With California going all-in for electric vehicles, does this mean that the North American auto industry is nearing a tipping point?
You may be tired of all the speculation about how quickly the auto industry will more fully embrace EVs and phase out traditional internal combustion engines, but every new bit of news seems to be pushing that date more firmly in the near future. The latest news, of course, being California regulators on Aug. 25 said the state would ban the sale of traditional ICE-powered cars by 2035. That matches the date set to halt ICE and diesel cars in Europe approved earlier this year by the European Parliament.
The big questions, of course, are whether automakers, suppliers — and, crucially, car buyers — are all on the same timeline as legislation.
As PN's Sarah Kominek reported earlier this month, consultants at Plante Moran say that to get to that future envisioned for 2035, every part of the auto industry must work together. Demands related to everything from connectors to lighter body parts will drive requirements "down through tiers of suppliers," Ted Morgan, principal at Plante Moran, said during a recent webinar. But those changes also must recognize that suppliers need to be fiscally healthy through the process.
"This is still going to be your supply base going forward," he said. "You want them to ramp up on time and on budget for your new electric vehicles that you're betting the company on."