4. The shift The Technologicalshift from traditional to alternative powertrain is a direct attempt in theautomotive world to reduce and eliminate the carbon dioxide, nitrogen oxidesand other particulate matter emission into the environment. From the technologyperspective, the makers have attempted this shift for about a decade with manyfailed attempts. Now we are in a position to completely revolutionize theindustry! The company Tesla piloted the break throughout for massivelarge-scale adaptation while rest of the industry was still in the nascentstage of development. Several makersnow produce and sell battery electric vehicles (BEV) of prototype standards inthe market.
They face the challenge of small range, large amount of timerequired to charge the battery and insufficient infrastructure for longjourneys. Fuel cell electric vehicles (FCEV)powered by hydrogen eliminates the range problem, but suffer from poorinfrastructure, cost of hydrogen production and concerns related to safety dueto handling of high pressures up to 700 bars. Hybrid electric vehicles (HEV) thebest fit solution at present can satisfy the needs with a toggle switch betweenelectric and fossil fuel has been a successful product to the consumer.
Howeverthe cost of getting a hybrid car is the same as purchasing 2 cars. Even thoughin lower amount, it emits green house gases and does not catalyse therevolutionary change towards zero emission vehicles. The role ofsuppliers is to adapt into the change, build on technological innovation and envisiona green supply chain management. On one hand, the alternative powertrain offersthe opportunity to new and young incumbent suppliers to surface out, on theother it challenges and threatens the existing suppliers to undergo a drastic changepulling away from existing expertise they have gained over the years, cateringto the IC engine car. The existingcollaboration between the automotive OEM’s and suppliers enabled the suppliers togain unique knowledge base accounting to more than 65% of added value in automotiveproduction and 32% in Research and Development 13. This unique knowledge basedon experience requires time to be developed into new suppliers. The nominationof electric vehicles for the future requires identifying methods of unificationand standardization of entities like charging point thereby the harmonious integrationof suppliers and OEM’s is a prerequisite to deliver to the needs of the market.
The literature lacks intricate details for the analysis of financial details ofthe existing and new facilities of the supplier to assess the progress oftechnological change towards alternative powertrain as the details areprotected within the company. To derive thestrategic details we first observe the existing forces of change laid out forthe future from the stakeholders. As part of the literature study we analyzethe product and technology change that is most likely going to take over thefuture.
To develop a perspective to view the impact and further checkindividual suppliers for competence that drives the change in their businesses.
