In the two decades since Linda Hasenfratz took the helm of Linamar Corporation from her father, Frank, the Guelph-based auto-parts manufacturer has grown into a global giant with a market cap of almost $5 billion. The company recently struck a strategic alliance with Ballard Power Systems to develop fuel-cell electric powertrains and components in a big bet on hydrogen fuel. We asked the one-time factory machine operator how she feels about the dramatic evolution the automotive industry is going through.
You largely manufacture auto parts but the pandemic brought you into a new niche: ventilators.
Jumping into production of ventilators when there was a global shortage was probably the most meaningful thing we did in the early days. We made ventilator parts and full ventilators for five different customers. We made nearly one million parts or full assemblies for ventilators last year and that business is continuing.
Will you stay in that business?
Interestingly, we had already identified medical devices as a market we wanted to expand into, given the aging global population. We were not looking at ventilators specifically, but the work last year helped us get more connected with the industry and refine our strategy.
Automotive sector remains your primary focus and the industry has weathered this downturn much better than the financial crisis. How has that affected Linamar?
Well, we were fully shut down for two months last year, which was painful. But when our customers started coming back online, they came back quickly, particularly in North America and Asia. Then, at the beginning of this year, the brakes got put on again as we started to feel supply chain issues. The notable one is semiconductor chips. The auto industry tends to work on just-in-time inventory; if manufacturers dont need the parts, they shut suppliers off. For the chip guys, automakers only represent six per cent or seven per cent of the global market, and with the surge in demand for consumer electronics and computers, they had plenty of other places to allocate those chips. When the automakers wanted that supply again, it wasnt there for them. Back in 2010, the exact same thing happened, so unfortunately we didnt learn from that.
What about other commodities that have also soared in price?
The steel prices would be where were feeling the most impact. On the automotive side, most of our contracts have metal market pass-through adjustments so every quarter we change our pricing based on the metal market index and that makes us reasonably well insulated. In our industrial businesses Skyjack and MacDon, were more exposed so we have to negotiate the best we can.
Youve partnered with Ballard to produce automotive fuel-cell components. Do you expect that technology to take over from battery electric cars?
Just to clarify the terminology, a fuel-cell vehicle is still an electric vehicle but instead of a battery pack, its powered by fuel cells. Were big believers that fuel-cell technology is the future of mobility, from passenger cars to commercial vehicles and heavy trucks, because its superior to battery-electric for four reasons. The first and possibly most important one is that its a clean technology end to end from fuel sourcing right through to the tailpipe because its not reliant on electricity grids, which are pretty dirty. A battery pack itself is heavy, 800 kilograms or more, which is not very efficient for vehicle performance and produces heavy emissions: making one battery pack for a large sedan releases 17 tons of CO2. A car with an internal combustion engine generates between six and eight tons of CO2 a year, so making that one battery pack produces as much pollution as more than two years of driving an internal-combustion car. Hydrogen is made from water using solar or wind power. In a way, youre temporarily storing the solar and wind power in the hydrogen, because when you run the fuel cell, the byproduct is water.
Number two, fuel-cell vehicles can be refilled in minutes, the same as what were used to. Thirdly, hydrogen is a highly efficient fuel with high energy density. Lastly, fuel-cell vehicles dont rely on regionally concentrated sources of so-called conflict minerals used in battery packs. More than half of the worlds cobalt comes from the Congo, and a third of it is mined artisanally, which sounds nice but it means by hand, which isnt very sustainable. Eighty per cent of the worlds cobalt is then refined in China, which concentrates the supply chain risk. You never want to have to buy 80 per cent of something from a single place.
Do auto-parts suppliers and automakers have to choose between committing to hydrogen fuel cells or batteries the way one might choose Windows versus Apples iOS as a computing platform?
Its not about making a big decision because the vehicle architecture is similar; you can pull out the battery pack, put in the fuel-cell system and use the same propulsion system. Thats part of our strategy with Ballard: we want to develop a plug-and-play technology so we can supply either vehicle type. We dont want to bet the farm on one technology because there is much uncertainty around which technology will be adopted.
Which parts of the automotive markets do you envision embracing fuel cells first?
It will be commercial vehicles: heavy trucks that have to worry about the payload. When youre paid by the pound of freight you deliver, the last thing you want is to fill up your truck with batteries. The passenger-car side, many automakers are working on fuel-cell vehicles but we wont see significant volumes for at least 10 years.
