The Top Tier Consultants round table on the Portfolio/ MAGE conference discussed the effects of vehicle electrification on the supply base in Central and Eastern Europe. This was the first time since we hold such discussions that there was no electrification denier around the table anymore. From now on the only question is the speed of change and the disruption it will leave behind.
According to the Top Tier Consultants estimates, 70% of Suppliers in Central and Easter Europe are affected negatively due to involvement in internal combustion engine (ICE) technology. The only silver lining is that the shift in manufacturing from Western Europe to this region will create ICE clusters here, getting a lot bigger slice of the shrinking cake. Therefore suppliers buy about five years’ time before orders run out.
The only question is if these favored Suppliers can take advantage of the temporary good times and transform their business right away. Despite the very clear future path, not all will survive the disruption caused by vehicle electrification in Central and Eastern Europe!
The round table presentation is available upon request!