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As the move to EVs rattles supply networks, Carlyle anticipates great things for the Japanese auto sector.

Carlyle anticipates great things for the Japanese auto sector

Carlyle anticipates great things for the Japanese auto sector as EV rattles supply chain - Supply Chain Tribe by Celerity

TOKYO, November 22 - As the worldwide transition to electric cars (EVs) rattles the industry's supply chain, U.S. private equity company Carlyle Group Inc (CG.O) plans to increase its presence in the Japanese automotive industry, according to senior officials.

Japanese auto component makers are reconsidering methods that were previously designed for combustion-engine automobiles as the globe increasingly transitions to EVs.

The decades-old keiretsu structure, a hierarchical pyramid of equity-interlocked suppliers with automakers sitting on top and insuring company stability, used to be a source of strength for the Japanese car industry.

However, researchers predict that the switch to EVs, which need fewer parts but different knowledge, such software engineering, would certainly change Japan's core sector.