Auto supplier margins decline to near historic low

Navigating seismic business change profitably is proving notably tough for automotive suppliers in the mean time, and margins have dropped to close historic lows. Stagnating car manufacturing, elevated competitors and geopolitical turmoil have pushed the North American and European auto provide phase into what Roland Berger calls, ‘a stage of stagformation’. “On the one hand, suppliers are dealing with stagnant quantity development, whereas on the opposite, they’re present process a elementary transformation that requires them to urgently reshape their enterprise fashions,” explains Felix Mogge, Accomplice at Roland Berger.

‘Stagformation’ could also be restricted to Europe and North America, however different areas are additionally taking successful from notably sturdy headwinds. The 2025 World Automotive Provider Examine, performed by Roland Berger and Lazard, analysed 600 automotive suppliers all over the world.