Philipp Duwald, Horvath: “Between 2019 and 2020, profitability has fallen sharply for majority of automotive suppliers”

“Disruptors like Covid-19, inflation, energy crisis, & supply chain issues call for action in the automotive supplier industry.  To better understand how the automotive suppliers perceive the current situation we did a study in autumn of this year. Besides the challenges from the technological side regarding electrification, there are significant macroeconomic factors that impact the current situation for the automotive suppliers,” Philipp Duwald, Principal Automotive, Horvath said during Romanian Automotive Forum 2022 organized by Automotive Today and The Diplomat-Bucharest.

“One statement of an automotive supplier is saying that inflation is putting a massive strain on its cost and earnings situation in most countries and plants.

The many macroeconomic factors have a massive impact on the profitability of suppliers, in some cases with serious consequences.

Between 2019 and 2020, profitability has fallen sharply for majority of suppliers. There is a recovery in 2021. However, profitability is still below the level of 2019.

Three fields of action are relevant for CxOs in the automotive supplier industry to cope with the current challenges: 1) create transparency by simulating profitability and liquidity impact; 2) conduct active claim/ compensation management with OEMs; 3) foster cross functional operational excellence and cost efficiency.”

Full recording of the conference: