Global suppliers need modularity and flexibility in the EV age

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Electric vehicles bring with them high development costs and large expenses for retooling plants. To get around that, OEMs and tier suppliers must work together to develop flexible, modular production systems, according to panellists from ZF and ABB at last week’s AMS Livestream on electrification.

“[The change to EVs] is really picking up, also for the OEMs – they’re revising their numbers they’re revising their volumes, revising their strategies, said Arno Güllering, ZF’s senior vice president operations – division electrified powertrain technology. “Also the OEMs are a little bit overwhelmed by the speed which is picking up now.”

He adds that for a powertrain specialist like ZF, most of the legacy equipment becomes outdated for EVs and completely new lines are needed. As a result, OEMs and Tier 1s are looking to enter into strategic partnerships to bundle R&D and industrial engineering capacities and spread costs.

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