STUTTGART -- As the economy strengthens and credit becomes more expensive, German auto suppliers are being threatened with a second wave of bankruptcies.
"The stronger and more rapid the economic recovery, the higher the risk of insolvencies for already weakened suppliers," said Siegfried Frick, managing director of Deloitte Corporate Finance Advisory.
If no counter-measures are taken this year or in coming years, there will be about 60 more bankruptcies, he predicts.
During the crisis, about 100 suppliers in Germany became insolvent. The main reason was cash flow problems. Now the industry has to finance the upturn and simultaneously replenish the financial reserves that melted away.
Meanwhile, interest rates of 8 percent to 9 percent in the metals branch are not unusual, even for loans collateralized with guarantees.