The role of electric vehicles for supply chain sustainability in the automotive industry

Electric vehicles are perceived as key technology in the automotive industry to contribute to sustainable development with lower greenhouse gas emissions, less air pollution for citizens and new job opportunities with positive social impact. So far the impact of electrified powertrains on the automotive industry supply chain sustainability and the development of the passenger car fleet have not been investigated in an integrated way. In our study, we focus on the long-term industry supply chain design end-to-end from the raw material exploration down to vehicle sales including the vehicle usage phase as well as reverse supply chain activities. Specifically, we address the long-term dynamics in the industry supply chain together with the fleet and powertrain development towards 2030 from a global perspective with a special focus on Germany and China. Based on industry data and using a sustainable supply chain optimization framework covering economic, environmental and social objectives, the study analyzes where jobs could be created or cut down, how total emissions in the supply chain including the usage phase of passenger cars could be reduced and how supply chain wide costs would develop. In addition, the impact of alternative market and technology scenarios as well as governmental regulations on the mix of powertrains in the vehicle fleet is investigated. (C) 2014 Elsevier Ltd. All rights reserved.