1 EEVC. Brussels, Belgium, November 19-22, 2012. The Development of the E-Mobility Supply Chain in europe - results of the european Project ENEVATE. Christian-Simon Ernst1,2,*, Fatih zel3, Huw Davies3, Ingo Olschewski1,4, Michael Pieper1,5. 1. , K lner Str. 80-82, 45481 M hlheim/Ruhr, Germany 2. Institut f r Kraftfahrzeuge RWTH Aachen University, Steinbachstr. 7, 52074 Aachen, Germany 3. Institute of Mechanical and Manufacturing Engineering Cardiff University, Newport Road, Cardiff CF24 3AA, UK. 4. Forschungsgesellschaft Kraftfahrwesen mbH Aachen, Steinbachstr. 7, 52074 Aachen, Germany 5. Agiplan mbH, K lner Str. 80-82, 45481 M hlheim/Ruhr, Germany *presenting author: Abstract In reaction to the megatrends emission, urbanization, and peak oil, the automotive industry is ex- ploring Electric mobility . The introduction of E-Mobility is accompanied by significant changes in the Supply Chain for vehicles.
2 The european Network on Electric Vehicles and Transferring Expertise (ENEVATE) aims to facilitate and support the accelerated introduction of electric mo- bility in North West europe (NWE) through structured transnational cooperation between public authorities and business representatives. Therefore, the ENEVATE partners investigate the impli- cations of E-Mobility on the Supply chains, the infrastructure, the markets and future mobility . This study focuses on the implications for the upstream Supply Chain and aims at the derivation of recommendations for the stakeholders politics, automotive manufacturers and suppliers, espe- cially small and medium sized enterprises. Therefore, a production structure analysis, make or buy analysis, value-add analysis, white spot analysis and an international benchmark of compe- tencies has been performed. It was found that the NWE region has a good potential for the devel- opment of a successful BEV industry.
3 Crucial for the success will be a linkage and knowledge transfer between the stakeholders from the electronics industry and the automotive industry. Keywords: Supply Chain , industry, policy (GHG) below 1990 emissions. In setting the emis- 1 Introduction sion reduction goal it was recognised that the transport sector, and more importantly the automo- In March 2007, the european Council set clear tive sector, had a significant role to play. In 2005, goals: Reduction of 20 % of the total energy 19 % of total EU GHG emissions and 28 % of CO2. consumption; 20 % contribution of renewable emissions were linked to transport. Moreover, energies to total energy production; and signifi- more than 90 % of all EU transport emissions were cantly a 20 % reduction of greenhouse gases due to road transport . EEVC european Electric Vehicle Congress 1. The pressure is on the automotive sector to adopt have to be developed and production lines have to alternative propulsion technologies that have be built.
4 The move to mass E-Mobility in the near lower or even zero direct CO2 emissions. In prin- term future will introduce significant changes in ciple, electric propulsion is a technological alter- both the up and down stream value creation proc- native which could be ready to use in an accept- esses. able period of time. However, a move to electric The major problem faced by the established auto- propulsion or E-Mobility poses more than a tech- motive sector deals with the high adaptation costs. nological challenge for the automotive sector. The automotive industry is an extremely capital The current business structure within the automo- intensive sector and the main issues in investing in tive sector is built on cost efficiency and long new technology are: capital intensity; cost re- depreciation cycles. This limits the speed of in- quirements; and amortisation of sunk costs .
5 Novation and creates entrance barriers for new- The majority of auto manufacturers have limited comers to the automotive sector and the adoption expertise and intellectual property in the main of breakthrough innovations. technology components of electric vehicle tech- To facilitate and accelerate the introduction of e- nologies, especially in electrochemistry and power mobility in the North West europe region the electronics . The expertise and economies of INTERREG IVB North-West europe (NWE) scale do not exist within the current automotive Programme has funded the ENEVATE partner- sector and the costs for employing them is consid- ship . The partnership aims to boost innova- erable . A further issue is the lack of standards tion and competitiveness of the developing elec- for quality and performance in this new Supply tric vehicle sector through structured transna- Chain and this only serves to increase the risk and tional cooperation between public authorities and further distance the automotive sector from these business representatives.
