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An Automotive Minute [S2|E37] Reset with Michael Robinet

19 October 2020 1:07 Michael Robinet

The automotive industry has been working at a fever pitch since late May when we emerged from the COVID-19 driven output closures. The combination of depleted vehicle inventories and a strong sales pace has equated to the industry’s inability to return to normal inventory levels until early next year. Even with a 2-month break, we will still build approximately 13 million light vehicles in North America for 2020.

Outside of these short-term market disruptions, smarter suppliers are still looking past next quarter to the future. Our industry is in the midst of significant structural shifts surrounding vehicle electrification, autonomous driving system content and a changing vehicle value equation.

If you are a supplier, strategic questions surround your future risk profile, financial performance and how these changes impact future competitiveness. Does one benefit from these shifts, suffer a declining market or in some cases – are you agnostic? Whatever the perspective, these shifting industry dynamics call for a Supplier Strategy Reset.

This has been Michael Robinet with an IHS Markit Minute.

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Speaker: Michael Robinet, Executive Director, Automotive Advisory Services, S&P Global Mobility

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