SUPPLIER EYE

The impact of the upcoming U.S. federal election, global trade turmoil, a mediocre U.S. economy and the slumping ICE-to-EV (internal combustion engine to electric vehicle) transition must be considered. In my last column, we explored the growing use of scenarios to provide guardrails for future strategy. Suppliers can no longer rely upon a single forecast to drive future planning.

The main culprits clouding the planning environment are program delays, rescopes and EV strategy shifts accompanied by the extension of ICE/hybrid models. The trajectory of EV launches and new offerings is decidedly ahead of the skis of consumer acceptance. This supply-and-demand mismatch is an ongoing challenge. It is important to understand the severity of program changes amid this slowing EV growth environment.