5 for 50: 5 ways the auto industry is changing

There are moments that change everything, that divide time. They mark the end of an era and the start of something new.

For the auto industry, COVID-19 is one of those moments. The pandemic shook the industry to its core, forcing changes to businesses, supply chains and technologies that will help to define the industry for the decades ahead.

While some of the changes already were on the horizon, the global pandemic either spurred them on or likely will serve as the point at which the transitions truly began.

Here are 5 ways the automotive industry is changing post-pandemic.

1. It's electric
For years, electric vehicles were niche. They were perceived as small, impractical cars driven by celebrities and environmentalists. Sure, EV sales would rise when oil prices soared and took gas prices with them. But something happened during the pandemic that proved EVs were a force to reckon with.

EVs broke their ties with gas prices.

In 2020, a tumultuous sales year overall, growth of electrified models outpaced those in every other vehicle segment. That happened even as gas prices plummeted.

There are a number of factors for this, such as Tesla's success in changing the perception of EVs, the electrification of models with broad consumer appeal and the increased range of batteries.

Regardless of reasoning, the industry is transitioning quickly. More than 200 electric models are set to be introduced in the coming years, and auto makers are pledging to electrify their entire lineups soon.

When the industry looks back years from now, 2020—the pandemic year—likely will be seen as a turning point for propulsion.

2. The strong but silent type
Electric vehicles are hard on tires.

For starters, they're heavy, requiring the tires to carry heftier loads. And those batteries weighing them down really pack a punch, ratcheting up the torque that has the potential to change the tire's grip and wear them down quickly.

So tire makers are redefining what it takes to make an ideal tire, looking to build in the properties that best suit the demands of EVs and extend the vehicle's range while maintaining safety.

As it turns out, that's only half the battle. Without an engine, EVs are quiet. With tires as the touch point to the roadway, the noise they generate is obvious. So learning to quiet tires will be a challenge facing the industry in the years ahead.

3. Suppliers shift gears

Take the internal combustion engine out of a vehicle and you do more than quiet things down. You take out a lot of parts.

Forbes notes that an ICE vehicle's drivetrain has more than 2,000 moving parts, while electric vehicles rely on around 20.

That means some suppliers will see significant drops in demand for their products, according to Gates Corp.'s Tom Pitstick. Items like engine powertrain components, mounts and seals, and hoses for engine, turbocharger and emissions, are among those that will go unneeded.

Suppliers making seals for doors and windows, anti-vibration products, or hoses for air conditioning and power steering may see no real changes to business. But those whose products go into the thermal management materials realm likely will see a surge in demand.

These sweeping changes that EVs bring, Pitstick said, will force companies to shift gears, either by pushing their technologies further or adapting portfolios to better meet the needs of a new generation of vehicles.

4. Smarter supply chains
The COVID-19 pandemic did a number on the shipping industry. Increased demand for medical supplies and consumer products threw off the delicate balance that defined just-in-time supply chains and left many shipping containers stranded in countries that export far less than they import.

Ports, which were short on workers because of illness and other pandemic-related factors, easily were overwhelmed, which added to delivery delays. In turn, the trucking industry struggled to meet demand, and it all was compounded with lost air freight from grounded commercial flights.

It will take a while to sort through the issues. And as manufacturers and suppliers fight to get their products shipped, they are evaluating just how well their supply chains work.

Whether it comes from on-shoring manufacturing, maintaining domestic supplies of certain products or materials, or moving away from just-in-time supply chains, it is likely that supply chains will see some changes.

5. Greener, cleaner and more sustainable
Climate change has brought the world to the brink, and the rubber industry is poised to do its part. Investors and consumers are demanding more sustainability, and the industry itself is setting the bar higher.

From the largest tire makers to their NR smallholders, the entire industry is looking for ways to ensure more sustainable operations.

Newly constructed facilities are built with conservation in mind, capturing rainwater and using the most energy efficient technology throughout. Existing facilities are being retrofitted to reduce their reliance on non-renewable resources. Some harness solar power, others the strength of the wind.

They're also seeking greener shipping and logistics options, with some companies, like Michelin, using its own innovative technologies to help make transportation cleaner. The tire maker recently unveiled Wisamo, a retractable sail for shipping vessels.

Rubber product manufacturers also are building more sustainable products and focusing on circularity. They're recycling and reusing materials, while also finding alternative, domestic rubber sources and embracing the use of materials from renewable resources such as soybeans or citrus.