JANUARY 2026AUTO BUSINESS OUTLOOK 8IN MY OPINIONBy Sacha Porges, Global Director - Lead Customer Quality & New Programs, GKN AutomotiveTHE IMPACT OF ELECTRIFICATION ON PASSENGER VEHICLE WARRANTIES, CONTRACT PRICING, SERVICE & SUPPORT As we barrel down the road in our transition to an electrified passenger mobility future, I would like to focus on how this brave new world is impacting one of many important areas-- warranty-- and how the expectations of both OEMs and Tier1's who provide the electrical Hardware with embedded Software are evolving, with resulting significant impacts on Pricing, Service & Support.For this article, we will look at one of the most important (and complex) elements of a `3-in-1' Electric Drive Unit (or EDU) ­ the Inverter.Inverters perform multiple critical functions within an eDrive system:· Convert Battery DC into 3-phase AC, to power the Motor· Power ranges from 80kW ­ 200+kW· Provide precision control & monitoring of power to protect the PCBA & electrical components· Maximize energy delivery & efficiency· Precisely control the eMotor speed and torque· Ensure functional safety compliance to ISO 26262 requirements (through both hardware and software)In many cases, eDrive system providers have responsibility for Inverter design & software-- but will partner with suppliers to sub-contract some (or all) of the physical manufacture of these complex components due to high cost of vertical integration. The Inverter is effectively the `brain' of the EDU, and is constantly interacting with the vehicle, simultaneously receiving inputs (commands) and providing outputs (both physically & digitally) to the vehicle system.The embedded software necessary to do this is also incredibly complex; a modern EV now deploys upwards of 100 million lines of code or 10x that of the F-35 stealth fighter ­ safe to say, the Inverter is definitely not a simple `commodity' part! Supply ChainNow, let us look at atypical Supply Chain for an Inverter from Supplier to Tier #1, OEM and the Final Customer.Robust cybersecurity is essential to protect the highly sensitive proprietary software that is embedded in the Inverter at multiple stages throughout this cycle, requiring the entire Supply Chain to beTISAX (Trusted Information Security Assessment eXchange) certified.Electrical HW with embedded SW must be protected from theft or attempts to plagiarize the design and/or SWat the Inverter, EDU & vehicle levels, requiring SW `keys' (immobilizers). Such mandatory precautions even extend to deploying tamper-proof Inverter packaging duringClearly, the Inverter Supply Chain is highly complex with
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