6 As part of its remit, the new technologies. ENEVATE Partnership has undertaken a series Governments have looked to incentivise e- of analyses to explore the challenges facing the mobility , but the projected business returns do not NWE automotive sector in the transition to e- create enough motivation within the automotive mobility and to develop a set of strategies to sector. The result, OEMs give priority to other support the Development of a commercially types of investments in the current market which strong electric vehicle sector. have more visible and faster return on investment . The end result is that in 2011, there were 2 Background fewer than 30 different electric vehicle models produced by OEMs. There is also a low proportion Globally, the vehicle fleet numbers 850 million of private ownership. For example, most of the , consumes 180 billion gallon of fuel annually vehicles registered in Germany are owned by  and accounts for near 61 % of oil use .
7 Companies, mostly for testing purposes, and not by Unchecked, it is reported that known oil reserves the private public sector . This is far removed will be depleted in as few as 45 years . Com- from national Government aims and societal objec- bined with the pressure to reduce greenhouse gas tives . emissions, the pressure is on the automotive industry to develop sustainable transport solu- tions. Most authors now converge on the idea 3 Methodology that electric propulsion or E-Mobility represents To support the transition to E-Mobility , competen- the most viable short-term solution [5; 6; 7; 8; 9; cies need to be found and connected to develop a 10; 11]. strong Supply Chain . As part of the ENEVATE. Whilst viewed as a solution, the move to e- project a database was developed in order to cap- mobility also comes with its own set of chal- ture the competencies within the existing internal lenges.
8 The drive to decarbonise the transport combustion engine (ICE) and nascent E-Mobility sector will require the mass application of elec- sectors across North-West europe . The approach tric vehicles. Forecasts are predicting that battery used to develop this database is outlined in Figure electric vehicles or BEVs will hold a market 1. The final database provides both a list of rele- share of 2-5 % in 2020  and that the stock of vant companies like system and component suppli- BEVs will grow to about to million . ers, universities and R&D centres. To realise this, new BEVs and their components EEVC european Electric Vehicle Congress 2. Figure1: EV Supply Chain Database The analyses of this database were used to guide the Development of a number of strategies that aim to facilitate the Development of a commer- cially strong BEV sector in the North-West europe region.
9 These analyses are described in the following sub-sections. Furthermore, the database is an online tool, integrated in the homepage, which helps compa- nies to identify possible strategic Development and production partners for BEV. 4 Production Structure Analysis The foundation of the automotive sector in North-West europe is the Supply Chain . A Supply Chain can be thought of as a single virtual organi- sation involving several business units such as manufacturers, suppliers, distributors and retail- ers, and operations . Its purpose is to obtain raw materials, transfer those raw materials into consumable products, and distribute those con- Figure 2: Production structure of the ICE of today sumable products to retailers and customers . [Dodel 2004]. The dashed lines represent joint The productivity of a Supply Chain is critical as logistics / Supply Chain .
10 The solid lines represent companies compete via their Supply chains rather joint product Development than competing alone [19; 20; 21]. Today, the Supply chains in the automotive in- If BEVs are to be competitive in the market place, dustry are closely linked. System integrators the success will depend on the efficiency of the integrate the modules and components produced Supply Chain . by either technology specialists or process spe- The present BEV fleet is a mix of 1st and 2nd cialists (Figure 2). The growth of system integra- generation designs. The 1st generation battery tors has resulted in a decrease in the total number electric vehicles are largely based primary on clas- of directly linked suppliers for the vehicle manu- sic ICE vehicles (conversion design). Examples facturer. include E-WOLF  and German E-Cars . Analysis of the ENEVATE database accompanied by site visits to a number of BEV manufacturing facilities across NWE showed that the production process for BEV is characterized by small job lots driven by irregular demand and a one:many.