key for any supplier.
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This will be a dynamic time for the entire automotive supply chain. Kacie Freeberg: Suppliers have opportunities to support the additional powertrain of the EV platform. Hugh Foran: Suppliers who are agile can adapt their respective resources and expertise to provide EV components such as battery assemblies as a subcomponent castings for the electric motors and drivetrains lightweight body panels, frames, doors and all of the components required for overall vehicle assembly or even provide components or housings for all of the charging stations that are going to be needed. This is a completely new skill set for AAM and one that we did not have just five years ago.
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Most notably, the software side of our business has grown significantly. For AAM, it is an opportunity to move into completely new segments with new products along with new booked business. As an industry, we haven’t seen this level of fundamental change in quite some time. This is an exciting time for suppliers willing to consider new capabilities and new systems. Q: As the auto industry transitions from the internal-combustion engine-and along with it, the parts that go into that powertrain-what are the new opportunities for suppliers from electric vehicles?Ĭraig Renneker: EVs represent completely new opportunities for growth from both a technology and revenue standpoint.