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Automotive Industry:Europe: Difference between revisions
Automotive Industry:Europe (view source)
Revision as of 18:21, 14 September 2023
, 14 September 2023→KPMG 2023
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[[File:Screenshot 2023-09-14 115642.png|center|thumb|472x472px|https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/02/the-european-automotive-industry.pdf]] | [[File:Screenshot 2023-09-14 115642.png|center|thumb|472x472px|https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/02/the-european-automotive-industry.pdf]] | ||
'''The financial health of suppliers is deteriorating rapidly''' | '''The financial health of suppliers is deteriorating rapidly''' | ||
[[File:Screenshot 2023-09-14 121330.png|left|thumb|https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/02/the-european-automotive-industry.pdf]] | |||
[[File:Screenshot 2023-09-14 121353.png|thumb|https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/02/the-european-automotive-industry.pdf]] | |||
Lower production volumes coupled with a forced shift into a lower-value market can put significant pressure on suppliers as they struggle with an uphill battle against revenue decline | Lower production volumes coupled with a forced shift into a lower-value market can put significant pressure on suppliers as they struggle with an uphill battle against revenue decline | ||
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* The most recent data shows that about a third of suppliers are in the ‘distress zone’, with a further 34 percent in the ‘grey zone’ of improvement potential. | * The most recent data shows that about a third of suppliers are in the ‘distress zone’, with a further 34 percent in the ‘grey zone’ of improvement potential. | ||
* The average automotive supplier debt portfolio includes around 49 percent short-term debt (with less than 2 years maturity), 31 percent medium-term debt (maturing in 2–5 years), and around 20 percent long-term debt | * The average automotive supplier debt portfolio includes around 49 percent short-term debt (with less than 2 years maturity), 31 percent medium-term debt (maturing in 2–5 years), and around 20 percent long-term debt | ||
[[File:Screenshot 2023-09-14 121211.png|center|thumb|746x746px|https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/02/the-european-automotive-industry.pdf]] | [[File:Screenshot 2023-09-14 121211.png|center|thumb|746x746px|https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/02/the-european-automotive-industry.pdf]]'''Falling battery prices and scale efficiencies can allow EVs to offset inflation''' | ||
The average price of an ICE passenger car is expected to keep growing through the next decade, mainly driven by price inflation. Yet EVs still have room to maneuver | |||
* The cost of batteries is expected to continue to fall — notwithstanding further supply chain and resource constraints — as a result of not only new technological improvements (such as solid-state batteries), but also from economies of scale. | |||
* The ramp up of EV production should lead to an increase in capacity and new production efficiencies which should further drive down costs | |||
* The introduction of additional entry-segment EV models could further drive down average prices. | |||
* Even taking into account recent geopolitical developments, our conservative estimate suggests EV and ICE vehicles will reach price parity by 2035 | |||
== References == | == References == | ||