Abstract
Motivated by the industrial observation that electric vehicle (EV) manufacturers are often fully or partially outsourcing some specific components, for instance, powertrains and battery systems, and rely on their suppliers’ energy-saving innovation to improve their own EVs’ comprehensive performances, this study builds an analytical framework to investigate how different cooperation modes affect the EV supply chain’s energy-saving performance and firms’ profitability. As a main barrier preventing potential consumers from purchasing EVs, the consumer range anxiety for EVs’ performance was incorporated into the analytical model. Three primary cases and one strategic alliance case are sequentially analyzed. The results show that the supplier always self-motivates to implement energy-saving innovation to improve the performance of the core component, and the EV manufacturer is always willing to participate in its supplier’s energy-saving innovation by sharing a fraction of the investment. Moreover, a strategic alliance between the manufacturer and the supplier can effectively improve the profit of the whole supply chain. This strategic alliance can be coordinated through a generalized Nash-bargaining mechanism.
Highlights
Problem MotivationWith the excessive emission of greenhouse gases, the electric vehicle (EV) industry has been highly respected
Readers can refer to the EV manufacturer as Tesla and refer to the core component supplier as Panasonic who supplies battery to Tesla, our analysis applies to other such EV manufacturers and their core component suppliers
Different from the above-mentioned research, this study focuses on the cooperation mechanism and energy-saving innovation issues in the EV supply chain, and we incorporate consumers’ range anxiety concerns in the model to line the critical performance of EV and consumer market more naturally
Summary
Problem MotivationWith the excessive emission of greenhouse gases, the electric vehicle (EV) industry has been highly respected. The development of EVs hinges on technology investment, especially for powertrains and battery systems, which determines the energy-saving performance of an EV to a large extent. When the key components are outsourced, the degree to control the powertrain and battery supply chain varies, especially for the degree of energysaving for improving their performances. Research from Deloitte found that, for the people who are reluctant to consider an EV in Belgium, France, Germany, the United Kingdom, Spain, Italy, and Turkey, when asked what concerns them about an EV, one issue stands out: range anxiety (Mitsubishi Heavy Industries, 2018). Seeing an opportunity to attract curious consumers with range anxiety concerns, some core component suppliers in the EV supply chain try to improve the ability of their components’ performance through energysaving innovation. The users can be more natural to rely on the EVs
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