Advertisement 3But the funding comes with strings attached. For example, 70 per cent of NFI’s bus components must be made in the U.S. in order to qualify for the subsidy, said King. These origin requirements, combined with persistent supply chain issues, are preventing EV manufacturers from getting the most out of government programs.
At one point, King said NFI had trouble finding everything from fibreglass, to metal, to even bus seats. Supply chains have “been absolutely brutal on our business in the last 18 months,” he said. There is evidence that supply bottlenecks are starting to ease. Companies stockpiled goods worth $46.8 billion in the third quarter, a record, Statistics CanadaManufacturers are rethinking their supply chains after two years of complications triggered by the pandemic. Some have tired of relying on third-party suppliers, Nicolas Brunet, chief financial officer of
, another bus maker, said at the conference. “You end up paying a significant amount of margins to a third party to whom you’re really captive, as a client.”Article contentTo solve the problem, EV manufacturers are increasingly building parts in-house. Lion has started its own battery pack and module production, which “significantly de-risks the procurement aspect,” Brunet said.by Andrew Carnegie of the mammoth Carnegie Steel Company, now United States Steel Corp.
Carnegie owned every step of the manufacturing process: the iron mines that provided the key ingredient in steel, the coal mines that provided the fuel to create the steel, the railroads for transporting materials, and the steel factories themselves. That approach went out of fashion when globalization allowed factory owners to outsource production to lower-cost countries.
What will happen when the funding will stop?!
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