What is the future of many automotive parts suppliers? (2022)

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Future of many automotive parts suppliers

Both the sport of racing and the construction of vehicles for series production can benefit from the knowledge and experience of well-known automotive brands and the responsiveness and reliability of well-known suppliers.

Future of many automotive parts suppliers

Few construction series produced by manufacturers of well-known brands are assembled using components sourced from within the company.

Instead, reliance is placed on specialists in electronics, braking systems, and the like. The gradual progress of the industry as a whole and, in particular, the ever-increasing demand for electric vehicles will bring about significant shifts in the automotive industry in the years to come.

In extreme cases, it even causes jobs to be lost in various companies that provide subcontracting services.

The increasing interest in electric cars and the repercussions of this trend

When viewed from an ecological vantage point. It makes perfect sense to transition from internal combustion engines to electric models in stages.

The performance results continue to improve as the years go on, and the range keeps expanding. On the other hand, the progression of technology invariably results in the demise of many businesses that were formerly in charge of the production of automotive components.

The future is somewhat uncertain for those producing engines, axles, and transmissions. In contrast, those who supply electronic components can face this evolution with a greater sense of calm.

Because of the rapid pace of technological advancement, it is difficult to provide accurate predictions regarding the number of small and medium-sized businesses that will go out of business.

If you don’t count the indirect jobs that the industry’s many subcontractors create, the automotive sector is directly responsible for employing more than 250,000 people in Spain alone.

The primary factor determining their job security over the next 12 months relates to the employer’s approach to business.

Difficulty in obtaining high-quality replacement parts for used automobiles

The failure of long-standing supply companies to continue operations can also be an issue for some drivers.

The majority of replacement parts are typically original components sourced from the suppliers of the major automotive brands. This is because many drivers place a premium on brand-name quality for their personal or motorsport vehicles.

When the initial distributors go out of business, it won’t matter if you order the parts from a specialized repair shop or a well-known online marketplace; as soon as those distributors stop doing business, it won’t be possible to obtain the usual level of brand quality.

In light of this, the various automakers will be compelled to guarantee the supply of parts for established construction series for the foreseeable future. This will be the case despite the politically desired transition to electric motoring.

The businesses that provide the supplies will likewise be required to plan and investigate the possibility of refocusing their efforts.

The question arises as to the degree to which combustion engines and well-known components for automobiles will continue to be utilized in racing, as well as the nature of the demand placed on specialized businesses.

What is the future of many automotive parts suppliers

Autonomous vehicles present the automotive industry with yet another challenge.

In addition to increased reliance on electronic systems, the introduction of autonomous vehicles is expected to transform the industry within the next decade or two completely.

This automobile category will be developed primarily as an integrated system, and it will not require components sourced from various manufacturers.

There aren’t very many companies in the Spanish-speaking region that specialize in the production of corresponding complete systems at the moment.

The only way to know whether or not this change will affect existing businesses is to wait until the future.

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