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Sure. You’re ignoring that the global market for cars is rapidly growing. What they may lose in cam shaft sales, they may gain in EV part sales anyway. Battery

Sure. You’re ignoring that the global market for cars is rapidly growing. What they may lose in cam shaft sales, they may gain in EV part sales anyway. Battery sales. Time will tell. This would be a good place to mention that even Tesla has long partnered with Panasonic to help with their supply of batteries.

tuatoru 5y ago
Sure, Panasonic will be fine (or at least able to compete). Denso (34% of revenue in traditional thermal control, i.e. radiators, water pumps, etc., also famous for spark plugs) will take a hit. The thousands of much smaller companies that specialise in precisely fabricating minor parts (say, exhaust pipe mounts or engine mounts), less so. The expertise is not so transferable. There will be change, and everybody hates that.
AnthonyMouse 5y ago
> You’re ignoring that the global market for cars is rapidly growing. "For a given volume of cars" still holds. If the world is buying more cars, the manufacturer of piston rings is losing the opportunity to expand their business instead of shutting it down, and is inclined to resist. > What they may lose in cam shaft sales, they may gain in EV part sales anyway. The whole point is that EVs have significantly fewer parts, and especially fewer moving parts that wear out. > Battery sales. The local supplier of bespoke transmission linkages for specific models of Toyota then has to enter into a global commodity market in competition with multi-billion dollar international companies like LG and Tesla and other commodity suppliers in China, South Korea, Germany or Texas. > This would be a good place to mention that even Tesla has long partnered with Panasonic to help with their supply of batteries. They did this when they were a tiny upstart with no internal production capacity. They're now constructing their own battery factories on three continents. Anyone converting their whole lineup to electric is likely to do the same because it's the single most expensive part of the car.

tuatoru 5y ago

Sure, Panasonic will be fine (or at least able to compete). Denso (34% of revenue in traditional thermal control, i.e. radiators, water pumps, etc., also famous for spark plugs) will take a hit. The thousands of much smaller companies that specialise in precisely fabricating minor parts (say, exhaust pipe mounts or engine mounts), less so. The expertise is not so transferable. There will be change, and everybody hates that.

AnthonyMouse 5y ago

> You’re ignoring that the global market for cars is rapidly growing. "For a given volume of cars" still holds. If the world is buying more cars, the manufacturer of piston rings is losing the opportunity to expand their business instead of shutting it down, and is inclined to resist. > What they may lose in cam shaft sales, they may gain in EV part sales anyway. The whole point is that EVs have significantly fewer parts, and especially fewer moving parts that wear out. > Battery sales. The local supplier of bespoke transmission linkages for specific models of Toyota then has to enter into a global commodity market in competition with multi-billion dollar international companies like LG and Tesla and other commodity suppliers in China, South Korea, Germany or Texas. > This would be a good place to mention that even Tesla has long partnered with Panasonic to help with their supply of batteries. They did this when they were a tiny upstart with no internal production capacity. They're now constructing their own battery factories on three continents. Anyone converting their whole lineup to electric is likely to do the same because it's the single most expensive part of the car.