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Interview


'Car makers see themselves as at the centre of a triangle, with original component manufacturers at one point, the Tier One automotive customers at a second, and distributors such as Avnet, which help the other two match supply and demand, at the third.'


European sales are also affected by the growing strength of Asian vendors in the global market. And uncertainty over Brexit is pushing the whole supply chain to plan for operating in a new legal regime, whose form will not be settled until the UK exits the European Union, and possibly not even then, when it comes to the most detailed provisions for future trade.


The global scandal over diesel emissions has also prompted new regulations about emissions from internal combustion engines, which has caused a wave of re-engineering and re-qualification for processes and vehicles.


Technological trends


One of the most obvious trends in the car industry is the rapid increase in the value and sophistication of the electronics used in vehicles.


These trends are only likely to accelerate when major technological shifts, such as the rise of vehicle autonomy, increased connectivity, and a move to hybrid and eventually entirely electric drivetrains, take hold.


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“What began as a car radio ten years ago soon added satellite navigation and later became a full-blown infotainment system. Now it is more like a digital cockpit,” says Smit. “It’s completely changed, and those changes have come at a price. The car makers used to focus on their engines, but now the key selling points for a vehicle are choice and quality of interfaces to smart phones and tablets.”


This is driving up the average value of the electronics content of a car, from around 35% now to over 50% by 2030. “With annual car sales hitting around 100 million units, that’s a lot of components and subsystems to be made and supplied.”


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