Parts plants prepare for rEVolution in Canada's switchover from gas-powered vehicles

Manufacturers that make parts for vehicles usinggasoline,diesel,gas-turbine and other internal combustion engines (ICE) are preparing to change over to electric vehicle (EV) parts productionin the lead-upto the federal government's2035 targetof seeing every new light-duty vehicle sold in Canada be zero emissions.

"We're working with our customers the Tier 1. They also are changing over their factories to support electrification, and we're looking for some new customers," said David Ulrich, general manager of KB Components Canada.

The Tier 2 Windsor, Ont., manufacturing firm makes plastic parts contributing to the production of fuel tanks.

(A Tier 1supplier sends parts directly to the original equipment manufacturer, ie., the automaker, while aTier 2 manufacturer makes parts for Tier 1 parts makers.)

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KB Components is switching over to producing other types of plastic injection parts such as interior floor handle brackets, headrests and parts for the hood.

Ulrich said they already have the plastic injection equipment and switching over will create more jobs.

"I could see our employment going up 15 to 20 per cent," said Ulrich, who saidthe companyemploys 45 people.
"It's good for Windsor."

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Stellantis recently unveiled plans for some brands of electric vehicles to be produced in 2024, including an electric version of the Dodge Charger.

Automotive journalist Kay Layne expects an electric vehicle will be produced at the company's Windsor assembly plant. She also expects any parts manufacturers currently exclusively producing parts for ICE vehicles will have to "pivot or die."

"There's still going to be gas engines for the next little while, but I do see it slowly pivoting over, and whether it's battery, whether it's hydrogen, that technology is still to be seen as well," said Layne, who can also picturethe 2035 deadline being pushed back.

WATCH| KB Components Canada's GM explain how auto-parts plants are preparing for electric vehicles:

Auto parts plants preparing for REVolution

3 years ago

Duration 0:58

KB Components Canada general manager David Ulrich says they are preparing to pivot to producing parts for electric vehicles.. The company currently produces plastic injection parts for auto gas tanks.

Flavio Volpe, president of the Automotive Parts Manufacturers' Association,agrees there will be after-market demand for ICE parts, but said most of his members are preparing to pivot and many have already diversified anyway.

"There's time. It's not going to happen tomorrow, but you'd better be ready for you to be disrupted in your next program, which may be in two years, or five yearsor seven years."

Volpe saidPorche is also working on a synthetic fuel for ICE cars that will be 95 per cent carbon free on combustion. But he saidgovernments also have to collaborate to prepare for an increase in demand on the electric grid.

"If we all had electric vehicles today and we plugged them in, we would blow transformers. We'd overload the grid," he said. "There's gas stations all over the place. Is that where we would put chargers.How are we going to help the mining sector and the auto sector come together in processing for battery cells? All that has to happen."