SUPPLIER EYE

Ominous news for those suppliers whose core business is in combustion-engine powertrains: The pace of new engine-family launches is steadily slowing. It will plummet precipitously after 2021, as our IHS Markit data in the chart below reveal.

This, of course, is being driven by the long march toward a battery-electric future. In the short-to-mid-term, hybrid-electrics will help keep the ICE alive, along with a few unique, low volume, new engine programs. Development of all ICEs going forward will stress thermal efficiency gains, requiring further technology strides. But in the longer term, supplier fallout in this space is not far behind.