Grand Valley State University's Van Andel Global Trade Center hosted its annual Automotive Suppliers Symposium virtually this year. This year’s theme, the industry’s strategic implications of electrification.
Short-term, the automotive industry is recovering from coronavirus pandemic impacts. In 2020, North American Light Vehicle Production dropped from 16.3 million units in 2019 to 13 million in 2020. This year the forecast calls for 16.2 million and 16.8 in 2021.
There are some headwinds including a shortage of semiconductors and labor.
The bright spot is the movement toward producing electric vehicles on a mass scale.
That has local parts suppliers formulating strategies said Mike Wall, Automotive Analyst for IHS Markit. “We’ve got more launching next year and really over the next, I’d say 24 to 36 months and beyond.”
He says suppliers on the west side of the state are being contacted now. “We’re also going to have to take the consumer on this journey from internal combustion to EV. And in doing so, I think that you’re going to see a bit more variability in volumes. My conversation with suppliers as it relates to that strategic side is to be able to build in optionality in their assembly line. Build in flexibility.”
Wall explained the launch of electric vehicles brings additional tooling and program costs for suppliers, and they want to do this efficiently, protecting profitability.
