Companies that fail to quickly come up with a convincing electric strategy risk falling behind as the automotive industry hits its inflection point. In Automotive News, Mark Barrott discusses what it will take for auto suppliers to pivot successfully.
This year will be as good as it gets for the gasoline engine. After a century of dominance, gasoline-powered vehicles are set to see peak sales in 2022 and then go into permanent decline as automakers switch their focus and investment to electric models.
Call it the BlackBerry moment — the turning point when a dominant technology gives way to a new era. In this case, the shift from the internal combustion engine is being guided by regulations to reduce fossil fuel consumption, as well as by falling costs of the replacement technology and the build-out of its new infrastructure.
It puts the $1 trillion global auto supplier industry in a predicament.