EV revolution driven by ‘humble and hidden’ auto suppliers – Reuters.com
- Connector suppliers such as TE find sweet spot with EVs
- TE planning more capacity or to buy other firms to expand
- Going electric means more complex and expensive parts
WOERT, Germany, March 22 (Reuters) – The shift to electric cars may pose an existential threat to suppliers of combustion engines but for auto parts firms such as TE Connectivity (TEL.N) the challenge is keeping up with demand.
It makes the connectors that link miles of cables in cars to all things electrical, from sensors to fuel injection systems to infotainment – and if there’s anything the cars of an electric era will need, it’s larger and ever more complex connectors.
That’s why TE spent $125 million to open a new building in 2020 dedicated to electric vehicle (EV) parts at a factory tucked away in a shallow valley in the small town of Woert in southern Germany.
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And that’s why it’s on the lookout for acquisitions or partnerships to keep expanding its auto business, Chief Executive Terrence Curtin told Reuters: “We’re going to continue to add capacity.”
As legacy auto parts suppliers figure out if and when to sell combustion engine businesses or buy EV parts makers, TE and rivals in the connectors or sensors businesses such as Sensata Technologies (ST.N), Amphenol Corp (APH.N) and Molex are looking to supply higher-value components and do more development work with carmakers going through a massive transition.
“All these automakers talking about moving their fleets to electric and making promises about range are incapable of doing that …….