Electrification to trigger massive changes in automotive supply chains

ford.automotiveIT

The advent of large-scale electric vehicle production could lead to a seismic shift in the way automotive supply chains operate. Relationships will change, new players will emerge and the auto industry’s procurement focus is likely to be radically altered.

Industry insiders see an automotive landscape emerging where traditional players increasingly have to compete with nimble new market entrants. Moreover, disruption is pre-programmed as electrification may well put at risk the huge market for automotive components and systems now geared to combustion engines. And analysts predict that battery producers, a new category of automotive players, are going to emerge as key suppliers in the era of electrified propulsion.

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