{"id":21191,"date":"2022-05-19T22:55:19","date_gmt":"2022-05-19T18:55:19","guid":{"rendered":"https:\/\/autoscommunity.com\/?p=21191"},"modified":"2022-05-19T23:14:11","modified_gmt":"2022-05-19T19:14:11","slug":"auto-oems-to-invest-us515-billion-in-ev-related-technologies-and-upgrades","status":"publish","type":"post","link":"https:\/\/autoscommunity.com\/2022\/05\/19\/auto-oems-to-invest-us515-billion-in-ev-related-technologies-and-upgrades\/","title":{"rendered":"Auto OEMs to Invest US$515 Billion in EV-Related Technologies and Upgrades"},"content":{"rendered":"

Based on updated Electric Vehicle (EV) introduction plans announced recently by automakers, the complete transition to EV production for many OEMs could come as soon as 2030. According to global technology intelligence firm\u00a0ABI Research, auto OEMs will invest an estimated US$515 billion in EV-related technologies and manufacturing plant upgrades over the next 5 to 10 years.<\/strong><\/p>\n

However, in its new whitepaper,\u00a0The Electrification Wave and its Impact on the Automotive Supply Chain<\/a>, ABI Research<\/a> argues that automakers have not adequately recognised other impacts that the EV transition will have on the supply chain and, consequently, the effect on the ability to achieve their new vehicular model rollout plans.<\/p>\n

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\u201cSpecifically, automakers, from GM<\/a> and Ford<\/a> to VW and Mercedes<\/a>, will need to maintain the simultaneous development of new\/updated Internal Combustion Engine (ICE) models and the introduction of differentiated EV models<\/a> (models that are not powertrain variants of existing ICE models). Incumbent automakers<\/a> also need to contend with new OEM entrants beyond Tesla, including Lucid Motors<\/a>, Rivian<\/a>, and Fisker<\/a>. These market pressures will require an elevated level of new model \u201cprograms\u201d that will address operational capacity constraints, which have been largely overlooked,\u201d explains Ryan Martin, Industrial and Manufacturing Research Director at ABI Research<\/a><\/em><\/p>\n<\/blockquote>\n

A modern automobile<\/a> is assembled from tens of thousands of parts, mainly sourced from a global supplier<\/a> network. Many are custom components designed for a specific OEM vehicle<\/a> model or platform program.<\/p>\n

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\u201cFrom ABI Research\u2019s ongoing research, automotive program management has not received the same managerial attention or level of investment as the supply chain that it supports,\u201d adds Jake Saunders, Vice President at ABI Research.<\/em><\/p>\n<\/blockquote>\n

Supplier\u2019s resources to manage new model launches are finite and are already stretched thin.<\/p>\n

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\u201cUnless automakers and suppliers take the initiatives needed to expand overall program launch capacity, their electrification goals are threatened,\u201d Martin concludes.<\/em><\/p>\n<\/blockquote>\n

To learn more about the\u00a0effects of the electrification wave on the automotive supply chain and how OEMs and Suppliers can act now to resolve the bottlenecks that may lead to substantial disruptions of their operations, download the whitepaper,\u00a0The Electrification Wave<\/a> and its Impact on the Automotive Supply Chain. You are welcome to share this link with your readers.<\/p>\n

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