Automotive
Supply Chain Management
The Perfect Storm: Structural Pressure and Cost Challenges
Automotive suppliers are facing an unprecedented combination of inflation, regulation, electrification impact, and geopolitical instability. These dynamics are reshaping the industry:
- Margins are under historic stress
- Transformation efforts are outpacing financial resilience
- Many suppliers are “riding two horses” — stuck between the old ICE world and the EV future
- Despite growing revenues in some areas, true profitability remains elusive
On top of this, Asian competition — particularly from China and Korea — is accelerating, creating a divide between resilient winners and struggling survivors.
What's inside?
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Supplier margins still below pre-COVID levels, esp. for SMEs
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Few “Winning Champions” combine growth with resilience
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10–20% of portfolios destroy value (“bleeder” programs)
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Sustainable EBIT must reach ~7% (not 3–5%)
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Rising refinancing risk due to weak equity and high capital costs
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Asian suppliers pull ahead: BEV focus, speed, cost edge
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“BEV trap”: top-line growth, shrinking profit margins