Thats OK because were in the middle of a transition from internal combustion to hybrid, and then to battery electric, and then ultimately to fuel cells, and that takes a long time. Even the shift to hybrid and battery is slower than people estimated. We always overestimate technology adoption in the short term and underestimate it in the long term, and the more complex the products youre transitioning, the longer the transition takes. Then you need to bring the consumer on board.
Consumers have certainly been buying lots of cars, with vehicle sales breaking records. Is that just driven by pandemic-related fear of using transit or car-sharing?
Loading...Loading...Loading...Loading...Loading...
Remember that dealerships were closed last year so we have pent-up demand. At the same time, the automotive industry works in cycles. Automotive production peaked in North America in 2017 and volumes in 2018 and 2019 were down. Then the pandemic hit. Now were back on a natural upward trajectory, and the low interest rates are impacting that, too.
Aside from fuel cells, what new technologies are you most excited to see?
Electrification, broadly, is the single biggest opportunity for suppliers in the history of automotive manufacturing. Vehicle autonomy is another area that has lots of implications. We may move away from individual ownership toward fleet ownership, and that would affect vehicle design. Consumers care about performance and how a car handles, but if the vehicle is owned by a fleet, different things matter, such as how often the vehicle breaks, its simplicity and how easy is it to repair. Owners may not care as much about horsepower.
Go here to see the original:
- Days of our Lives' Suzanne Rogers on the Evolution of Maggie: "She Knows Who She Is Now, and She's Not Relying ... - Michael Fairman TV - March 14th, 2024 [March 14th, 2024]
- Kylie Jenner Talks About Her Style Evolution - The Cut - March 14th, 2024 [March 14th, 2024]
- Equator Coffees Unveils New Packaging Design, Reflecting Brand Evolution & Vision For The Future - Sprudge - March 14th, 2024 [March 14th, 2024]
- Rosewood Hotel Group Accelerates Growth And Evolution Across Its Four Distinctive Brands - Hospitality Net - March 14th, 2024 [March 14th, 2024]
- Thomson Reuters Unveils New Brand Evolution - Adweek - March 14th, 2024 [March 14th, 2024]
- Is It Becoming Acceptable to Speak of Design? - Discovery Institute - March 14th, 2024 [March 14th, 2024]
- Did Charles Darwin Convert to Christianity and Discredit Evolution on His Deathbed? - Snopes.com - March 14th, 2024 [March 14th, 2024]
- Milk, it's not just for mammals: An amphibian makes it too - NPR - March 14th, 2024 [March 14th, 2024]
- Discover Puerto Rico Debuts Evolution of Its Successful 'Live Boricua' Brand Campaign Aimed at Engaging Visitors ... - Yahoo Finance - March 14th, 2024 [March 14th, 2024]
- A Journey Through Time: The Evolution of Ras Al Khaimah Art - Business Wire - March 14th, 2024 [March 14th, 2024]
- Empowering Women: The Evolution and Innovation of coto Social Platform - CXOToday.com - March 14th, 2024 [March 14th, 2024]
- The Evolution of Da'Vine Joy Randolph - The Root - March 14th, 2024 [March 14th, 2024]
- Study on mating behaviors offers clues into the evolution of attraction - Phys.org - March 14th, 2024 [March 14th, 2024]
- Dragonball Evolutions live-action Goku says goodbye to Toriyama: Sorry we messed up - AS USA - March 14th, 2024 [March 14th, 2024]
- Investec, evolution of SMEs in the materials handling sector - Leasing Life - March 14th, 2024 [March 14th, 2024]
- Pride & Prejudice and the evolution of the female gaze on screen - Yahoo News UK - March 6th, 2024 [March 6th, 2024]
- Joe Wong's Musical Evolution - Shepherd Express - March 6th, 2024 [March 6th, 2024]
- A global survey of prokaryotic genomes reveals the eco-evolutionary pressures driving horizontal gene transfer - Nature.com - March 6th, 2024 [March 6th, 2024]
