Manufacturers are meddling less in the business of traditional suppliers as they scramble to secure their battery supply chains.
As automakers ramp up electric vehicle production and scramble to secure their battery supply chains, they are meddling less in the business of traditional parts suppliers, according to an industry expert and executive.
As a matter of necessity, automakers are letting top-tier suppliers take the driver's seat when it comes to producing some parts of the car that won't be eliminated with electrification, Barrott said. At the same time, carmakers are more hawkish about controlling the future of the vehicle. But micromanaging is no longer a viable strategy when speed and innovation are now the keys to survival.
After the economic downturn in the late 2000s, which hit the auto industry especially hard, automakers tightened the leash on suppliers and began directing sourcing strategies for better visibility on costs, Del Grosso said. Now, the transition to EVs provides new opportunity for suppliers, particularly large Tier 1s that are either insulated from the EV shift — such as seat makers — or those that have strong engineering capabilities and can adapt quickly, Barrott said.
Adient and other suppliers, such as competitors Lear Corp. and Magna International, are aiming to position themselves as cutting-edge designers and tech companies instead of merely just manufacturers. Even for parts as primitive as seats, those companies are looking for an edge with sleeker design, thermal comfort and more environmentally sustainable material — aspects automakers are now happy to outsource, Barrott said.
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