Examination of strategic challenges for powertrain component suppliers to fulfil the changing demands of OEMs during the transition from traditional combustion engines to the electric mobility

Abstract

Several different forecasts regarding the market shares of different ICE-technologies (Internal Combustion Engine - technologies) and electrified cars makes a prognosis of the needs of engine parts nearly unpredictable. Especially during actual nomination processes of Diesel engine parts OEMs have to cover a broad spectrum of scenarios which results also in new evaluations of suppliers. Challenging requests of the customers purchasing departments shouldn’t exacerbate offer processes, but rather prepare part providers and make them aware about upcoming difficulties. Therefore the examination shall cover the biggest challenges for suppliers during the transition to electric vehicles in the automotive premium segment and show how to prepare themselves for the nomination process. The changing demands and priorities of original equipment manufacturers during nomination processes of combustion engine components and the suppliers possibly to prepare themselves for requests for quotation (RFQ) concerning upcoming combustion engine projects will be analysed. To create a meaningful overview suppliers will be evaluated with a questionnaire, generated in collaboration with the strategic purchasing department. The readiness regarding the volatility of the market and the general future orientation shall be identified and also integrated in the final decision making process. By comparing the results of several part providers of BMW (Bayerische Motoren Werke) which were finally nominated for combustion engine projects from 2020 onwards the relevance of the new criteria shall be proofed. Deviations have to be analysed to get an idea under which circumstances suppliers were selected with at least single negative evaluations. By showing the necessity of fulfilling these new demands the most important points for applying suppliers are summarized to provide some identified key characteristics for a successful nomination. Besides the overall comparison of theoretical requests and real criteria for a supplier nomination especially the analysis of exceptions shall give an idea about the possibility to get nominations without fulfilling all demands of the OEM. After the analysis of combustion engine parts the differences to electric vehicle components shall be shown and how traditional suppliers can follow the path to the EMobility. Finally the necessary adaptions of the questionnaire shall be examined to identify the volatility challenges also for electric component RFQs.