The auto industry is moving from internal combustion engines to electric vehicles. SME Media interviewed two Honeywell executives by email concerning issues related to the change.
Alec Falzone, lead business manager, Honeywell Process Solutions, and Rick Winick, vice president and general manager, Honeywell Mobile Refrigerants, fielded questions.
What follows are their answers and the questions.
SME Media: How do automotive suppliers deal with current stresses?
(Alec) The industry is faced with the challenge of supporting legacy ICE platforms and the fast-growing EV market for the foreseeable future. ICE vehicles will still be on the road for years to come. Suppliers should consider developing strategies to support the dominant EV market of the future, but also to have a diversified product portfolio to support ICE platforms. For example, they should consider working with automotive OEMs to implement component commonality across their ICE and EV platforms.
(Rick) Additionally, the EV market continues to be challenged by the idea of range anxiety. While there has been progress in driving range and most new EVs can travel more than 250 miles on a single charge, with some reaching greater than 350 miles of range, research continues to show that this remains among the top reasons consumers hesitate in making the switch. EV makers must advance their efforts to reduce the battery power drain that can happen while driving, while effectively regulating cabin temperature, motors and batteries.
SME Media: What are the choices facing suppliers?
(Alec) Consumer adoption of EVs has occurred much faster than many people anticipated, with not only new platform components such as electric motors but also a completely new source of energy with lithium-ion batteries. Those wishing to survive in the industry must implement innovative strategies to support a digitalization and electrification of transportation.
SME Media: OEMs traditionally have put a lot of pressure on suppliers. How is the current state of the industry making things worse?
(Alec) Recent events exposed the already existing stress fractures of the global “just-in-time” inventory strategy used throughout the industry. Upstream and downstream production pauses in the value chain occurred at different times, sending out a series of ripples that continues today. Everything from raw material production to vehicles rolling off the assembly line was detrimentally impacted. The combination of increased consumer demand via historically low interest rates, the evolution of the labor market, and supply-chain disruptions all while the entire industry is transitioning towards EV platforms created the perfect storm we have been experiencing.
(Rick) In addition to this, with recent legislation calling for the global phasedown of high-global-warming-potential (GWP) materials, automakers need to transition to lower-GWP solutions to stay compliant. This includes refrigerants in thermal management systems to power EVs, which help improve range, putting further stress on suppliers.
SME Media: Can auto suppliers survive what has been described as the biggest change in a century?
(Alec) EVs have more component and material overlap with ICE vehicles than one may think. The digital and electrification transformation has accelerated with recent examples such as lane assist technology, Wi-Fi/Bluetooth connectivity, and collision sensors which are being used in both types of vehicles today. Automotive OEMs and their suppliers can absolutely survive this environment by continuing their evolution towards a more electrified and safer future but still need to implement component commonality across their platforms since there remains, at least in the near term, a tremendous need for ICE components.
(Rick) Fortunately for those suppliers already driving towards the EV transition, refrigerants like Solstice® yf (HFO-1234yf) offer an optimal set of thermal properties to efficiently heat and cool EVs and meet stringent global requirements for low-GWP materials. Over the past decade, the solution has surpassed the auto industry’s expectations related to its reliability and ease of adoption and is now universally regarded by the industry as the preferred vehicle comfort solution. Its combination of high performance and sustainability enables suppliers to not only survive, but thrive in the foreseeable change the industry is about to face.
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