The global automotive components manufacturing giants are confronting unprecedented challenges amidst the rapid transformation of the international automotive industry. According to the latest figures from consultancy Falkensteg, 20 German automotive components suppliers with annual revenues exceeding €10 million filed for bankruptcy in the first half of 2024, a staggering 60% increase year-on-year. This trend is intimately linked to the evolution of the global automotive industry towards NEVs and the rapid development of new technologies.
Furthermore, Valeo, a prominent player in the automotive components industry, has announced the sale of two manufacturing plants and a research and development center to address the global market’s dwindling demand and overcapacity in the components sector. Valeo cites the shrinking business and visible decline in market demand as compelling reasons for this strategic move. This announcement has sparked widespread discussions within the industry.
Analysts note that the rapidly evolving global automotive market landscape is forcing major automakers to grapple with cost escalations and supply chain disruptions, particularly in the face of fierce competition from China’s supply chain. Chinese enterprises are leveraging their manufacturing prowess and cost advantages to gradually expand their international market share.
Post time: Aug-14-2024
