Automotive suppliers are face with the daunting task of delegating resources to electric vehicle components. Some suppliers believe that EVs will be a success and have vested a considerable amount of money into product development, others believe EVs will be short lived and have decided to continue with ICE supplies only. This transitional period is difficult for suppliers as a risky ordeal lies ahead.
Large suppliers have generally taken the stance that they will be able to capably supply for both vehicles. One of the largest automotive suppliers in the world now believes that the future of the automotive industry will be dominated by electrified power trains and the ICE engine is in the stages of transition to electric power.
Joe Sleznak, component supplier for Bosch, spoke at the Society of Automotive Engineers Hybrid Vehicle Technologies Synopsium last week. His words were bold, stating that the company believes that the internal combustion engine may remain around for a long time, but they believe that it will be relegated to a minor role as electric drive takes over the industry.
Bosch is in the readiness stages for EVs. They have begun production of EV specific parts and wil continue to shift additional capacity to EV supplies as the market grows. As they see it, this transitional period will be difficult as entirely new parts will need to be produced and production capacities will be limited. As Slenzak states, gas and diesel engines will likely be the major source of motivation for at least 20 more years, but EVs are coming and will soon become dominant.
Preparing for the changeover seems to be inevitable, but the transitional is likely to be difficult for suppliers. The risk factors and development costs of entirely new parts make the transitional period difficult for all suppliers, but change is coming and Bosch believes that they are ready.