HOW TO GO GLOBAL IN TIMES OF
GEO-ECONOMIC SHIFT AND DISRUPTIVE CHANGE?

New trade agreements have emerged as one counter measure of gaining new economic benefits as well as a geo-economic shift of supply chains towards countries with low cost manufacturing capabilities and well-established covid control and counter measures. Another aspect and impact on global trade are CO2 emissions targets, which vary on specific country requirements and measurements for target fulfillment. These are only a few examples of this distortion of global trade. Many automotive and non-automotive component suppliers sought a competitive advantage by providing their customers with a superior technology based upon intensified research and development, and as a strategic asset for increased competitiveness. Referring to the last decade a supplier’s competitive advantage in terms of technological innovation means more and more about the capabilities of successfully incorporating disruptive technologies into the existing product portfolio. For example, stationary power supply, and new energy companies have switched from nuclear-to-electro to hydrogen fuel cell-to-electro energy production processes.

The conventional combustion engine-driven passenger cars are about to be replaced by an increasing number of electric vehicles resulting in a geo-economical shift from traditional centers and hubs of technology leadership in the US and the European market towards new centers in Asia-Pacific. To retrace the cause of these developments, the macro- and micro-environmental changes have to be taken into account. Changes in energy supply and energy-related greenhouse gas emissions resulted in environmental and political decisions of increasingly stricter emission standards worldwide forcing companies of the various industry sectors to respond with new innovative concepts. At the request of the G8, the International Energy Agency (IEA) has developed a series of roadmaps for technologies that aim at significantly reducing energy-related CO2 emissions. One of these technology roadmaps concerns the Electric Vehicle.

Although this roadmap only identifies possible ways of evolution and market penetration, major OEMs such as General Motors, Volkswagen, Toyota, and Nissan have already heavily invested in such technology targeting at having replaced major parts of their ICE-based vehicle fleets with battery electric (BEV)-based powertrains by 2025 and phasing out ICE-based powertrains latest by 2040. This also requires an increased investment in thermal management solutions for e.g. battery electric cooling and related applications. Another technology trend concerns the increase of safety and convenience aspects in the transportation industry sector resulting in an increase of development activities and vehicle integrated applications of IoT (Internet of Things) and AI-based Infotainment systems with Asia-Pacific based automotive manufacturers and start up companies striving for even taking a global lead in such technology. So, how to go global in times of geo-economic shift and disruptive change?

by Achim N. Schulz