Adapting to Change: How to Chart a Clear Path Toward Mobility Compliance

Mobility looks a lot different these days than it did five years ago. And no brand, supplier, government, or consulting firm is forecasting that pace of change to slow down in the next five. The focus for all of us continues to be accelerating the transition to electric, hybrid and autonomous vehicles, improving infrastructure, reducing emissions throughout the full vehicle lifecycle, and last but certainly not least, safety.

Globally, the latest propositions by governments and regulatory bodies in response to this changing landscape illustrate this:

• The U.S. is aiming for at least 50% of vehicle sales to be electric by 2030.
• In Europe, the CAFE (corporate average fuel economy) rules target 55% CO₂ emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels.
• Thailand’s 30@30 EV Production Policy aims for 30% of domestic vehicle production by 2030.

In short, Original Equipment Manufacturers (OEMs) and their partners find themselves amidst a frenetic race against time as they work to meet environmental regulations for the automotive industry as well as government regulations on carbon emissions.

Entities like the International Automotive Task Force (IATF), comprising automotive manufacturers and their respective National Automotive Industry Associations, play a role of heightened significance in this shifting landscape as they push to elevate product quality standards.

Consider automotive electronics – a market that only gained recognition within mobility in the latter part of the 20th century. Projections indicate that by 2030, the global automotive software and electronics market will surge to $462 billion, indicative of a robust 5.5% Compound Annual Growth Rate (CAGR) from 2019 to 2030 (McKinsey). This burgeoning market attracts a plethora of new players (many of whom boast valuations surpassing those of established OEMs!).

However, their familiarity with traditional automotive quality standards may be lacking, leading to potential disparities in product quality and safety standards across the industry. There’s also trepidation at the government level related to data privacy as “Big Tech” deepens its roots within automotive. Given these concerns, OEM compliance becomes not just a “nice to have” but a crucial element of operations.

The IATF establishes guidelines and rules for quality management system certification with its Tier 1 and sub-suppliers and respective production processes. This ensures that – amid industry changes – there is a streamlined level of vehicle quality, safety, and reliability upheld across the supply chain. IATF 16949 Certification, for example, provides for continuous improvement with an emphasis on defect prevention and the reduction of variation and waste in the supply chain.

These certifications also serve as a North Star for global OEMs. What do I mean by that? Having worked in mobility for nearly four decades, I can attest that beyond the convergence of traditional manufacturing and technology, one of the greatest hallmarks of this new automotive age is the breaking down of traditional siloes to allow for an ecosystem of new business models grounded in collaboration. By adhering to the standards set forth by international and regional regulatory bodies, companies can establish themselves as good candidates for that deeper work of real-time partnership.

Our Commitment to Meeting and Advancing OEM Regulations

At Dow, we not only pursue the latest certifications across our facilities but also actively collaborate with our suppliers to enhance their quality standards and engage with OEMs to shape regulatory frameworks. We also are actively working to raise awareness around the application of standards with bulk materials such as chemicals/fluids, etc.

For instance, our collaboration with a key OEM contributed to input into the development of International Standard IATF 16949, a certification now held by Dow, which provides bulk materials to OEMs and other Tier suppliers. This standard is extremely rigorous – and is not stand-alone. It must be comprehended as a supplement to use in conjunction with ISO 9001:2015 and ISO 9000:2015 along with customer-specific requirements. Having solid partners across your ecosystem and continuous interaction across business functions, from sales to materials sourcing to design, provides a huge leg-up when working to manage risk and meet needs set forth by these standards.

No matter where you sit in the supply chain, we must all remain steadfast in keeping pace with emerging standards. It’s a tall order, to be sure, but the potential for accelerating innovation is great indeed.

If you have any questions related to Dow’s work in compliance, any of the certifications we hold across our facilities, or how we collaborate with our suppliers to streamline quality for our OEM partners, please reach out to us by visiting https://www.dow.com/en-us/support.html.