North American electric vehicle demand falls short of expectations, suppliers worry about return on investment

Due to lower-than-expected demand for electric vehicles in the North American market, some large parts suppliers such as Aptiv, Magna International Inc. and BorgWarner have begun to cut R&D spending. They are worried that their investments may not get the returns they deserve in the current industry environment. At the same time, Continental is also considering splitting its automotive business and significantly reducing its R&D activities.