Automotive InSIGHTS Special 4/2006 Automotive Competence Center customer magazine

Leading automotive suppliers expect another tough year

Leading automotive suppliers expect 2006 to be even
tougher than 2005, according to a survey by Roland
Berger Strategy Consultants and SupplierBusiness,
which incorporated the opinions of 100 senior executives
in the global automotive supplier industry.

2005 was a tough year for the supplier industry, particularly
in North America, with major industry players such as Delphi
going into chapter 11 administration – a major challenge in
itself for some of the respondents. Seventy percent of the
suppliers surveyed expect the number of first-tier supplier
bankruptcies to increase further in 2006.

The survey, conducted in late December 2005, found that
supplier executives expect the pricing environment for
automotive components to be even tougher in 2006 than
it was in 2005 – and think that market volumes in Europe, North America and Asia will be more challenging. Most predict
that production volumes in North America and Europe will be
difficult for suppliers, and a growing number, albeit still less
than a quarter of all suppliers, are worried about the volume
outlook for Asia.

Read more about the analysis of the supplier business in the InSIGHTS Special.