Electric cars offer a chance to develop lucrative new technologies, and suppliers would benefit from grabbing more of this work -- but they will have to fight carmakers keen to hold on to control of future profits.
Over the years, suppliers have gradually taken on more of car development, now covering around 75 percent of the cost, but carmakers chasing elusive profits may want to reverse this trend to keep control of new electric vehicle (EV) technologies.
"In an electric vehicle, the engine, in which a carmaker has a greater share, is taken away, the gear box is taken away, and an electric motor and, most importantly, a battery are added," said Henri Trintignac, head of EVs at French car parts maker Valeo.
"If we imagine suppliers making 100 percent of the electric motor, electronics and battery, the carmaker's share (of the cost of a car) would fall from 25 percent to around 10 percent, said Trintignac, adding: "I don't see them accepting that situation."
BATTERY POWER
Carlos Ghosn, chief executive of Renault and its Japanese partner Nissan which are jointly investing in electric vehicles (EVs) to the tune of around 4 billion euros, has said he sees an EV's battery as "the heart of the business."
Estimates vary, but the battery accounts for between a third and half of the final price of an EV.
Nissan's Leaf is due to go on sale in Europe early next year, while Renault's electric Kangoo and Fluence will arrive a few months later.
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