On the front lines of the coronavirus pandemic

A special report exploring how automotive suppliers are battling to survive the war against the coronavirus and preparing to thrive as the pandemic subsides.

A special report from the Automotive News Data Center
Sponsored by

 

What are automotive suppliers across North America doing to shore-up liquidity and reduce cost to survive the coronavirus pandemic? What’s their outlook on the industry in a post COVID-19 world, and what do suppliers think will be the most significant challenges to coming back online?

Read this special report informed by a survey of 120 automotive suppliers in the United States, Canada and Mexico and gain perspective from Dietmar Ostermann, senior partner and US Automotive Advisory Leader, PwC.

 
 
 

ARE SUPPLIERS PREPARED TO SURVIVE A SLOW RECOVERY?

A majority of respondents forecast a slow, gradual recovery, yet most say they are not well prepared to respond to the scenarios they forecast as most likely in North America.

  Uneasy consumers
Lockdowns lift, but lagging consumer confidence and uncertainty result in a slow, gradual recovery
A soft opening
Lockdowns lift gradually, but suspension of school, sporting events, concerts, trade shows, etc. extends through 2020
A second wave
Lockdowns lift and consumers start coming back, but a resurgence of the coronavirus delays sustainable growth into 2021
A roaring comeback
Lockdowns lift, and consumers come roaring back, creating a rapid recovery and surge in economic activity
A long haul
Lockdowns remain for the remainder of 2020, stalling significant growth and recovery into 2021
WHICH OF THESE SCENARIOS DO YOU BELIEVE IS MOST LIKELY TO OCCUR IN NORTH AMERICA? 36% 29% 23% 9% 3%
RESPONDENTS WHO SAY THEY ARE WELL PREPARED TO RESPOND TO EACH SCENARIO 32% 32% 12% 53% 13%
WHICH OF THESE SCENARIOS DO YOU BELIEVE IS MOST LIKELY TO OCCUR IN NORTH AMERICA?
Uneasy consumers
Lockdowns lift, but lagging consumer confidence and uncertainty result in a slow, gradual recovery
36%
A soft opening
Lockdowns lift gradually, but suspension of school, sporting events, concerts, trade shows, etc. extends through 2020
29%
A second wave
Lockdowns lift and consumers start coming back, but a resurgence of the coronavirus delays sustainable growth into 2021
23%
A roaring comeback
Lockdowns lift, and consumers come roaring back, creating a rapid recovery and surge in economic activity
9%
A long haul
Lockdowns remain for the remainder of 2020, stalling significant growth and recovery into 2021
3%
RESPONDENTS WHO SAY THEY ARE WELL PREPARED TO RESPOND TO EACH SCENARIO
Uneasy consumers
Lockdowns lift, but lagging consumer confidence and uncertainty result in a slow, gradual recovery
32%
A soft opening
Lockdowns lift gradually, but suspension of school, sporting events, concerts, trade shows, etc. extends through 2020
32%
A second wave
Lockdowns lift and consumers start coming back, but a resurgence of the coronavirus delays sustainable growth into 2021
12%
A roaring comeback
Lockdowns lift, and consumers come roaring back, creating a rapid recovery and surge in economic activity
53%
A long haul
Lockdowns remain for the remainder of 2020, stalling significant growth and recovery into 2021
13%

Source: Automotive News Data Center

WHAT ARE THE MOST SIGNIFICANT CHALLENGES SUPPLIERS CITE AS THE INDUSTRY RECOVERS FROM THE CORONAVIRUS?

57% 52% 51%
Managing uncertain automaker production schedules Implementing operational changes in response to the "new normal" Flexing operations in response to fluctuating recovery scenarios
Managing uncertain automaker production schedules 57%
Implementing operational changes in response to the "new normal" 52%
Flexing operations in response to fluctuating recovery scenarios 51%

Source: Automotive News Data Center

WILL THE CORNOVIRUS SLOW THE PACE OF INNOVATION IN AUTONOMOUS AND ELECTRIC VEHICLES?

Accelerate the adoption of autonomous vehicles 55%
Accelerate the adoption of electric vehicles 57%
Create a tipping point to shared, integrated mobility 57%

Source: Automotive News Data Center

 

Download the Report

 

About the authors

Steve Schmith is executive director of custom research and data strategy at Automotive News. He has more than 20 years of experience in the automotive industry and has authored a number of reports exploring consumer interest in advanced automotive technology and manufacturing competitiveness.

Dietmar Ostermann has 30 years of consulting and automotive industry experience and leads PwC's US Automotive Advisory practice in Detroit. He previously led PwC's Global Auto Advisory business, including all consulting and deals activities for automotive OEMs, Tier 1 and Tier 2 suppliers, raw materials providers, auto aftermarket participants and logistics services providers to the industry.

Akshay Singh is a partner in PwC's US Automotive Advisory practice. He has 20 years of consulting and automotive industry experience, including helping automotive OEMs, Tier 1 and Tier 2 suppliers and private equity clients on issues related to portfolio rationalization, large-scale cost transformations, M&A and connected, autonomous, shared and electric technologies.

ABOUT CUSTOM RESEARCH FROM THE AUTOMOTIVE NEWS DATA CENTER
The Automotive News Data Center is partnering with the industry to create custom research initiatives to deliver data-driven insight and perspectives pertinent to their businesses. For more information about our custom research capabilities, contact Steve Schmith, executive director of custom research and data strategy, at [email protected].