TRANSPORTATION AND LOGISTICS BRIEFING: Auto suppliers bearish on electric cars — Robot “swarms” in warehouses — Target looks to speed up deliveries

MAJOR AUTO SUPPLIERS BEARISH ON INDUSTRY SHIFT TO ELECTRIC CARS: In the past month, executives from several of the largest auto parts suppliers in North America have warned that the auto industry’s shift towards electric vehicles will be slower than many expect, IndustryWeek reports. Tesla’s market value has skyrocketed past traditional carmakers, some of whom are now racing to respond with new electric vehicle models of their own. This has stoked speculation that production of electric vehicles will rapidly accelerate in the coming years, putting many more electric cars on the road.

Auto parts suppliers including American Axle & Manufacturing, Magna International, Delphi, and BorgWarner Inc. warn that this shift toward electric vehicles will take decades, not years. The reason is that they aren’t seeing demand to justify the current hype on electric cars. Rather than a spike in electric vehicle production, suppliers see automakers gradually shifting production towards a wider range of engine systems, with hybrid playing a bigger role. Delphi CEO Kevin Clark predicted last week that only 5% of new cars will be purely electric in 2025, with about 30% featuring hybrid gas-electric systems. 

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