9.1 Tier 1 Suppliers

 

To measure of
impact in the business of 15 Tier 1 suppliers, we identify the component
segment they are supplying that will be eventually phased out or impacted by
the change. Followed by the supplier’s sustainability plan of new businesses
they are venturing to retain their business in the new age of electro mobility.

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9.1.1 Robert Bosch

 

Robert Bosch
founded in 1886, by Robert Bosch is one of the largest suppliers of the
automotive industry with sales revenue of 73.1 billion euros in 2016. It
employs roughly 389,000 associates worldwide with 133,974 employees in Germany
in 2016. 69 Bosch group operates in four-business sectors Mobility solution,
Industrial technology, Consumer goods and Energy and Building technology. The
mobility solution sector consists of gasoline systems, diesel systems, chassis systems,
control electrical drives, starter motors, car multimedia, automotive electronics,
automotive aftermarket and automotive Steering. Bosch has ample competence in
terms of technology and capital to bring in revolutions of change. The company
is working on shifting towards digitalization as fast as it could. The focus of
the company is to bring solutions with the vision for a connected life. 72

 

The company is
gaining on the opportunities to enter into the market for alternative
powertrains with its product systems for hybrid, plug-in hybrid and electric
cars. However, the corporate culture of Bosch is conservative and security
conscious, which can be a hurdle to cross as all other firms are innovating
rapidly for development of alternative powertrains. In addition, Bosch has
extensive knowledge base from years and years of experience in internal
combustion vehicles. Bosch is the key supplier of engine electronics and the
injection systems of traditional vehicles. The supply for internal combustion engine
form is significantly bigger electric or hybrid vehicles. 70

 

Bosch is a
supplier for all three Volkswagen, Daimler and BMW German automakers. It manufactures
various powertrain parts for the internal combustion engine cars. The major
parts manufactured are Engine management systems, Fuel supply and injection
systems for petrol engine and Common-rail systems for diesel engine, Ignition
systems, Starter motor, Connectors, air-flow sensors, electronic diesel
control, exhaust-gas management systems such as Denoxtronic, Electric drive
units, Power electronics, Battery systems, Transmission technology. 72

 

All of the above
parts along with newer parts built towards the electric vehicle transformation
are compiled under the mobility business sector. This sector for Bosch accounts
to 60% of the sales revenue globally in 2016 and is the fastest growing sector
with 7% annual growth in 2016. 72 From 2018 Bosch plans to combine all
electric mobility into one unit targeting to become a single source supplier
for electric mobility powertrain parts.

 

Bosch leads the
way for suppliers in the path of transformation from traditional to electric
and has made a number of investments in research of design and manufacturing of
supply parts with makers to accelerate the change. The current investments of Bosch
in case of electric car parts are on charging station, adaptors, cables and the
cooling systems. With the supply of radar sensors for Tesla for the application
of self-driving cars, the long-term outlook is focused on the development of
systems and sensors that expedites the development of autonomous driving, digital
connectivity of the vehicles and the infrastructure. 71

 

9.1.2 Continental

 

Continental is
another leading supplier for the German automotive industry, founded in 1871.

In Germany, Continental has split its products into two groups. One is the
rubber group that consists of tires and conti-tech contributing to the
production of tires, air spring systems, conveyer belts, elastomer coatings, fluid
solutions, power transmission and vibrational control. The second group is the
automotive group that consists of 3 catagories chassis & safety, interior
and powertrain. The chassis & safety produces parts such as brake systems,
passive safety equipment and sensors and advanced driver assistance systems.

The Interior group produces instrumentation for driver interface, infotainment
and connectivity parts, intelligent transport systems and security related
parts. The power train group produces the engine systems, fuel and exhaust
management systems, sensors and actuators, transmission and parts for hybrid
electric vehicles. The powertrain group has 37,500 employees with sales revenue
of 7.3 Billion euros, which is 18% of the overall revenue of the company. 74

 

The main parts
that continental supply to the internal combustion engine are engine control
units, fuel deliver modules, component sensors, injection systems and
turbochargers. Majority of parts by continental are electronic parts that are
relatively cost less and not much tool intensive to manufacture in comparison
with parts such as piston or cylinder block.

 

Continental
already has a strong expertise in the fields of sensors, electric motors and
electronics and thus has a potential to dominate the market for alternative
powertrains with its flexible, open and decentralized corporate culture.

Continental is very active in the design of mobility services working towards a
vision of zero accidents, clean air and full interconnectivity. 74

 

Continental is
primarily investing in the security, connectivity and autonomous driving
technology as part of its portfolio for future business in the automotive
industry. It also focuses on the driverless vehicle with its investment in the
company EasyMile SAS for the development of cutting edge technology for
driverless cars to be positioned in the new age of urban mobility. Continental
has developed a platform CUbE Continental Urban Mobility Experience for the
study of real conditions for testing and advancement in technology. The key
activity in progress for continental is the development of a sensor portfolio
of advanced driver assistance systems, new brake concepts, passive safety
solutions, new human-machine interface concepts plus electric drive train
technologies. With time, the progress in this area will contribute continental
to position itself as a supplier with expertise in the sensors for adoption by
autonomous driving fleets. EZ10 is a 12 person autonomous shuttle from
continental first released in 2014 currently in testing phases that will soon
be prepared and positioned for large-scale adoption. 7374

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