As a result, automakers will need to ensure they’re keeping up with development on internal combustion engine vehicles as they introduce EV models, said Ryan Martin, industrial and manufacturing research director at ABI Research.
“Incumbent automakers also need to contend with an influx of new OEM entrants beyond Tesla, including Lucid Motors, Rivian, and Fisker,” he added. “These market pressures will require an elevated level of new model ‘programs’ that will address operational capacity constraints, which have been largely overlooked.”
Since vehicles are made with thousands of parts, sourced from a global supplier network and designed for a specific OEM model or platform program, the current disruption could upend plans.
“From ABI Research’s ongoing research, automotive program management has not received the same managerial attention or level of investment as the supply chain that it supports,” said Jake Saunders, vice president at ABI Research.
And suppliers are stretched thin as it is. “Unless automakers and suppliers take the initiatives needed to expand overall program launch capacity, their electrification goals are under threat,” Martin said.