The automotive industry is at crossroads as it navigates what is forecast to be a decades- long transformation from being an industry that builds, sells and maintains vehicles powered by internal-combustion engines to one that increasingly includes a rich portfolio of vehicles powered by electricity.
The transition to electric vehicles (EVs) has clearly begun. However, the road to building the capabilities that can sustain an end-to-end global EV value chain is filled with potholes and unexpected turns that could prevent some companies from maximizing performance and returns on their
In part one of this three-part series, our team at FTI presented the business case for why companies across the automotive value chain — battery manufacturers, automakers and suppliers, and service providers — need to already be working to harness the growth opportunities of an EV value chain that we forecast could reach $1.2 trillion annually by 2025.
In part two, we surveyed hundreds of Automotive News subscribers representing automakers and suppliers to understand what they were doing to develop their EV supply chains, how they were managing those activities and the activities surrounding their internal-combustion supply chains, and the complexities they were encountering.
In this final installment, we focus on the questions that we believe executives working in electrification should be asking, as well as recommendations on how those companies ought to be working to answer them. Questions like:
• Do we have the right portfolio of products or services to support vehicles powered by different powertrain technologies?
• Do we have the right tools and technologies to manage and mitigate risk up and down two different supply chains?
• Do we have the right customer portfolio, and is it diverse enough to help weather market downturns?
• Are we focused on the right market or position in the value chain to maximize growth for the business?
• Do we have the right partnerships to supplement our own capabilities to provide a compelling value proposition?
• Do we have access to capital to invest in innovation, capabilities and talent to drive long- term growth?