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73% Automotive Leaders Say Software-Defined Vehicles Will Be Significant To Their Business Over Next 5 Years

New FedEx and Reuters Events Report Explores How Automotive Supply Chains Are Evolving for the Next Generation of Vehicles

MEMPHIS, Tenn., September 23, 2026 — FedEx Corp. (NYSE: FDX), in collaboration with Reuters Events, today released Automotive Manufacturing: The Auto Sector’s Future Supply Chains, a new report examining how software-defined vehicles (SDVs), autonomous technologies, electrification, and advanced materials are reshaping automotive supply chains.

Based on a global survey of 81 automotive industry professionals, the report found that 73% of respondents expect software-defined vehicles to be very or extremely important to their business over the next five years, highlighting how rapidly the industry is evolving to support the next generation of vehicles. As manufacturers adapt, the research points to growing demand for supplier diversification, end-to-end visibility, and logistics capabilities that help companies respond more quickly to changing market conditions.

“As vehicles become increasingly software-defined, automotive supply chains are becoming more dynamic and data-driven,” said Rakesh Puri, vice president of marketing, global verticals, FedEx. “Manufacturers are building new supplier ecosystems, sourcing more sophisticated components, and responding to rapidly changing production needs. At FedEx, we are staying ahead of these shifts by combining our intelligent global network, real-time insights, and logistics expertise to act as a strategic advisor for automotive customers as they navigate the next era of manufacturing.”

Key findings from the report include:

  • Software-defined vehicles are changing supply chain requirements. Respondents identified cybersecurity and data integrity, greater reliance on firmware and over-the-air updates, and increased semiconductor sourcing among the leading supply chain implications.
  • Vehicle technology is changing logistics models. Nearly eight in 10 respondents said increased vehicle technology has changed their logistics models, and 37% reported changing inbound or outbound transportation modes during the past year to better manage supply chain demands.
  • New materials are creating new sourcing challenges. Forty-five percent of respondents expect their organizations to increase the use of advanced materials over the next five years. Sustainability and regulatory compliance, cost reduction, and weight reduction ranked among the primary drivers, while limited supplier availability, lengthy validation timelines, and higher sourcing costs emerged as leading concerns.
  • Supply chain investment is shifting toward flexibility and visibility. Respondents identified nearshoring or regionalization (46%), supplier diversification (44%), and end-to-end supply chain visibility and tracking (37%) as leading investment priorities over the next three years as they prepare for continued industry transformation.

The report also underscores the growing role of logistics providers as automotive supply chains become more connected and data-driven. As manufacturers increasingly rely on software, semiconductors, sensors, and specialized materials, they are looking beyond transportation providers to strategic logistics partners that can deliver greater visibility, agility, and resilience.
FedEx supports automotive customers through its integrated global network, advanced data and AI capabilities, customs expertise, and specialized logistics solutions designed to help keep production moving in an increasingly dynamic supply chain environment.

Read the full report, Automotive Manufacturing: The Auto Sector’s Future Supply Chains, here: Reuters Events: Automotive USA 2026

About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $86 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 450,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

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