EVs, Value Chains, and the Transformation of Automotive Manufacturing

In a recent edition of Transformation Talks, Hans Gäng sat down with Tom Mitchell, President and COO of Insequence, to explore the shifting landscape of automotive manufacturing. Their conversation covered everything from electric vehicles (EVs) to global supply chain strategies. It offered a grounded look into how manufacturers are responding to change—and where the road leads next.

Insequence’s Global Perspective

Insequence has nearly 30 years of experience in automotive manufacturing technology. Headquartered in Nashville, Tennessee, Insequence supports tier one automotive suppliers and logistics companies across North America, South America, and Europe.

“We’ve implemented hundreds of systems,” Tom said. “From sequencing to manufacturing execution, our technology has touched over a billion components globally.”

That global reach gives Insequence a unique view into industry trends. It also helps the company stay flexible in response to shifting demands.

What’s Changing in U.S. Automotive?

Hans asked a timely question: Can U.S. carmakers become competitive again in a rapidly evolving market?

Tom noted that efforts are underway to strengthen domestic manufacturing. This push includes both new investments and policy changes. Notably, it’s not just the traditional “Big Three” automakers that are involved.

“Brands like Toyota, Hyundai, BMW, and others all manufacture in the U.S. now,” Tom explained. “It’s a much broader industry than people often realize.”

The focus is on rebuilding strong, local supply chains. These supply networks support everything from vehicle assembly to steel production.

The EV Shift—And Its Speed Bumps

The conversation quickly turned to electric vehicles. Tom shared that the EV market in the U.S. has hit a plateau.

“There’s a lot of unsold inventory,” he noted. “And charging infrastructure is still behind, especially in residential and rural areas.”

Consumers also face range anxiety. While many vehicles offer strong range, public perception hasn’t caught up. Moreover, government incentives are shrinking. This reduces financial motivation for buyers.

Because of these issues, manufacturers are slowing down EV expansion plans. Instead, they are renewing focus on internal combustion engine (ICE) models and hybrids. Hybrids offer better fuel efficiency without asking drivers to drastically change behavior.

The Challenge of Dual Tracks: Ev’s and ICE

Operating both EV and ICE platforms isn’t simple. It puts major pressure on supply chains, especially suppliers.

“Some plants are reducing shifts,” Tom said. “Instead of three shifts, they may run two. But they’re not downsizing equipment. They’re flexing labor.”

This dual-track approach creates higher costs and complexity. However, automakers are using automation and strategic planning to manage both systems.

From Supply Chains to Value Chains

Later in the conversation, Hans brought up a statement from Tom’s blog: Forget the supply chain—create a value chain.

Tom explained that this mindset reflects a new way of thinking. During COVID-19, supply chains revealed major vulnerabilities. A single disruption could affect every layer of production.

“A value chain approach improves collaboration,” Tom said. “It connects OEMs, suppliers, and logistics partners more deeply.”

This shift also emphasizes planning, sustainability, and visibility. By working together, companies can build stronger, more flexible systems.

Read more on value chains: What is a value chain and why automotive suppliers need one.

What’s Next?

The automotive industry is in a state of change. Technology is evolving, policies are shifting, and consumer demand is uncertain.

Still, Tom remains optimistic.

“The key is collaboration,” he said. “If we focus on agility and long-term thinking, we can build an industry that’s ready for anything.”

At Insequence, those values are already at the core of what we do.

Curious how Insequence supports EV and ICE production globally? Contact us or explore our solutions to learn more.