Automotive industry: expected future development amid Sars-CoV-2 and long-term trends. Cu2 Consulting discusses ten… https://t.co/mcpxGbEJTF
Automotive COVID-19 Recovery Series: Supplier Strategy Reset
Suppliers of all types and revenue levels are heeding the
alarms. The emergence of COVID-19 has thrown a wrench into even the
best supplier strategic plans. It is time to reevaluate revised
assumption sets and determine how well supplier organizations are
prepared for the downstream impacts. COVID-19 is not your everyday
extraneous event. Most in the industry have a clear view of the
beginning and possibly the mid-point although few have visibility
to when and how the end will alter the landscape. Amid working
through the new reality of reduced efficiency, difficulties in
labor staffing, slipping product programs and balance sheet issues
— suppliers are using new skillsets this time around.
Stepping back, entering a post-COVID-19 phase may seem easy compared with the lack of visibility as the industry entered this period in early 2020. Collectively, the ecosystem of original equipment manufacturers (OEMs), suppliers, dealers, and even consumers adjusted well to an incredibly tumultuous period. As production restarted in the May/June period (mainland China first then European Union and North America), we turn to the road ahead. From a strategic perspective, understanding what has changed and what is constant versus earlier strategy settings is critical. There is no doubt that all players will have to reexamine the situation and adjust. Given the significant shifts in available capital, new forecasts for the vehicle sales trajectory, legislative, and regulatory initiatives, as well as expected market conditions — a thorough review is in order.
The second installment of IHS Markit's new Automotive COVID-19 Recovery Series is now available. In our whitepaper; Supplier Strategy Reset, we reexamine assumption sets, legislation, available capital, the fiscal environment, and the trajectory for industry volumes, and layout the key factors to revise a strategic plan.
This whitepaper is one of three whitepapers produced for our COVID-19 Recovery Series.
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- An Automotive Minute: Electric Vehicles in the Biden Adminstration
- Domestic versus Imported Vehicle Loyalty
- 5G, C-V2X, and automotive connectivity in 2021
Webinar | Join IHS Markit as we host our inaugural US Brand Performance Review webinar, unveiling the results of a… https://t.co/AHYRym8pVF