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Automotive
Procurement & Cost Management
24.06.2024 | Article

Automotive Supplier Archetypes

Identify your strategic profile today

Explore the four automotive supplier archetypes and learn how H&Z can guide your transition towards sustainable profitability and competitive growth.

How EBIT Optimisation and Growth Strategy Define Industry Winners

The European automotive supplier industry is navigating a structural profitability crisis. Amid mounting margin pressure, market volatility, and rising business transformation costs, suppliers are increasingly diverging into distinct performance categories.

Drawing from an in-depth profitability analysis of 93 European companies, H&Z has identified four strategic archetypes shaping the industry landscape in 2025: Winning Champions, Stable & Selective, Growth at Any Cost, and Struggling Survivors.

At the heart of this segmentation lie two critical metrics: EBIT optimisation and revenue growth. These indicators are key to long-term resilience and competitiveness.

 

Defining the Four Archetypes

Using our EBIT vs. Growth matrix, which maps companies across all tiers and sub-sectors, we uncovered the following profiles:

  • Winning Champions: Strong in both EBIT and growth, these suppliers excel in innovation, cost management, and operational efficiency. They scale profitably while maintaining high returns
  • Stable & Selective: These mature, regionally anchored firms deliver steady profits but limited growth. Often conservative in their growth strategy, they focus on risk mitigation and internal control
  • Growth at Any Cost: High-growth suppliers yet to achieve profitability. Rapid expansion without financial discipline can jeopardise stability
  • Struggling Survivors: Hampered by outdated models and flat revenues, these firms require immediate strategic consulting and EBIT recovery plans

 

Strategic Impact: Why Classification Matters

Each archetype requires a customised approach:

  • Champions should double down on smart scaling and innovation
  • Selective players must ignite growth while safeguarding margins
  • Growth seekers need a shift towards sustainable profitability
  • Survivors demand urgent cost and portfolio restructuring

Understanding your company’s position enables more effective leadership, investor trust, and realistic planning amid uncertain EV timelines and restricted capital flow. 

 

The H&Z Approach: EBIT-First Transformation

At H&Z, we don’t stop at insights. Our EBIT-first methodology drives practical and results-focused transformation. We collaborate with automotive suppliers to:

  • Analyse EBIT bridges
  • Identify loss-making programmes
  • Optimise levers such as pricing, claims, procurement, and overhead

Whether your firm is a Champion scaling profitably or a Survivor needing turnaround, our hands-on support unlocks resilient growth.

 

Ready to benchmark your EBIT performance?

Explore our full study or contact us to start your journey towards EBIT optimisation and profitable transformation.

Find out more

Get in Contact with our expert

Dr. Albert Neumann

Partner

Dr. Albert Neumann is a Partner at H&Z and an expert in the automotive industry, focusing on corporate strategy, R&D, and integrating sustainability through digitalisation and circular economy approaches​.

Dr. Albert Neumann

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