Automakers relinquish control to suppliers in race to EVs

As the production of electric vehicles increases and automobile manufacturers strive to secure their battery supply chains, they are relinquishing some control over traditional parts suppliers. This change is due to the automakers being focused on reinventing themselves in a capital-intensive undertaking that limits resources for established business operations, as emphasized by an industry expert and executive. The introduction and widespread adoption of electric vehicles have impacted parts producers who rely on the production of internal combustion engines. As an EV has significantly fewer components compared to a gas-powered car, this change presents serious challenges for traditional suppliers. However, some large suppliers view this shift in market demand as a chance to recognise their supply chain management strategies by consolidating their supply base and outsourcing various traditional auto parts. According to Mark Barrott, principal at Plante Moran specializing in the automotive industry, such changes present “golden opportunities” for these suppliers to adapt successfully amidst technological transformations within the automobile sector. Automakers are adapting to the shift towards electric vehicles by allowing top-tier suppliers to take charge of producing certain car parts that are essential even with electrification. However, there is a growing concern among automakers about retaining ownership over the data and intellectual property surrounding batteries management systems. This is considered to be a necessary measure, as stated by Barrott, in the upcoming era of EVs. This has led OEMs to become more defensive about maintaining control over these areas while allocating less resources towards other aspects of vehicle development and component production. #electricvehicles #emobility #batterymanagementsystems #automotiverecruitment   Source: https://www.autonews.com/automakers-suppliers/why-automakers-are-meddling-less-top-suppliers