How car suppliers prepare for the future of electric vehicles

(TNS) – The transition to electric vehicles will cost the car industry billions and could lead to many partnerships and mergers, but leaders of high-end Michigan suppliers see it as more likely than disrupting technology-driven evolution.

Suppliers: BorgWarner Inc., American Axle & Manufacturing Holdings Inc. And Nexteer Automotive Group Ltd. As EV and Accelerated Product Growth accelerated supply constraints affecting production schemes, labor shortages, and economic instability.

Like their automotive customers, they are pursuing two strategies based on both present and future. They focus on internal combustion products by simultaneously producing products for the benefit of tech-savvy, eye-catching EVs.


But suppliers, who build parts primarily for internal combustion vehicles, are not worried about the transition. Big reason: Although billions of cars have invested in this transition, they are not yet improving their bread and butter gas-based products.

“Because of North America’s original manufacturing strategy, even the most dangerous suppliers have time to practice until 2030 because no one likes anything,” said Car Consultant Consultant and former General Motors Company for 40 years.

Detroit Three and other suppliers still last year set some EV targets that they could not ignore. GM has a “wish” for all zero-emissions by 2035 and says it will sell 1 million EVs worldwide by 2025. Linn In 2029, EV will have an option.

Foreign cars also have EVs. Honda Motor Company, for example, claims that battery-electric and fuel cell electric vehicles will represent 100% of their vehicle sales by 2040.

“Obviously, original manufacturing companies are transitioning from traditional ICE and hybrid engines to electrification,” said David Dowc, CEO of Oaks, USA. Interview with Detroit News.

“They have high goals there,” he said. I think it will take some time to implement based on consumer acceptance, but they do nothing more than what we are expected to do … we have to be marketable.

Prepare or ‘You Will Be a History’

Even when investing heavily in automobiles, sales of vehicles still account for only about 2% of the US market. Linn By 2028, AutoForecast Solutions EVs predicts 16% for the rich US market.

Sam Fiorani, vice president of automotive forecasting for automotive solutions, said the transition “will take a long time, especially in the United States.” Providers do not have to worry. They must be ready.

No matter which part you are in, you need to be prepared for the future. And if you’re not prepared, you become history.

As with automobiles, suppliers need to consider the impact of policy on electrification, incentives, and charging infrastructure on consumer adoption rates. There is currently no federal EV sales authority or goal in the United States, but some states, such as California, have introduced their own.

Meanwhile, the leader of the EV regulation wants to discontinue new internal combustion vehicles by 2035. In China, the world’s largest car market, the government has set targets for the sale of new power vehicles – 5 million by 2025, said Michael Dune, CEO of Hong Kong-based consulting firm, 20%.

Suppliers agree that they do not want to see many laws that vary from state to state and require infrastructure investment. President Joe Biden’s plan to “win” the electric vehicle market by spending $ 174 billion, distributing half a million chargers across the country by 2030, and increasing consumer incentives to buy – remains controversial on Capitol Hill.

Accelerate EVA Efforts

American Axel, known for its internal combustion engine systems, has been preparing for the EV transition for at least a decade.

Linn The discovery of the damaged Saab Automobile AB in 2012 provided “bookshelf technology” that included all-wheel-drive systems and electric drive components supplied with electricity, Dows said.

Linn In 2015, Axel acquired its first major EV program with Jaguar Limited for I-Pace, the first electric vehicle for British automobiles. The company has worked with Chinese automakers on AV programs and supports GM Wheel Collaborative EV programs in China.

According to Dow, he is currently working on a new program called “High Performance Luxury European Original Manufacturers.” Over the next several years, there will be seven alternatives to that program.

In fact, every original manufacturer around the world is now trying to understand their long-term production plans, and this is working on adjusting their long-term production plans on a regular basis because this general electric pole is happening fast, he said. .

He did not say how much American Axel was investing in electrification, but added that it had increased research and development costs.

“We always want to keep one or two generations out of our competition, so we are working on those next generation products,” said Dowk. “We are trying to come up with better solutions for our customers at an improved price.”

According to Dow, what will happen to Axel’s internal combustion products in the future? The market is not expected to change overnight. Still, suppliers like American Axel know that they can’t wait for it to happen.

“All they have to do is figure out how to make this product cheaper and better than the original ones themselves,” said Sam Abu El-Samid, chief research analyst at the department.

Informing company Borg Warner announced in March 2021 today that it will reduce its EV revenue by about 45% of its total revenue by less than 3% today. Part of the plan includes partial collection from the internal combustion business.

Borg Warner aims to generate $ 3 billion to $ 4 billion in annual revenue from ICE products by 2025. It also plans to spend $ 220 million to $ 225 million on EV products, with a combined R&D and capital expenditure for $ 3 billion. The next five years.

In preparation for the EV transition, Auburn Hills-based Borgwarner made several purchases. Linn In 2015, the company acquired Remi International Inc., a manufacturer of electric motors. And last year, it acquired Delphi Technologies, which acquired Borg Warner, a “leader in electronics and power electronics products, capacity and size, and a leader in electric-driven transmission systems,” the company said in a statement.

“It’s a long journey,” said Paul Farrell, BorgWarner’s chief strategy officer. We are now in the process of accelerating and accelerating our efforts.

Borg Warner added, “Farrell is committed to our customers and to our portfolio.

Seeing a ‘bright future’ with luck

Years ago, as a result of the need to meet the requirements of the oil economy, the industry began to change from hydraulic power to electronic power. The switch detects suppliers such as Nexus for AV transmission.

Most of the light vehicles in the world today have changed that to APS, electric power, so as a result of that change, we are now in a much better position with more and more battery-powered vehicles. Robin Milavek, Nexter Technology Officer and Strategic Officer.

Alongside the commercial drive line, Nexus has developed products designed for AVs, including new Halfshaft technologies that “improve strength and efficiency while improving noise, vibration and brutality”. The provider says.

Illinois-based supplier Flex-N-Gate Corp.

“We see some opportunities for Flex-N-Gate to move to the power side of the power plant,” said Guido Benvenuto, vice president of engineering at Flex-N-Gate.

Flex-N-Gate plans to open a research center on battery cells and modules in Winsor. The center will be operational next year.

“Our belief is that we want American energy independence, that is our goal, and that American companies serve American customers in energy storage,” Benvenuto said.

Flex-N-Gate is moving to invest in battery development, just like the cars themselves. GM and partner LG Energy Solution are planning several battery pack factories in the United States to support GM’s EV plans. Ford has partnered with SK to develop their own batteries.

The move towards vertical integration is also something that suppliers should look at. Electric motors and batteries are essential to becoming a moving car. ”

Japan’s supplier Denso Corporation is also supplying electric motors and power electronics, and the company is working on batteries, said Jim Harkins, engineering director of Denso Electrical Systems.

Linn In 2017, Denso invested $ 1 billion in Maryville, Tennessee, to improve the plant’s future. Here the company manufactures starters, switches, equipment kits, various automotive electronics products and intercoms for hybrid vehicles.

“This is a strong step towards electrification,” said John Callis, director of North American Electricity at Denso. As we move from certain heritage products to selected products, we look forward to a brighter future and our role is crucial.

21 2021 The Detroit News. Distributed by Tribune Content Agency, LLC.

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