US Autos, Auto Parts and Auto-tech "Expert Call Takeaways on Vehicle E/EA" Spak

Research evidence excerpt

US Autos, Auto Parts and Auto-tech "Expert Call Takeaways on Vehicle E/EA" Spak

Global Research

11 June 2026ab

US Autos, Auto Parts and Auto-tech Equities

AmericasExpert Call Takeaways on Vehicle E/EA

Automobiles

Joseph Spak, CFA

We held an expert call with Doyeon Sohn, Former Global Innovation Director at Aptiv Analyst

covering zonal architectures, software defined vehicles, content winners/losers, OEM vs. joseph.spak@ubs.com

supplier responsibilities and applications of technological know-how to other end +1-212-713 3089

markets. See here for replay of our call. Our key takeaways are as follow: Robert Saltzman

The shift to zonal architecture is still in its early stages. It's difficult for OEMs to Analyst

robert.saltzman@ubs.com

integrate this new architecture given how ingrained traditional architectures are in

+1-212-713 2992

legacy programs. While legacy OEMs have migrated somewhat to domain-based

architectures, Doyeon believes companies who were able to build their Alejandro Nuno

Associate Analyst architecture from the ground up (e.g. Tesla/Rivian) found it much easier to adopt

alejandro.nuno@ubs.com

zonal architecture.

+1-212-713 3886

This move comes with a number of advantages as the zonal architecture has wide Gabriel Gonzales, CFA

ranging effects through the entire supply chain. 1) Doyeon indicated that 10-15% Associate Analyst

of the wiring content could be eliminated, possibly up to 25% in more complex gabriel.gonzales@ubs.com

trims. 2) Doyeon also believes that 25-50% of the labor required to manufacture +1-212-713 4866

and assemble the wiring could be eliminated. 3) The simpler wire harness also

simplifies logistics given its smaller footprint and lighter weight.

Doyeon stated pre-spin Aptiv held a unique value-add in that they could optimize