Automotive News Canada - November 2022 - 4

4
* NOVEMBER 2022
Double-duty
for suppliers
It's not a case of either-or
as EVs and ICE vehicles
coexist and both need
parts at the same time
By GRACE MACALUSO
MANAGING EDITOR
DAVID ULRICH HAS ONE FOOT
firmly planted in the internal-combustion-engine
market and the other in the
emerging electric-vehicle era.
As president of KB Components Canada
Inc., Ulrich steers two Windsor, Ont.-area
parts operations. Plant 1 builds injection
moldings for fuel tanks, and Plant 2 supplies
injection moldings for parts supplied
to U.S.-based EV startups, including
Lucid, Rivian and Lordstown Motors.
" There's no question the industry is
going to move to EVs, " Ulrich said, " but
it's going to take a
while. "
McCabe:
Battery-electric
and hybrid
vehicles are
predicted to
make up more
than 60 per cent
of Canadian
production in
2025, " and then
we're off to the
races. "
FILE PHOTO
As the auto industry
shifts toward
electrification from
internal-combustion
engines (ICE), suppliers
face a dicey balancing
act: Serving
their core customers
while gaining a
foothold in the North
American EV market,
expected to reach its
tipping point in 2029.
By then, the number
of hybrid and battery-electric
vehicles
(BEVs) built in North
America will rise to
52 per cent of the total
produced from 14 per
cent in 2021, said Joe
McCabe, CEO of U.S.based
AutoForecast
Solutions, an industry forecaster and consultancy.
" That's
a nice, healthy balance between
BEVS and the hybrids, " McCabe said
Oct. 19 during the Automotive Parts
Manufacturers' Association's annual conference
in Windsor. " But there is still a
substantial amount of ICE vehicles in
play. "
Ulrich: Serving the needs of
internal-combustion customers while
courting new business related to
electric vehicles. SUPPLIED PHOTO
In Canada, BEVs and hybrids are
expected to make up more than 60 per cent
of light-vehicle production in 2025, " and
then we're off to the races, " said McCabe.
The Detroit Three have announced billions
in investments designed to transform
their Canadian operations into EV
assembly plants. As well, Stellantis and
South Korea's LG Energy Solution plan
to open a $5-billion battery cell plant in
Windsor in 2025.
" They're monster wins for a very stable
industry, " said McCabe.
KEEP CORE, FIND FUTURE
The challenge facing suppliers is how to
exploit future opportunities in EVs without
jeopardizing their current customer
base, he said.
" When we see this kind of [EV] trend
happening, this ball is rolling, it is not
going away, " McCabe said. " You still work
with [core] customers, [but] you've got to
start looking at their [future] product portfolio.
Look at these new areas, but don't
give away the farm. "
In Windsor, the local economic-development
agency has held workshops designed
to help suppliers manage the shift. About
35 companies attended a session in late
October, said Stephen MacKenzie, president
of Invest WindsorEssex.
" It's really a primer on electric vehicles
and batteries and the types of
parts that are going to be needed, "
MacKenzie said of the workshops.
" The idea is you're a company
supplying to the industry
right now; you know the trend
is going EV, and it helps you
to analyze: 'What am I doing
today that is still going to be
needed? What am I doing today
that might become obsolete in a
couple of years? What am I not
doing today that might be needed
in the future, and what will I
have to do to access that?'
" It's about assisting to identify
opportunities and develop
their strategic planning. "
A LIGHT-WEIGHTING GAME
At CenterLine Ltd. - a
Windsor-based supplier that,
among other things, builds custom
automated welding and
assembly lines - the current
roster of customers includes
both legacy and EV manufacturers,
said Larry Koscielski,
vice-president of process and
technology development.
The company, with 800 of
its 1,200 global employees in
Windsor, is well-positioned for
the future since it doesn't rely
on the ICE powertrain market
and has a strong culture of innovation,
said Koscielski. " We do
very little with drivetrain, " he
said. " The rest of the vehicle
hasn't changed much. Seats are
still the seats. "
CenterLine also continues to
" innovate around the changes " facing the
sector, Koscielski said, noting that solutions
are needed to reduce the weight of
battery-laden vehicles.
" Light-weighting has been a thing for a
long time, even before EVs, " he said. " But
now you add a 600-pound battery, and you
have to figure out how to take that weight
out. "
Strategic planning at KB Components
includes expansion to meet growing
demand from its EV customers and finding
new markets for its ICE plant, Ulrich
said.
One KB Components Canada plant builds injection moldings for fuel tanks, while
another supplies injection moldings for parts for EV startups. SUPPLIED PHOTO
Rivian, for example, is expected to
exceed sales forecasts this year and in
2023, and it will be adding a second
shift at its Illinois plant, he
said.
MacKenzie:
Suppliers need
to analyze,
" What am I
doing today that
is still going to
be needed? ...
What am I not
doing today that
might be needed
in the future? "
FILE PHOTO
" We're looking to double our
square footage " in the Windsor
area, Ulrich said, adding that
the new location would house
both plants under one roof. The
expansion is expected to increase
the total number of salaried and
hourly employees to 416 from 316
by mid-2023, he said.
Ensuring the long-term future
of its fuel-tank operation will
require new customers, including
those outside of automotive,
Ulrich said. " That plant is
well-positioned, at least, for the
next five years, " he said. " [But]
we need to reinvent it, and we
discuss that every week in our
strategic meetings. Between the
two plants, we're 99 per cent
automotive-driven, ... so, we're
looking at how do we diversify
our product lineup into nonautomotive
areas. "
As well, Ulrich wants to get
a piece of the Detroit Three's
business as they overhaul their
Canadian plants for EV production.
Koscielski:
Battery
weight
reduction
remains a
challenge for
suppliers to
solve.
FILE PHOTO
In late October, he said, KB
Components initiated discussions
with Stellantis, which
plans to launch battery electric
vehicles at its Windsor Assembly
Plant, expected to be retooled
next year.
According to Ulrich, two
EVs will be launched in 2024,
although Stellantis would not
confirm his assertion.
" We're trying to open the door there
and introduce ourselves, and the first call
went very well, " Ulrich said. " We're in the
early stages of courting. " - ANC
CORRECTION
A story in the October issue identified
Craig Couch as product manager of fullsize
pickups and commercial/fleet operations
at General Motors Canada. In fact,
Couch is product manager of full-size
trucks and commercial/fleet operations.
When we see this
kind of [EV] trend
happening, this
ball is rolling, it
is not going away.
You still work with
[core] customers.
... Look at these
new areas, but
don't give away
the farm.
JOE MCCABE
AutoForecast Solutions
PHOTO: ISTOCK.COM
http://www.ISTOCK.COM
Automotive News Canada - November 2022

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