Corona affects almost every industry, and German car suppliers are not spared either. This year they earn on average 20 percent less.
Munich (dpa) – Management consultancy PwC expects an average 20 percent drop in sales from German auto suppliers this year and a dry streak through 2023. PwC industry expert Thomas Steinberger said on Monday: “Cases of restructuring will increase.”
The supplier industry has done well in the last eight years and had more reserves and access to credit at the beginning of the Crown crisis than in the 2008 financial crisis. But “the liquidity buffers are now depleted and suppliers with a focus on businesses in Europe are mostly facing great challenges, ”said Steinberger.
Large global companies benefited from the recovery in demand in Asia. Suppliers with a strong service and parts business would not have suffered such significant losses this year. “In total, however, by 2023 there will probably not be the same sales volumes as before the crisis,” said PwC industry expert Jörg Krings.
In the face of great uncertainty, suppliers need “planning certainty with respect to laws and regulations” for the upcoming restructuring. That ranges from climate regulations to taxes, customs duties, insolvency law, health protection and short-term work to potential state aid.