As the automotive industry rapidly shifts towards electrification, one major parts supplier explained during a recent conference how it’s positioning itself to be a leader in the electric vehicle (EV) revolution.
Ryan Devine, director of global product management, engineering and program management at Dana Incorporated, gave insights into how his company is making strategic moves to ensure it remains a key player in the evolving mobility landscape.
At the MEMA Aftermarket Suppliers Technology Conference, he gave a snapshot of the company’s current state and its journey into the EV market. The breakdown of Dana’s sales reveals the growing importance of the EV and aftermarket segments with about 10 per cent of its business related to EVs, which is on par with its entire aftermarket business. Both, Devine noted, are perhaps the most profitable segments of the company.
Recognizing the industry’s shift towards electrification, Devine noted that Dana has been proactive in preparing for the future. “We knew that the market was going to change drastically. We’re going to have our customers asking us, on the OE side, to change our propulsion technologies. So they had the foresight to go out and make some pretty hard, pretty interesting bets very early on in this process.”
The company acquired eight different companies since 2018 to build out its EV “technology stack” to be a market leader.
One acquisition includes TM4, a joint venture with Hydro Quebec, to develop high-voltage motors, inverters and e-drive systems. Dana also purchased SME Group, a company focused on low-voltage motors and inverters, as well as the drive systems segment of the Oerlikon Group. But there was the challenge of putting all these pieces together. So they bought Canadian company Nordessa, which specializes in e-powertrains.
“They’ll put in the motors, the inverters; they’ll complete systems. And it includes everything you need — basically making rolling chassis,” Devine explained.
This strategic move allowed Dana to offer its customers a one-stop-shop solution, as many were not yet ready to make large capital investments in manufacturing.
Then there are gaskets for battery enclosures and cooling systems that the company has gotten into.
“So you think about the future, these are a lot of the parts that five to 10 years out are going to be hitting the market,” Devine said.
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