Automotive News Europe - April 2020 - 25

AUTOMOTIVE NEWS EUROPE

SUPPLIERS

injection in a combustion engine. This
crossover usage also applies to several
sensors, thermal management systems
and other products.
How much of your current business
is e-components?
In 2019, components for hybrids and
electric vehicles accounted for about
200 million euros of our sales. But if you
factor in a solid annual growth rate for
us, which we target to exceed the forecast growth rate for the entire electrified
car market, you end up with a much bigger business rather quickly.
The European and U.S. markets appear to have different goals when it
comes to electrification. How will Vitesco best serve both?
In Europe, there is a strong regulatory
push that is linked to fines that, according to Bloomberg estimates, could
reach $39 billion for the automotive
industry, if the 95 grams per kilometer
CO2 fleet average is not met. Regulations are also pushing the technology in
China. In the U.S., current CO2 regulations are expected to remain more relaxed, but we see another factor pulling
electrification there: the fun-to-drive
aspect. People appreciate the torque
offered by the electric motor and the
immediate acceleration they get when
they step on the pedal. That is driving
the demand there.
Should the fun-to-drive factor be emphasized more in Europe?
It's always better to excite people about a
technology, because they will then ask for
the products. The fun factor that people
experience with these cars gives me hope
that the move toward electrification will
accelerate. It's mobility without regret.
How will the creation of the new company help you in traditional internal
combustion powertrains?
That portion of our core business accounts for 80 percent to 90 percent
of our sales today, and we see a lot of
growth potential here for the next 10
years. However, a key issue we focused
on when we defined our vision and mission was to look beyond 2030. The combustion engine is forecast to die around
2035, which means the last development
on those engines will be in 2025-26. That
will have a huge impact on the next five or
six years. Therefore, we knew we had to
understand what would happen beyond
2030. Our goal is to make sure we are
well equipped for success beyond 2030.

APRIL 2020

Reports say Vitesco has already won
business with Volkswagen Group on
the ID family for power electronics.
How crucial is that for Vitesco?
That information is inaccurate with regard to the power electronics. What I can
confirm is: If you look at the top 10 electrified platforms for 48-volt mild hybrids,
plug-in-hybrids and battery-electric vehicles for the coming years [according to
IHS Markit], we supply products in the
majority of them -- be it electronics or
electrification components.
Does the fact that electrified powertrains are not in great demand in
North America dampen your enthusiasm for growth there?
The main difference between North
American and other regulations is, that
current regulation is very strict on pollutant emissions, but less on CO2. Therefore, the regulatory push on electrification is lower. Our strategy does not rely
on one scenario. It covers all powertrain
options. Based on current market studies the electrification market is increasing rapidly in Asia and Europe and that
even if the U.S. trails it won't change the
overall picture. For the time being, all
the technical solutions, meaning batteryelectric vehicles and plug-in hybrids, are
evenly spread out in the U.S. We don't
see a clear electrified powertrain winner
in the U.S. at this moment, which is fine
because we serve all sectors.
Is it fair to say the 48-volt mild hybrid
is the clear winner in Europe?
We don't believe there is one winning
technology. There will be a mix of technologies. Also, it really depends on the

strategy our customers have chosen to
electrify their fleets. If you chose the
48-volt mild hybrid you don't have to
completely redesign the powertrain, but
if you want to see a significant impact on
your fleet CO2 average, you have to use
this solution across large parts of your
fleet. Other customers focus on fullelectric vehicles, because it's possible to
reach the same CO2 target, if these zeroemissions cars account for 10 percent to
15 percent of their fleet. So it's a tradeoff between "low effort at high quantity"
and "high effort at low volumes." That
being said, we have seen a very strong
push in Europe toward 48-volt mild hybrids, so you might call it an early winner
for the mass market. But other electrification options are also on the rise: Over
the next few years automotive customers are expected to launch numerous
new plug-in hybrids and electric models
at even more attractive prices and the
charging infrastructure has significantly
improved. So pretty soon there will be
electrification options for nearly all use
cases and budgets.
We have a slowdown in vehicle production, Brexit, tariffs and a pandemic. Not exactly the perfect conditions
for a new company to be born. How
do you overcome that?
The feedback that we are getting from
various parties is encouraging. I consider this a signal that our strategy is
solid. That being said, the coronavirus
outbreak and its consequences are not
helpful. The target of spinning off remains the same, the upcoming weeks
will show which implications we have to
face with regards to our timeline. ANE

Vitesco will supply its fully integrated electric axle drive system to PSA
Group and Hyundai. PSA will use the system on models underpinned by
its e-CMP platform such as the Peugeot e-208 and Opel Corsa-e.

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Automotive News Europe - April 2020

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