- Redefining Intelligence: Chimpanzees Break Through the Cultural Evolution Barrier - Medriva - March 6th, 2024 [March 6th, 2024]
- Mollusk Eyes Reveal How Future Evolution Depends on the Past - Quanta Magazine - March 6th, 2024 [March 6th, 2024]
- Levy Delves Into the Evolution of ADCs in NSCLC - OncLive - March 6th, 2024 [March 6th, 2024]
- The Snake Is The Spearhead of Reptile Evolution, But Why? - ScienceAlert - March 6th, 2024 [March 6th, 2024]
- 'A very special day: Birds linked to Darwins theory of evolution reintroduced to Galapagos Islands - Euronews - March 6th, 2024 [March 6th, 2024]
- Why the Powerhouses of Cells Evolve Differently in Plants - College of Natural Sciences - March 6th, 2024 [March 6th, 2024]
- Driving the DevOps Evolution: ArgoCD, Tekton and Seamless Migrations - DevOps.com - March 6th, 2024 [March 6th, 2024]
- Finding the Balance: The Evolution of Public Health Guidance Amidst Controversy - Medriva - March 6th, 2024 [March 6th, 2024]
- Insider Podcast: Paolini dishes on her Polish roots and hard-court evolution - WTA Tennis - March 6th, 2024 [March 6th, 2024]
- Interview: Sara Gruen and Rick Elice Talk About the Inspiration and Evolution of the New Musical Water for Elephants - TheaterMania.com - March 6th, 2024 [March 6th, 2024]
- The Evolution of the Laravel Welcome Page - Laravel News - March 6th, 2024 [March 6th, 2024]
- A Serpentine 'Explosion' 125 Million Years Ago Primed Snakes for Rapid, Diverse Evolution - Smithsonian Magazine - March 6th, 2024 [March 6th, 2024]
- The Evolution of Modern Technologies in Car Development - FinSMEs - March 6th, 2024 [March 6th, 2024]
- Milwaukee Transformed: From Bronzeville to Veterans Park, Aerial Timelapses Reveal City's Evolution - BNN Breaking - March 6th, 2024 [March 6th, 2024]
- The eyes are a gateway to evolution of daddy longlegs at least. - University of Wisconsin-Madison - March 6th, 2024 [March 6th, 2024]
- Adrian Newey: RB20 is the next step in Red Bull's design evolution - PlanetSport - March 6th, 2024 [March 6th, 2024]
- LiveScore releases its 'Evolution of Fan' report - Gambling Insider - March 6th, 2024 [March 6th, 2024]
- The loyalty program evolution makes its way to the full-service restaurant category - Nation's Restaurant News - March 6th, 2024 [March 6th, 2024]
- Teenage Mutant Ninja Turtles: The Last Ronin II - Re-Evolution #1 spoiler-free review: goes hard on the action, but ... - Gamesradar - March 6th, 2024 [March 6th, 2024]
- Exploring U.S. Financial Evolution: DAR Hosts Talk on Federal Reserve History in Thomasville - BNN Breaking - March 6th, 2024 [March 6th, 2024]
- Why cloud evolution needs a cohesive approach to succeed - CIO - March 6th, 2024 [March 6th, 2024]
- Gilead Sciences CEO on Company's Evolution and Commitment to the Bay Area - BioSpace - March 6th, 2024 [March 6th, 2024]
- Navigating the AI Quandary: Human Supremacy vs Machine Intelligence Evolution - BNN Breaking - March 6th, 2024 [March 6th, 2024]
- Denis Villeneuve breaks down the evolution of sandworms in 'Dune: Part Two' - Mashable - March 6th, 2024 [March 6th, 2024]
- Continued evolution of law improves governing capacity - Chinadaily.com.cn - China Daily - March 6th, 2024 [March 6th, 2024]
- The Evolution of the DEX Space with dYdX's CEO Antonio Juliano - Blockster - March 6th, 2024 [March 6th, 2024]
- Quick Commerce Evolution: 3PL Firms Aim for Same Day Delivery, Chasing Blinkit and Zepto's Lead - BNN Breaking - March 6th, 2024 [March 6th, 2024]
- What If...? Star Jeffrey Wright Addreses the Watcher's Evolution and 'Epic' Season 2 Finale - CBR - Comic Book Resources - December 31st, 2023 [December 31st, 2023]
- Evolution of the Connected Autonomous Vehicle - Ward's Auto - December 31st, 2023 [December 31st, 2023]
- A project to capture the evolution of human culture. - Psychology Today - December 31st, 2023 [December 31st, 2023]
- The Evolution of a Digital Soul. Beyond Code: A Journey of Heart and | by Mark Randall Havens | Dec, 2023 - Medium - December 31st, 2023 [December 31st, 2023]
