// Global dynamics are changing the rules of the game
A look at Asia clearly shows the speed and strategic foresight with which the future of automotive is being shaped there. Chinese OEMs – above all BYD – no longer build their plants in isolation, but create entire ecosystems. They integrate suppliers, service providers and living space for employees directly on site. The result: efficient, resilient supply chains and high flexibility with minimal response times.

Saudi Arabia is also investing massively in new technologies and offering highly attractive location conditions. Initial industrial settlements show that new production clusters with enormous growth potential are emerging there – supported by government funding programmes, low energy prices and fast approval processes.

// German OEMs: slow decision-making, declining volumes
In direct comparison, one clear weakness becomes apparent: while vehicles in Asia are sometimes brought to market even with partly immature software and improved later, German OEMs still rely on long development cycles and complex coordination processes. The result is excessively long project timelines and a sluggish climate for innovation.

At the same time, supplier volumes continue to decline – not only due to stagnant or falling sales figures in Europe, but also because of increasing insourcing by OEMs. The aim is to increase their own value creation depth and reduce dependence on suppliers.

// Cross-subsidisation and dependencies: risks in the supply chain
A central issue for many suppliers is their strong dependence on individual OEMs – often with revenue shares exceeding 90%. This dramatically increases risk, especially when projects are being cross-subsidised. In a crisis, OEMs focus on products with high contribution margins – which can quickly become existentially threatening for suppliers that are financing other projects through cross-subsidisation.

A change in mindset is needed: suppliers must learn to say “no” when the business case does not promise sustainable success. A supposedly prestigious contract can quickly become an economic trap.

// Securing flexibility – exploring new forms of collaboration
In a shrinking market environment, the game of musical chairs has long since begun: those who react too slowly and too cautiously will no longer be able to serve the remaining market share. Excess capacity must be reduced consistently. At the same time, more flexibility is needed – structurally, operationally and strategically.

One option is cooperation with competitors. What once seemed unthinkable can now create new economies of scale and secure viability through consortia or targeted partnerships. Volume bundling is becoming a strategic lever.

// Regulation and financing: the double cost pressure
One often underestimated factor is the growing regulatory burden in Germany and the EU. Whether sustainability requirements, supply chain legislation or ESG standards – the demands are steadily increasing, while international competitors operate with significantly less bureaucracy.

At the same time, the current interest rate environment is making necessary investments more difficult. Many suppliers are facing the challenge of refinancing under much worse conditions than just a few years ago. This further increases the economic pressure.

// Restructuring, M&A and the end of excuses
The phase of superficial optimisation is over. Restructuring today must go deeper, be thought through more strategically and be implemented more consistently. Those who continue to wait will have to invest significantly more later – often too late.

M&A is gaining importance as a restructuring instrument, especially when other measures are no longer effective. Although the hoped-for synergies and economies of scale have often failed to materialise in the past, there are still many valid reasons today for targeted acquisitions or mergers, especially where product portfolios are complementary or access to new markets is involved. Numerous private equity firms are successfully operating in this market and enabling a fresh start for companies that had already been written off.