Supply chains ‘absolutely critical’ for industry’s electric future
“As we move into these new technologies, [supply] problems will come to the fore for many manufacturers.”
Currently, many car makers have more solid supply chain foundations for their ICE cars, but with new and complex parts needed for electric vehicles - coupled with the recent global shortages of semiconductors and other high-tech materials – competition is fiercer than ever. Speaking during Autocar Business Live, Wells was backed up by Ineos Automotive operations director Erik Torseke, who said the car maker might not have survived if not for its strong supply links.
He said that the Jim Ratcliffe-owned start-up built its base from core parts outwards – such as with its BMW-supplied engine and other tier one companies like Bosch – which meant smaller suppliers were less worried Ineos would be a risk to them. The relationship with the big companies was critical in persuading the smaller ones to commit.
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