- 4 Clues That Reid Is Finally Returning In Criminal Minds: Evolution Season 2 - Screen Rant - December 31st, 2023 [December 31st, 2023]
- Evolution of Samoyed and Kitten's Friendship Delights Internet: 'Wholesome' - Newsweek - December 31st, 2023 [December 31st, 2023]
- Crypto Evolution: Pullix (PLX) vs OKB (OKB) & KuCoin (KCS) - Crypto Reporter - December 31st, 2023 [December 31st, 2023]
- Alfa Romeos mediocre F1 season heralded its era of evolution: Prime Tire - The Athletic - December 31st, 2023 [December 31st, 2023]
- Beyond The Uniform: 10 Years of Evolution in SYNC Performance's Custom Program - SkiRacing.com - December 31st, 2023 [December 31st, 2023]
- Why SZA's evolution into a popstar has earned her recognition as artist of the year - Salon - December 31st, 2023 [December 31st, 2023]
- AI in 2023 Rises, Falls and Evolution - Finance Magnates - December 31st, 2023 [December 31st, 2023]
- Indonesia's Indosat pursues evolution from telecom to tech company - Nikkei Asia - December 31st, 2023 [December 31st, 2023]
- EdTech Evolution: 3 Stocks Educating the Next Generation - InvestorPlace - December 31st, 2023 [December 31st, 2023]
- Informa Tech Interview with Huawei about voice evolution and innovations at 5G Core Summit 2023 - Informa Tech ... - Light Reading - December 31st, 2023 [December 31st, 2023]
- Looking ahead: What will the DeFi evolution look like in 2024? - Ledger Insights - Ledger Insights - December 31st, 2023 [December 31st, 2023]
- Why Cat Bohannon wrote 'Eve, How the Female Body Drove 200 Million Years of Human Evolution' | India News ... - IndiaTimes - December 31st, 2023 [December 31st, 2023]
- The smart-design evolution of the laboratory space - pharmaphorum - December 31st, 2023 [December 31st, 2023]
- The WILD Evolution of Teenage Mutant Ninja Turtles TMNT (VIDEO) - FandomWire - December 31st, 2023 [December 31st, 2023]
- The supernatural invades American museums via indigenous artifacts - Why Evolution Is True - December 31st, 2023 [December 31st, 2023]
- Baleen Whales First Evolved Large Body Size in Cold Southern Waters, New Fossil Shows - Sci.News - December 31st, 2023 [December 31st, 2023]
- The Evolution of Identity in Taiwan The Diplomat - The Diplomat - December 31st, 2023 [December 31st, 2023]
- From the Archive: The Evolution Of Hockey Pools - The Hockey News - December 31st, 2023 [December 31st, 2023]
- 'X-Men: Evolution' Is Better Than 'X-Men: The Animated Series' - Collider - December 31st, 2023 [December 31st, 2023]
- Unveiling the Silver Screen: The Evolution of Celebrity Nudity in Cinema - The Hype Magazine - December 31st, 2023 [December 31st, 2023]
- Are Humans Still Evolving? 'Maybe More Rapidly Than Ever,' Says Scientist - Newsweek - December 31st, 2023 [December 31st, 2023]
- The Intersection of Real Estate and Fintech: Evolution, Impact of Policies, and Global Dynamics - CXOToday.com - December 31st, 2023 [December 31st, 2023]
- Kyle Richards' Style Evolution: Her Best Looks - Us Weekly - December 31st, 2023 [December 31st, 2023]
- Criminal Minds: Evolution Season 2's "Deeper Secrets" Teased By Aisha Tyler - Screen Rant - December 31st, 2023 [December 31st, 2023]
- Saturday: Hili dialogue Why Evolution Is True - Why Evolution Is True - December 31st, 2023 [December 31st, 2023]
- NBA 2K24 MyTEAM New Year Resolution Adds 14 Evolution Cards - ClutchPoints - December 31st, 2023 [December 31st, 2023]
- dive into the history of NASA's logo evolution from the space ... - Designboom - November 8th, 2023 [November 8th, 2023]
- Resolving the puzzle of same-sex sexual interactions - Nature.com - November 8th, 2023 [November 8th, 2023]
- The History and Evolution of Black Friday And How It Got Its Name - Yahoo Life - November 8th, 2023 [November 8th, 2023]
- Evolution of Terran R, with Tim Ellis (Relativity Space) - Payload - November 8th, 2023 [November 8th, 2023]
- Brownell Raves About Breakout Junior's Evolution - The Clemson Insider - November 8th, 2023 [November 8th, 2023]