EACN warns of increasing fragility of automotive suppliers

Submitted by Thomas RÖHR on 28 September 2022


The European Automotive industry faces various challenges such as electrification, autonomous driving, changing behaviours of customers, or industrial modernisation to meet digitalisation and greening expectations. These challenges are now topped by the impacts of the sanitary crisis and the Russian invasion to Ukraine putting automotive suppliers with their low margins in danger.

Urgent measures are necessary to save the ecosystem

Reduced production volumes, unpredictable production cycles, exploding prices for raw materials, parts, energy, or transport, and foreseeable increases of salaries are burdens suppliers cannot face based on existing contract conditions.

Thus, to avoid the collapse of the European automotive industry, EACN invites stakeholders on all levels of the value chain to

  1. Consider re-examining and adapting existing contracts
  2. Include more flexibility in future contracts in the short-term
  3. Create long-lasting partnerships between stakeholders on a European level
  4. Review the automotive sector’s internationalisation strategies

Read the full Press Release in annex

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