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The speed and scale of COVID-19 social and economic fallout is
quickly materializing in concerns about the future recovery of
vehicle demand with the associated consequences on OEMs' and
suppliers' investment decisions. With cashflow drying up due to
sales activity grinding to a halt in core markets and little
prospect for an imminent "return to normal", automakers and
suppliers are looking to shore up their finances by preserving cash
and other non-critical expenses. This context combined with
potential adjustments to the regulatory framework on key automotive
aspects in the areas of e-mobility, autonomy and connected car, for
example, could potentially have far-reaching implications on the
technology deployment as well as short- and medium-term research
investment priorities.
The Automotive Supply Chain and Technology Team at IHS Markit
has conducted a survey to gather automakers' and suppliers' view
on:
Size of research and development (R&D) budget cuts
