Retirement Planning for the Internal Combustion Engine

Retirement Planning for the Internal Combustion Engine

As the global automotive industry starts to return to a post COVID  “new normal”, the impact of the associated global downturn will be seen as a shock outside of normal economic cycles.

Auto OEMs and suppliers have been starved of cash over the past year, and are facing unprecedented technological demands to meet emissions legislation, and the requirements of governments’  “Green Recovery Deals”; many of which seek to outright ban the Internal Combustion Engine (ICE) within the next 10-15 years.

Faced by these challenges, the global industry needs to create executable strategies to extract the most economic value while ICE products are still viable, while minimising investment and preparing to exit as regulation outlaws the product in core markets.

This paper looks at the issues that OEMs and suppliers are facing, potential strategies to minimise cost while maximising revenues, and how the industry can plan for the retirement of the ICE.