SUPPLIER EYE

The saying ‘Two steps forward, one step back’ describes the overall progress of CASE - Connected, Autonomous, Shared and Electrified vehicles and infrastructures. While electrification and connected technologies arguably have each taken a step forward, funding four industry-changing secular shifts in unison was always a lot to ask. The resulting investment head-winds are not surprising, given the added impacts of COVID, microchip and labor shortages, the Russia-Ukraine war, and inflation/higher interest rates dampening vehicle sales.

Viewed from 30,000 feet, CASE's uneven takeoff trajectory has been governed by often unproven technologies being deployed within unrealistic timelines. OEMs and suppliers have devoted billions to the development and implementation of electrified propulsion in the major developed markets. Regulations have made the ‘E’ in CASE the highest priority. This includes battery-electric vehicle development and assembly, battery chemistry R&D, cell plants, strategic materials sourcing, downstream materials recycling and the required charging infrastructure buildout. The scale of investment and risk acceptance has been staggering.