SUPPLIER EYE

Has there ever been a period of automotive history where the shift in trajectory, technology envelope and level of risk assumed has been so high - and happening as rapidly as the transition to electric vehicles? I'll submit that the post-WWII boom and competitive shakeout, the 1970s oil embargos and subsequent focus on light-weighting, and the bankruptcies of a couple of major U.S. OEMs come close. But those events will pale in comparison to the impact of the ICE-to-BEV transformation.

The current S&P Global Mobility BEV production-share forecast for NA is almost 9% - up three percent from last year. By 2030, the forecast is for 39% of production to be battery-electrics. Of course, that leaves roughly 60% of production powered by IC engines, with most of them likely to be hybrids. Still, given this backdrop suppliers in the engine, transmission, driveline, fuel and exhaust spaces have been strategizing their future. Some are proactively making critical decisions while others are waiting for the dust to settle (and the next rounds of vehicle emissions and fuel-economy regulations to arrive). News flash! The dust has settled.