Q: What parts of the supply chain are most vulnerable during this transition to EVs? What parts of the supply chain are poised to benefit?
Freeberg: The following are the most vulnerable parts during the transition: components for internal combustion engines, transmissions, and fuel and exhaust systems. There is also a reduction of plastic parts such as air-intake manifolds, fuel tanks and engine covers. There are some opportunities with the obvious addition in the drive motors and battery components. There will be additional innovation around lightweighting other traditional components to help account for the added weight of the battery units. Many OEMs are looking at how the vehicle can become integral beyond transportation and have added features geared to add consumer value. We are seeing interesting storage locations and features, backup-power banks, external speakers and even camp grills, to name a few.
Renneker: The most vulnerable part of the supply chain will be those Tier 2 and Tier 3 companies that have not yet started thinking about what the transition to EVs means to their company in the near future. For the past several years, we have been communicating with our suppliers the need to develop a longer-term plan for this transition. We believe in the power of partnership and have actively encouraged our suppliers to bring forward new innovation in the EV space so that we can support them on this journey. We know that this is a challenging time, and we continuously monitor the health of all our suppliers. Foran: The most vulnerable companies are those unable to adapt quickly and those that produce components specific to ICE vehicles, such as exhaust systems, fuel tanks and AM radios. Companies with flexible materials and manufacturing processes that can be converted to produce EV components will benefit. Those who can use existing processes and materials to innovate for EVs will thrive.
Freeberg: The following are the most vulnerable parts during the transition: components for internal combustion engines, transmissions, and fuel and exhaust systems. There is also a reduction of plastic parts such as air-intake manifolds, fuel tanks and engine covers. There are some opportunities with the obvious addition in the drive motors and battery components. There will be additional innovation around lightweighting other traditional components to help account for the added weight of the battery units. Many OEMs are looking at how the vehicle can become integral beyond transportation and have added features geared to add consumer value. We are seeing interesting storage locations and features, backup-power banks, external speakers and even camp grills, to name a few. Renneker: The most vulnerable part of the supply chain will be those Tier 2 and Tier 3 companies that have not yet started thinking about what the transition to EVs means to their company in the near future. For the past several years, we have been communicating with our suppliers the need to develop a longer-term plan for this transition. We believe in the power of partnership and have actively encouraged our suppliers to bring forward new innovation in the EV space so that we can support them on this journey. We know that this is a challenging time, and we continuously monitor the health of all our suppliers.
Foran: The most vulnerable companies are those unable to adapt quickly and those that produce components specific to ICE vehicles, such as exhaust systems, fuel tanks and AM radios. Companies with flexible materials and manufacturing processes that can be converted to produce EV components will benefit. Those who can use existing processes and materials to innovate for EVs will thrive.
