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Customer LoginsAutomotive COVID-19 Recovery Series: Supplier Strategy Reset
Suppliers of all types and revenue levels are heeding the
alarms. The emergence of COVID-19 has thrown a wrench into even the
best supplier strategic plans. It is time to reevaluate revised
assumption sets and determine how well supplier organizations are
prepared for the downstream impacts. COVID-19 is not your everyday
extraneous event. Most in the industry have a clear view of the
beginning and possibly the mid-point although few have visibility
to when and how the end will alter the landscape. Amid working
through the new reality of reduced efficiency, difficulties in
labor staffing, slipping product programs and balance sheet issues
— suppliers are using new skillsets this time around.
Stepping back, entering a post-COVID-19 phase may seem easy
compared with the lack of visibility as the industry entered this
period in early 2020. Collectively, the ecosystem of original
equipment manufacturers (OEMs), suppliers, dealers, and even
consumers adjusted well to an incredibly tumultuous period. As
production restarted in the May/June period (mainland China first
then European Union and North America), we turn to the road ahead.
From a strategic perspective, understanding what has changed and
what is constant versus earlier strategy settings is critical.
There is no doubt that all players will have to reexamine the
situation and adjust. Given the significant shifts in available
capital, new forecasts for the vehicle sales trajectory,
legislative, and regulatory initiatives, as well as expected market
conditions — a thorough review is in order.
The second installment of IHS Markit's new Automotive COVID-19
Recovery Series is now available. In our whitepaper; Supplier
Strategy Reset, we reexamine assumption sets, legislation,
available capital, the fiscal environment, and the trajectory for
industry volumes, and layout the key factors to revise a strategic
plan.
This whitepaper is one of three whitepapers produced for our
COVID-19 Recovery Series.