Auto supplier margins decline to near historic low
Navigating seismic industry change profitably is proving particularly difficult for automotive suppliers at the moment, and margins have dropped to near historic lows. Stagnating vehicle production, increased competition and geopolitical turmoil have pushed the North American and European auto supply segment into what Roland Berger calls, ‘a stage of stagformation’. “On the one hand, suppliers are facing stagnant volume growth, while on the other, they are undergoing a fundamental transformation that requires them to urgently reshape their business models,” explains Felix Mogge, Partner at Roland Berger.
‘Stagformation’ may be limited to Europe and North America, but other regions are also taking a hit from particularly strong headwinds. The 2025 Global Automotive Supplier Study, conducted by Roland Berger and Lazard, analysed 600 automotive suppliers around the world.
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Originally posted on: https://www.automotiveworld.com/articles/auto-supplier-margins-decline-to-near-historic-low/