How EVs Are Shaking The Car Parts Supplier Industry
Companies that make parts for internal combustion engines are facing a harsh future. Revenues for ICE cars, and fuel and exhaust systems are all expected to decline 44% through 2027. Meanwhile, for electric drivetrains and batteries or fuel cells, revenues are expected to rise 245%, according to a 2023 Deloitte Automotive Supplier Study. While the parts themselves are changing, the pie is also shrinking. An internal combustion powertrain has about 2,000 parts. EV powertrains have about 20, sometimes less. Automakers are also finding ways to more efficiently manufacture parts through methods like giga casting, pioneered by Tesla. There are thousands of parts in cars that come from companies all over the world, a whole branching supply chain of firms each dependent on the success of the others. Many of those companies are small, family owned firms, but even the large, publicly traded suppliers such as Bosch, Denso, Magna and ZF could be in trouble. The question is, will EVs kill the thousands of auto suppliers or can they find ways to pivot, consolidate or somehow stay in business?
Chapters:
00:00 — Introduction
01:52 — The shift to EVs
05:55 — Lower demand
10:19 — Volatile times
11:42 — Industry pivots
Produced by: Robert Ferris
Editor: Darren Geeter
Senior Managing Producer: Tala Hadavi
Graphics: Jason Reginato, Andrea Schmitz
Camera and Production Support: Andrew Evers
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
How EVs Are Shaking The Car Parts Supplier Industry
Watch video How EVs Are Shaking The Car Parts Supplier Industry online without registration, duration hours minute second in high quality. This video was added by user CNBC 31 July 2023, don't forget to share it with your friends and acquaintances, it has been viewed on our site 595,39 once and liked it 7.1 thousand people.