Automotive suppliers’ business sentiment reached an all-time low in the CLEPA McKinsey September 2022 Pulse Check.
About 70% of suppliers saw their profitability drop to levels that could already start undermining their ability to invest in R&D, the workforce and new business activities.
Three consecutive years of crisis have eroded the financial health of around one in two suppliers. Despite recent declines, gas prices in the EU remain five times higher than in North America.
There are first signs of automotive investment flows shifting toward the US, with US destined foreign direct investment into enabling technologies tripling in the first nine months of 2022. Nevertheless, the supply industry holds strong in its commitment to delivering safer, smarter and more sustainable mobility solutions.
“Despite a perfect economic storm, the transformation of our industry continues,” said Nils Poel CLEPA senior manager trade and market affairs.
“Suppliers are investing in reskilling, plants and R&D but uncertainties in raw materials supply and cost remain a challenge. How we contain those costs and secure supplies will determine the extent to which investments in the transformation will pay off in the years ahead.”
