Structural problems threaten even seemingly healthy companies. Without consistent transformation, the money runs out. But who will finance this transformation?
The fundamental upheaval in the automotive supplier industry is becoming a litmus test in Germany: The supplier landscape in Germany, which often tends to be dominated by midsize companies, is under immense pressure - and could soon be caught in a vicious circle that could jeopardize the continued existence of former industry giants.
The specific problems arise from a combination of challenges: The complete shift towards e-mobility and the shift in competencies towards electronics and software are mostly understood as a work order. However, access to scarce raw materials is a risk factor in this country more so than with the competition from China or the United States, especially in view of intensified trade conflicts. European regulation, which is detached from the traditional cycles of the automotive industry and can in some cases be unclear, is also putting considerable pressure on companies.
All in all, this transformation demands massive investments from the supplier industry: According to our calculations, around 40% of the approximately $250 billion in automotive capital expenditure worldwide is currently being spent on this transformation. In some companies, the rate is significantly higher. More than $100 billion is therefore required year after year - and only those who can raise the money will remain in the game.