Electric vehicles could transform role of tier 1 suppliers in production and technology

Supplier development

As OEMs look to reduce production costs and manage more complexity, automotive suppliers will face challenges. But with more EV models in the pipeline, many have the opportunity to grab a larger piece of the pie both for manufacturing and supply chain management.

With the global automotive industry experiencing stagnating volumes and simultaneously transitioning to electrified powertrains, automotive tier 1 suppliers are facing a squeeze. Many will see lower manufacturing volumes and will need to look carefully at ways to reduce factory, labour and supply chain costs.

However, automotive suppliers also have an opportunity to play a larger role in the total supply chain and manufacturing process for their OEM customers. Some suppliers are responding to the erosion of their margins by taking over more parts of the automotive value chain. That includes transitioning to ‘full service’ supplier relationships, such as ‘build-to-suit’ processes with automotive OEMs, alongside more standard ‘build-to-print’ services.

Register free or sign-in to read this exclusive insight into changing roles of tier 1 suppliers in the supply chain, and also download the full copy of our free, 80+ page report on profit margins in the supply base. ”Automotive Tier Supplier Profit Analysis: Mitigating Margin Compression Whilst Navigating Unprecedented Industry Transformation”.

Business intelligence by Automotive from Ultima Media

Register or login to access the full report and our in-depth content

Register free now, or sign into your account, to read this special report. By registering you will also join the automotiveIT International online community, which will help you stay up-to-date with the latest industry news, developments and connections.

Your free registration includes:

  • Full, unlimited access to this special report and other in-depth analysis
  • Access to our exclusive content, including must-read news and interviews
  • Weekly e-newsletter
  • Special offers
  • Early access to reports from our portfolio of events
  • Ability to manage your profile and communication preferences

If you have already registered, please login to your account for access to the report.