Editor's letter
Issue 23 • June 2025
Cover image:
The huge energy transition ahead and its transformative impact on the automotive industry is perhaps best summed up by the adage, ‘a slow train is coming’. It has been coming for a while, of course, and the train is getting inexorably closer, but the global auto industry is still dominated by internal combustion engines (ICEs). While sales of EVs are sharply up, the rise is from a low base. Moreover, the transition is not shaping up to be completely smooth. There is a lot for the auto industry’s OEMs and suppliers to contend with.
Final demand and the consumer appetite for buying EVs is one challenge. Incentives can help while costs are high relative to incumbent ICE tech. Fundamentally though, at this stage of technological change, calibrating manufacturing strategies on long lead times is not easy. Fiat’s Mirafiori plant and changing plans for the 500 range graphically illustrate this. Sales for the electric variant were coming in well under projections and Stellantis decided a hybrid variant (cover image Fiat 500 Hybrid) was therefore necessary, for demand and supply reasons. Stellantis in not alone in recognising the strength of hybrids in current market conditions. Indeed, they are an essential bridge to an electrified future. Is that a train toot I can hear getting louder?
David Leggett, editor