The five key factors driving ElringKlinger ’ s route to an EV future
ENGINEERING
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The five key factors driving ElringKlinger ’ s route to an EV future
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car parts firm with its GB base on Teesside has outlined five key factors that will help drive its future .
ElringKlinger ( Great Britain ) ( EKGB ) is part of the German-headquartered ElringKlinger AG .
Employing just short of 200 people in its Redcar plant , it supplies powertrain components to the automotive industry , with its main customers being Ford , JLR , BMW and Perkins .
With forecast sales of around £ 22m this year , EKGB continues to be a key supplier to the automotive industry , supplying metal pressings , primarily for engine bay requirements .
It ’ s in this respect that EKGB is facing a new challenge , with the move away from internal combustion engines ( ICE ) to electric vehicles ( EV ) moving at a fast pace .
The government ’ s new target is that all new passenger vehicles sold in the UK will have to be emissions-free by 2035 – five years later than the original target . But how will that affect ElringKlinger ? Stephen Braithwaite , general manager at EKGB , stated : “ In my opinion , the fact the UK government has recently pushed back the deadline for the sale of ICE passenger vehicles from 2030 to 2035 will make little difference to the actual transformation .
“ Car manufacturers have been tooling up and planning for the 2030 deadline for a long time and it is unlikely that they will change their target , especially when you consider that the opposition party has pledged to revert to 2030 if they win the
Key supplier – The EKGB plant at Kirkleatham , Redcar .
Confident – ElringKlinger general manager Stephen Braithwaite .
next election .”
To ensure EKGB has an EV future , it is fully aligned with the plans of its German owner to implement ElringKlinger ’ s 2030 strategy .
As Stephen outlines : “ EK has identified five key factors that are allowing the business to make a successful transition from ICE to EV . These success factors have been identified by the EK Board as being critical in achieving our aim .”
The primary factor focuses on product transformation . The organisation has targeted key drive train products that it is able to manufacture and supply . These include electric drive units , fuel cells and battery systems , as well as ancillary equipment linked to these products . The other four success factors are directly linked to this .
The second factor is to define the cultural and organisational direction needed to facilitate this change in product portfolio . Stephen explains : “ As we are moving from a product for which we are a market leader to a product that is new to us , we must consider how to adjust our cultural and organisational focus to become more innovative and
collaborative with our customers , suppliers and workforce , as well as marketing ourselves in a different way .”
The third factor relates to performance and process excellence . Stephen continues : “ It is essential that the new equipment and processes we bring in to manufacture these new products are robust and reliable to ensure customer satisfaction . This is additionally important because the processes are more complex than the ones we are used to working with . With heavy investment required , we only get one chance to get this right .”
This complexity leads to EKGB ’ s fourth success factor , digital transformation of processes using platforms and architecture that can empower its people at all levels of the organisation so they can make the correct decision and continuously maintain a leading market standard .
Finally , the fifth success factor relates to sustainability . Stephen says : “ The transformation to EV requires substantial cash injections and to realise this , we need to be able to demonstrate to potential investors that we have a clearly defined organisational structure for sustainability , and that we can show reliable and auditable ESG data . This will not only attract investors , but it will also offer potential savings in our business .”
Stephen added : “ With the focus on these five key success factors , we can be confident that we have the right glide path to successfully transition toward our ambitious 2030 target .”
110 | Tees Business