RESTRUCTURING AUTOMOTIVE

STUTTGART (BÖBLINGEN)
APR 2025

Third stop of the
KEYPLAYER-ROADSHOW 2025:
“Restructuring in the
Automotive Supplier Industry”

Insights from our
panel discussion

    Challenges facing the
    automotive supplier industry

    // Global situation: opportunities and challenges
    The current market environment is characterised by uncertainty and volatility, while at the same time offering new opportunities. Global developments in particular are having a major impact on the automotive industry:

    US tariffs: OEMs and suppliers are under pressure. The recommendation is to stay calm and remain capable of acting.

    China: no longer the reliable partner it once was. India, too, despite a strong educational base, does not always convince in terms of reliability.

    Forecasts: currently difficult to rely on, making planning more challenging.

    New markets: Africa and Eastern Europe are increasingly moving into focus. Locations in Ukraine in particular stand out for their motivated teams and competitiveness.

    // Structural crisis rather than a short-term downturn

    The challenges facing the industry are not cyclical, but structural in nature. The former mantra that “growth heals everything” is no longer valid. As measures such as short-time work lose their effectiveness, deeper and more far-reaching approaches are required:

    Plant closures: often prevented by internal interdependencies. The issue is less a lack of willingness than a lack of the necessary flexibility.

    Bold steps: measures are needed that go beyond the classic tools.

    // Cooperation as the key to success

    In times of transformation, cooperation is more important than ever. Successful partnerships such as Renault, Dongfeng and CATL show how companies can benefit from the know-how of other markets. Some companies are even using the defence sector to utilise capacity.

    Thinking outside the box is welcome: cooperation should become the new competitive model.

    Electromobility: a beacon of hope with challenges

    Electromobility remains a key topic for the future, but continues to raise questions:

    Stable growth? OEMs are reporting high growth rates from China, yet there remains scepticism regarding long-term stability.

    Postponed production plans: delays to SOPs and EOPs of more than twelve months pose liquidity risks.

    // Europe’s innovation deficit

    A central topic of the discussion was Europe’s lack of innovative strength compared with other regions:

    Cultural barriers: while China has long defined the car as a “third living space”, Europe often remains trapped in traditional ways of thinking.

    Cost structures: high wages and limited flexibility make it more difficult to develop new concepts. Regions such as North Africa and Eastern Europe may become increasingly important in the future.

    The crisis is real, but it also creates room for genuine transformation. Those who continue to focus on preservation risk falling behind. Now is the time for cooperation, structural adjustment and strategic expansion. Europe must become bolder if it is to remain competitive globally.

    We would like to thank all guests, speakers and discussion partners for their constructive contributions and look forward to the next stops of the Roadshow, with more exciting insights to come.

    Ihr persönlicher Ansprechpartner für die KEYPLAYER X CHANGE ROADSHOW AUTOMOTIVE 2025

    Alexander Kujumdshiev
    PARTNER & DIRECTOR AUTOMOTIVE
    DRAG
    CLICK