The Covid-19 pandemic will exact a heavy toll on automotive manufacturers and suppliers, who will face mounting financial losses and growing debt. Some may not survive, at least in their current form or without further government bailouts. Such financial fallout, and the need for companies to reduce costs and consolidate investments, could prompt more consolidation at all levels of the automotive industry in the coming years.
The Covid-19 pandemic will exact a heavy toll on automotive manufacturers and suppliers, who will face mounting financial losses and growing debt. Some may not survive, at least in their current form or without further government bailouts. Such financial fallout, and the need for companies to reduce costs and consolidate investments, could prompt more consolidation at all levels of the automotive industry in the coming years.
However, even in the coming weeks and months, as more companies begin restarting production and distribution, the risk of failures in the supply chain could also prompt more immediate consolidation, especially among tier suppliers. In some cases, larger manufacturers might have little choice but to acquire niche players to avoid bringing their supply chains to a halt.
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