An Automotive Minute with Michael Robinet: Supplier Strategy in the BEV Age

Scores of component suppliers are contemplating critical
decisions with respect to the future of their organizations. GM’s
recent announcement of an aspirational goal of being battery
electric only by 2035 has spurred several suppliers to soul
search.

There are four primary choices for most suppliers given the
looming structural shifts driven by electrification.

1. Maintain course – Select suppliers may conclude their ecosystem
   and value equation does not change that much
2. Double Down – though the industry is in the midst of
   significant secular shifts the internal combustion engine and a
   strong aftermarket tail will be around for several decades. Is
   there a play to buy up competition?
3. Sell or partially consolidate – many suppliers may not be
   willing to risk their current value by shifting all or part of
   their organization to meet the brave new BEV future.
4. Lastly – they can pivot. Shift to new capabilities relevant to
   the BEV world while still utilizing the organization’s technology
   and process know how.

Whatever the choice, these decisions have long-term
implications.

Ask Michael a question

Source: http://ihsmarkit.com/research-analysis/an-automotive-minute-with-michael-robinet-supplier-strategy-bev.html