European e-mobility shaping the future for global auto suppliers, strategy expert warns

Speaking at this week's Frankfurt IAA International Motor Show, US strategy consultant Paul Eichenberg advised automotive suppliers seeking to protect or grow their business as automobile electrification rapidly emerges in Europe to ‘build the future now’. Eichenberg said that Europe is leading the automotive electrification charge globally. German automakers are already developing the electric technologies that will help them meet the next regulatory hurdle for emissions – the proposed Euro VII rules –
September 8, 2017 Read time: 2 mins
Speaking at this week's Frankfurt IAA International Motor Show, US strategy consultant Paul Eichenberg advised automotive suppliers seeking to protect or grow their business as automobile electrification rapidly emerges in Europe to ‘build the future now’.


Eichenberg said that Europe is leading the automotive electrification charge globally. German automakers are already developing the electric technologies that will help them meet the next regulatory hurdle for emissions – the proposed Euro VII rules – which are expected to come between 2025 and 2030.

Over the decade of 2020 to 2030, which Eichenberg calls the ‘decade of electrification’, the European market will define the future of automotive powertrain architecture.

He claims that, as e-mobility progresses, automakers will turn to a new group of suppliers to be the system integrators for the electrified powertrain – companies with both electrical expertise and the scale of consumer products manufacturing, such as 954 LG, 5392 Toshiba, 311 Bosch and 598 Panasonic. He said other suppliers who want to participate in this mega trend need to start aligning now with those giants, before they are shut out of the game.

E-mobility will cause more disruption to the automotive supply chain than it has ever faced, Eichenberg said. To succeed amidst this disruption, auto suppliers – especially those with engine, transmission and exhaust components in their portfolios – will need seven or eight years to transform their companies to be able to compete in the new ecosystem.

Eichenberg estimates that as many as three-quarters of the world's top 100 automotive suppliers will be affected by the global industry move toward electrification.

In his white paper, titled: "Electrification Disruption: How not to get shocked, jolted and fried by the coming shift in automotive power sources," Eichenberg says that unless they rethink their approach and secure electronics and software competencies, few traditional auto suppliers will be able to succeed in the electrified auto future.

For more information on companies in this article

Related Content

  • Prince Constantijn calls on ITS sector to support start-ups
    March 20, 2018
    Entrepreneurs need collaboration and support from established ITS companies to solve smart mobility issues, urged a member of the Dutch royal family, speaking at the official opening of Intertraffic 2018. His Royal Highness Prince Constantijn van Oranje said: “When we think about smart mobility and MaaS, at some point we turn to start-ups.” The Prince, who is special envoy for the Dutch government’s StartupDelta initiative, suggested that entrepreneurs were not coming up with ‘crazy’ ideas – rather, they w
    Read More
  • US infrastructure: once in a lifetime
    April 23, 2021
    Expectations are sky-high for Amtrak Joe and Mayor Pete as they use infrastructure spending to rebuild the US economy post-Covid – and ITS firms should be able to get a share...
    Read More
  • Connected Places Catapult: let's get holistic
    June 17, 2019
    Two UK organisations - Transport Systems Catapult and Future Cities - have merged to form Connected Places Catapult. Helen Wylde explains what this new start is designed to achieve Changing towns and cities, changing transportation…changing the world – it’s all too easy to sound idealistic. But however sensible a pessimistic outlook might be, it in no way mitigates the absolute urgency of our need to succeed. The coming together of Transport Systems Catapult and Future Cities is significant because
    Read More
  • The search for travel management's Holy Grail
    October 10, 2018
    Combining accurate network estimates and forecasts with real-time information is the way to deal with traffic hot spots. Alan Dron looks at products which aim to achieve just that. Traffic management authorities have for years been trying to get ahead of the game. Instead of reacting to situations, they want to be able to head them off as they occur – or even before they happen. Finding that Holy Grail of successfully anticipating problems will save time, tension and tempers on city streets. Two new system
    Read More

Highlighted Content