Combustion engine suppliers buckle up! The auto industry value chain continues to morph. Here’s an example where Norway’s policy and infrastructure change results in a further shift of the automotive supplier’s supply chains. For providers servicing the industry, it presents both a liquidity and operational challenge and they may be forced to carry parallel inventories of potentially obsolete supply for an extended period of time.
Factors, such as EU emissions regulation, will further accelerate this risk and opportunity. In Norway, for example, Tesla has become the budget option.
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