RESTRUCTURING AUTOMOTIVE
NUREMBERG
FEB 2025
Successful kick-off of the
KEYPLAYER-ROADSHOW 2025:
“Restructuring in the
Automotive Supplier Industry”
_CHALLENGES FACING THE AUTOMOTIVE SUPPLIER INDUSTRY
On 19 February 2025, the kick-off of this year’s Automotive Roadshow on the topic of “Restructuring in the Automotive Supplier Industry” took place at Zollhof Nuremberg. The Roadshow is part of the KEYPLAYER X-CHANGE event series.
In a selected circle of 25 decision-makers from the industry, primarily from Northern Bavaria, we analysed current challenges in the automotive sector and jointly developed practical solutions. The event offered all participants a valuable platform for open exchange and discussion of key topics that will have a significant impact on the future of the automotive supplier industry.
The discussion was moderated by our Partner and Director Automotive, Alexander Kujumdshiev. In addition, Dr Alexander Jaroschinsky and Patrick von Alvensleben from EY Parthenon, as well as our Advisory Board member Prof. Dr. Markus Exler, enriched the discussion with in-depth analysis and valuable practical insights from the perspective of restructuring advisory.
Insights from our
panel discussion
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
Conclusion and
outlook
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
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