How innovations in technology, development processes
and organization can help deliver future low-carbon cars – and commercial sustainability for automakers
The trend towards the increased electrification of passenger car powertrains – whether through hybridization or substitution with pure battery-electric architectures – is now firmly established, as automakers strive to improve fuel economy and reduce CO2 emissions.
However, the continuation on this path of increased electrification is, as we show in this paper, effectively essential if US 2025 CAFE and EU targets for 2021 and beyond are to be met. To achieve these and likely future targets, a new level of market penetration of electrified powertrain vehicles, substantially higher than that of today, will be required.
As those customers who would be attracted to the environmental branding of such vehicle types will presumably already have switched as early adopters, it is logical to assume that – in the absence of a significant hike in fuel prices, or other direct incentives for the consumer – this shift in the market will need to be achieved based on a more value-driven offering.
In this paper, we evaluate the current position with regards to passenger car powertrain electrification, and demonstrate how the market is likely to develop throughout the next ten years and beyond. We also look at the organization of powertrain product development, and how this might be adapted in the future to most effectively and efficiently accommodate the demands placed upon it. By adopting the approach that we outline, we believe that automakers will be able to incorporate the requisite skills for the electrified powertrain products of the future, while also delivering the value-based products that will deliver both the environmental goals of regulation, as well as long-term commercial sustainability.