Automotive supplier: Opportunity in the crisis?

In a guest article for Unternehmer Edition, Christian Saxenhammer talks about the situation of German automotive industry. / 2019.06.01

The automotive industry is suffering from various factors, such as the Diesel scandal, the new emission measurement system and the trade dispute between China and the USA. This weakness is being felt above all by suppliers. Added to this is the megatrend of e-mobility, which is forcing companies to adapt to change.

In the current crisis of the automotive supply industry, two trends in particular can be identified. Firstly, the respective segments are affected differently. Without a doubt, companies in the powertrain sector are exposed to the greatest transformation pressure. The change to electric mobility is reducing the complexity of the technical requirements in the car. In the case of electric vehicles, a large proportion of the parts that were previously manufactured by car suppliers are no longer needed. The former strength of many of these suppliers to specialize in a few components is now becoming their greatest weakness.

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