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How suppliers can hedge their bets on the EV transformation

May 16, 2024 In The News 4 min read
Authors:
Mark Barrott
Successfully reducing risk during the electric vehicle transition will require suppliers to develop a business strategy, establish an operating model, and optimize the operating model. Learn more in Mark Barrott’s article in Wards Auto.
Business professional checking factory floor equipment while holding a laptop computerThere is no denying that the electric vehicle transition is forcing the automotive industry to evolve by 2040. Suppliers across the value chain are feeling the impact. However, several factors ultimately will influence each supplier’s unique risk exposure — including which automakers they work with, their facility location(s) and which components they produce.

Although suppliers are in varying stages of the transition, each one can benefit from implementing three distinct checkpoints along their transformation. No matter where on the journey, successfully reducing risk during the transition requires suppliers to develop a sound business strategy that protects ICE-derived profits while investing in EV tech, and optimizing an operating model.

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