RESTRUCTURING AUTOMOTIVE

NUREMBERG
FEB 2025

Successful kick-off of the
KEYPLAYER-ROADSHOW 2025:
“Restructuring in the
Automotive Supplier Industry”

Insights from our
panel discussion

    Challenges facing the
    automotive supplier industry

    Since 2024 at the latest, one thing has become very clear: the industry is facing enormous upheaval driven by technological developments, changing market conditions and global economic uncertainty. During the event, we addressed the following challenges in particular together with our guests:

    // Market dynamics and external influencing factors: companies must navigate between internal controllable aspects and external influences such as political and economic conditions.

    // Technological deficits: while Tesla is setting new standards through a strong focus on user experience and convenience, this area is still being inadequately addressed by traditional OEMs.

    // Structural challenges:

    • Lack of technology leadership and declining enthusiasm for the automobile as a product

    • Uncertain volume commitments from OEMs and growing dependence on volatile sales markets

    • High energy costs and increasing regulatory hurdles in Germany

    • Lack of international competitiveness – especially compared with China, where, for example, development centres operate 24/7

    // Overcapacity and personnel structures: experts predict that between 130,000 and 170,000 jobs in the German automotive supplier industry are at risk.

    In many cases, targeted restructuring measures are required to safeguard the competitiveness of companies in the sector. In the discussions during our event, we identified several key approaches:

    // Efficiency improvement and risk management:

    • Reducing fixed costs by optimising sites, personnel structures and operating resources

    • Entering into strategic partnerships with technology partners and service providers

    • Reducing complexity and the number of product variants

    // Development of new business models:

    • Achieving greater flexibility and profitability through targeted realignment and, where necessary, downsizing

    • The frequently pursued “last man standing” strategy is not realistic for most companies – in the long term, only a few providers will be able to hold their ground

    • Insolvency should be used as a strategic restructuring instrument rather than being treated as a taboo

    // International relocation as a competitive factor:

    • Germany’s competitiveness is declining – countries such as Switzerland and Italy are becoming more attractive

    • Relocating production to low-cost countries enables greater flexibility and a sustainable reduction in the cost base

    The automotive supplier industry is at a turning point. While uncertainty and disruption are shaping the sector, opportunities are also emerging for companies that act decisively and pursue clear strategies. The key to success lies in the willingness to critically question existing structures and explore new paths.

    The event made it clear to us that operational adjustment to Germany’s location-specific conditions is essential. At the same time, companies must have the courage to implement necessary changes early and consistently in order to remain competitive in the long term.

    Our KEYPLAYER ROADSHOW will continue this dialogue in further cities across Germany and will continue to provide decisive impulses for the future of the industry at upcoming events.

    Ihr persönlicher Ansprechpartner für die KEYPLAYER X CHANGE ROADSHOW AUTOMOTIVE 2025

    Alexander Kujumdshiev
    PARTNER & DIRECTOR AUTOMOTIVE
    DRAG
    CLICK