Other

Future of many car parts suppliers is uncertain

In the racing sport as well as for serially produced cars on Europe’s roads – in addition to the experience of world-famous car brands, a number of renowned car parts suppliers guarantee dynamics and safety.

Almost no model series of a well-known brand manufacturer entirely consists of parts coming from its own company. Instead, it relies on experts for electronics, braking systems, etc. Presently, the growing interest in the segment of electric mobility is causing considerable changes. In the most extreme case these changes eventually might occur at the expense of jobs in several supplier companies.

Growing interest in electric cars and its consequences

As to ecology, the gradual switch from combustion to electric engines makes sense. Every year higher performance values and a wider action radius are reached. However, the technological revolution causes companies, supplying traditional car parts to become superfluous. Particularly specialised companies for engines, gear, axles, etc. expect a bleak future, whereas car parts suppliers of electronic components await future developments more resignedly.

Even when it is difficult to make concrete assessments regarding income, a number of small and medium companies might be under threat due to the technological revolutions. In the UK alone, the automotive industry provides employment for some 700.000 people. The security of their employment in the coming years depends for a great deal on the operational specialisation of the suppliers.

Purchase of high-grade parts for used cars will become more difficult

For the individual driver as well, the closure of established car parts suppliers can become a problem. Many drivers of private cars or in the racing sport place great value on branded quality and therefore, for spare parts only original parts of the suppliers of major car brands are considered. It doesn’t matter if these are ordered in the garage or in renowned internet portals such as Autopartspro.co.uk. If a supplier shuts down, the usual branded quality might soon no longer be available.
The individual car manufacturers are urged in view of the switch to electric mobility, which is called for by politicians, to guarantee the supply of car parts for established model series for years to come. At the same time, suppliers are asked to look forward and focus on taking a new direction. Question remains, to what extent traditional combustion engines and car parts will be maintained in racing and furthermore be in demand for professional companies in the industry.

Autonomous driving is another challenge for the industry

In addition to the increasing electronisation, the switch to autonomous driving within one to two decennia will change the market considerably. These vehicles are primarily designed as a complete system and do not depend on parts from different suppliers. Presently, very few companies in Europe are able to build these complete systems. If and to what extent it comes to switchover of the existing companies, the future can and will show.