Tier 1s rolling with the rocky transition to electrified vehicles

The jagged transition from ICE-powered vehicles to EVs and shorter lifecycles for new technologies are gnawing at Tier 1 suppliers' production volume forecasts. “It's a difficult task for Tier 1s and our sub-suppliers,” Joe Palazzolo, Dana Incorporated's global director for electrification, said during SAE WCX 2024's final Leadership Summit session, which focused on issues facing Tier 1 suppliers. “Are we planning for 200,000 units or 20,000 units?”

Many Tier 1 suppliers have ICE-related and electrified product portfolios. But the twist is the uncertainty surrounding volumes for ICE-powered vehicles versus electrified vehicles. “It's tough right now,” said Harry Husted, chief technology officer for BorgWarner. “When we have product ready and a contract awarded and the volume doesn't ramp up the way you planned, it's a challenge.”