Matt Hannah’s Post

„Tavares said the challenge for automakers was to sell EVs, whose production costs are 40% to 50% higher, at the same price as equivalent petrol models. This forces them to cut costs at every level of their operations, including supply chains and logistics. "You are going to see a huge shift of the supplier base. The sourcing will move from the Western world to the best cost countries," he said during the Bernstein Strategic Decisions conference. "The EV race has become a cost cutting race," he added. Tavares, the head of a company whose brands include Fiat and Peugeot said the EV transition was being held back by affordability, with customers reluctant to buy expensive EVs unless supported by governments through incentives. "The Western world consumer is telling the Western world government, okay, there is the global warming issue, fine, but if you don't help me, I will not help you," he said. Stellantis would continue to bet on multi-energy platforms -- those created for EVs but that can also underpin hybrid electric-petrol vehicles -- to retain flexibility in its ranges.“ #change #electromobility #electrification #automotivesuppliers #automotivemanufacturing Thanks for sharing, Matt Hannah

In this article, I explore what do current challenges in the EV transition mean for OEMs and suppliers. I’m also looking into how these challenges could impact their financials. This is part of my ongoing journey to better understand the rapidly evolving automotive industry. I’d appreciate any thoughts or insights you all might have - looking forward to learning from the network! Read more on Substack: https://lnkd.in/esESVV55 #LearningJourney #AutomotiveIndustry #EVTransition #OEMs #Suppliers

Stellantis introduces advanced technology to enhance flexible EV production, setting new standards for the industry.  🚗⚡ Read more: https://lnkd.in/e4up7jF2

This week's featured sponsor: Automotive IQ The industry has witnessed dramatic change in recent months; experts have adjusted their expectations remarking that fully electric vehicles will come at a slower pace than first projected. In the last few months alone, the US automotive industry has witnessed a major shift from the production of fully electric vehicles to HEVs and PHEVs. In the intermediate term, OEMs are pushing for a hybrid scenario; with that comes new challenges. Depending on the type of application, whether it is a fully electric, hybrid electric, or plug-in hybrid vehicle, OEMs must design e-motor technology to specific applications.   Everyone wants to find that breakthrough technology that has been missing for the past few decades. While the industry has cutting-edge ideas, manufacturability is a bigger challenge than ever before. Another major challenge is the search for alternatives to rare-earth materials and magnets, achieving supply chain resiliency and reducing dependence on Asian suppliers. Thermal management of e-motors and integration with the overall powertrain continue to be key industry drivers and immediate priorities. Recognizing the changing pace and priorities of North America’s vehicle manufacturing industry, the Advanced E-Motor Technologies USA 2024 conference will be an essential gathering of OEMs, Tier-1 and Tier-2 companies, with an agenda and speaker line-up led by companies that are at the forefront of e-motor technologies. Learn more >> https://lnkd.in/gNzQc_Pk

Electric Car Ownership Increases, Market Growth Continues As reported by IEA in their article “Trends in electric cars,” electric cars continue to see an increase in sales which indicates that the market will continue to grow as it matures. Aerostar Manufacturing is committed to continuing support for the Electric Vehicle industry. “These trends indicate that growth remains robust as electric car markets mature,” IEA said. Read more here: https://bit.ly/3ZIzWPv

Stellantis' Multi-Energy Strategy in Tough Year Ahead CEO accepts challenges ahead for 2024 with automaker's diverse powertrain offerings meeting most consumer needs. http://spr.ly/6046b1qvM #Automotive #AutomotiveTechnology #IndustryNews

The global automotive industry is on the cusp of a significant shift towards electric vehicles, and Germany and its automakers must decide whether to lead the change or be left behind. The article in Der Spiegel suggests that Germany's influence in the automotive industry is waning, and it's time for the country and its manufacturers to take action. Will Germany call the shots, or will it be bowled over by the change? #ElectricCars #AutomotiveIndustry #Germany #FutureOfTransportation

Customers' and regulators' support of e-mobility transformation seems to be fluctuating - which is putting automotive suppliers under even more pressure. Many bets (i.e. plants, CAPEX allocations, shift of engineering competence, etc.) have been placed on the take-off of new large BEV programs, and any reduction of volume projections hurts. At some companies, measures need to be taken now. Without a powerful supplier sector, Europe's electrification ambitions will become even harder to achieve. My personal view: Let's try to explain our "automotive industry" even better, we will need full support of all stakeholders now to achieve the transformation in Europe! Thanks go to WirtschaftsWoche and Annina Reimann for the good discussions on an increasingly hot topic. #owautomotive #automotivesuppliers #transformation #oliverwyman

“…Stellantis NV and Mercedes-Benz Group AG’s battery site in Germany has stopped construction to review the business in light of slowing electric-vehicle sales and high costs. Automotive Cells Company SE, which is developing three battery plants in Europe at a total cost of €7 billion ($7.6 billion), is resetting its strategy in Kaiserslautern with one of the options making low-cost lithium-iron-phosphate cells, according to Chief Executive Yann Vincent. Demand for EVs has slowed in Europe with growth only expected in the mass-market segment, Vincent said, speaking on the sidelines of a BloombergNEF event in Munich. The plant, set to cost just over €2 billion with an initial plan to make lithium-ion cells, is also pushing out its start date by at about two years. The review on battery technology and cost savings at the former Opel site adds to a growing line of EV projects that are being rejiggered as electric cars struggle. Several countries in Europe have scrapped or reduced buying incentives, pushing vehicle sales sharply lower.

Discover how top Chinese automakers and suppliers are navigating challenges in the automotive industry. Check out the latest insights from the AlixPartners Global Automotive Outlook featured The Wall Street Journal. Let's connect if you want to discuss further. #automotivetechnology #EV #sustainability #output #Manufacturing