REPORTFuture-oroo:automotive suppllersThree imperatives fororganzational successRolandBerger
Managementsummaryheautomativesupplerindustryfacessignificantchallengescharocterizedbyrisingcosts,rapidtechnologicaldisruption,andfierceglobal competition.Europeansuppliers, in particular, are experiencing structuralinefficiencies, withEBITmargins down bythree percentage points.Stagnating productivity and outdatedorganizationalstructuresarefurtherunderminingcompetitiveness,whilegeopoliticaTonavioatethiscomblexlandscape,supliersmusturgentlytransformtheiroperatingmodels. We make recommendationsfocusedonthreeinterconnectedimperatives, whichshouldbeaddressedholistially:adontinga"zaro-based"approachtostrealineoperationsandstandardizeprocessesLeveragingAlandautomationincorporatefunctions,combinedwithfosteringaperformance-drivenculture through targetedincentives, is essentialformaintainingcosSimalitvinaoraanizationalstructuresandempoweringfrontlineteamstomake decisionsenhancesagityandresponsivenesstomarketdemandas,Focusinghiringonengineeringsoftware, and@Alcoapobiltis, aswellas develbopingfuture-ready slils,furtherdriveinnovationand responsiveness.Strengthen organizationalresilience andflexibilityBreckinadownsilosandbuildinagcros-functionalplatformsforcollaboration,integratingsebougA1100vi9puesow,Jenopresilince intogovernance with sharedKPls and dashboards, and investinginchangemanagementarecriticalstepstoenhanceorganizationalreslienceandsupporteffectivetransformation.
ContentspageTimeforchange:StrugglingsuppliersneedtotransformtheiroperatingmodelsThefuture-proofsuppliersThreeimoerativestotransformyour organization2.1/Achilevecostcompetitveness,2.2/Upliftorganizationalspeedandinnovationand flexibilityRecommendation
Time forchange:Strugglingsuppliersneed totransformtheiroperating modelsThe globalautomotive supplierindustry isunder unprecedented pressure,caughtin aperfectstorm of rising costs, rapid technological disruption, and intensifying competitions, in particular. face mounting challenges. with EBITmarginsstructurallyels byalmostthreepercentagepointsandSG&Aratiosupby2-3pecially relevantgiven thegrossInaddition, geopoliticaltensions are,chains.foreiantrade.and revenuepoolsnwhile,Chinese suppliers are redefining theatingat"Chinaspeed'andleveragingleangovernance,cost-Against thisbackdrop,suppliersmusturgently transform theiroperatingmodelstoremain1Achievecost competitiveness by eliminating inefficiencies,Ileveraging automation, andfosteringaperformance-drivencultureand empowereddecision-making3Strenathenorganizationaleresilenceandflexiblityby breakingdownsilos,ebeddingInthenextchapterswelookateachimperativeindetailandprovideconcreteactionareasforimplementation.To naviqatethedisruptionsposed by new market playersEuropean automotive suppliers,need to transform their operatingmodels and close criticalperformancegaps."NielsKammerer,Partner
While SG&Aratio declined globallysince 2016, European suppliers stilEBITmarginperregion,2014-2024(xofrevenuel]Europe7.05.97.07.3201420162018202020222024NorthAmerica2.3201420162018202020222024China8.33.8201420162018202020222024Source:FactSet,RolandBerger/Lazardsuppllerdatabase(Actuals)SG&Aratiodevelopment(excl.R&D)perregion,2016-2024[%ofrevenu...
