WEBVTT

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Thomas, thank you so much for
being here.

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Talk to me about the challenges
and opportunities facing auto

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suppliers today.

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Being an auto supplier today is
incredibly challenging, but it's

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also a super fascinating space.

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There are so many technology
shifts with electrification,

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software, defined vehicles,
connectivity, sustainability.

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So lots of things are changing
and this also leads to a

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reshuffling of value pools where
every supplier needs to find the

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best way forward to redefine
portfolio and business models.

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What are the priorities for
leaders especially in this cost

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constrained environment?

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Yes, and that cost containers is
a good keyword.

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I mean we are in a situation
where vehicles have become quite

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expensive and affordability is
one of the big topics of the

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industry.

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So there is a lot of cost
pressure.

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Margins are constrained.

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They have not gone back to pre
COVID levels.

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Cash is constrained.

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So really working on cost
position is a absolute priority

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for all of the suppliers.

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And that means being more
efficient in development, in

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R&D, being faster, being
more frugal, but also working

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the footprint and adapting
capacity to realities.

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But apart from that, obviously
you also need to be strategic to

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a grasp to embrace the opportunities
and there are opportunities.

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The overall market is growing at
2% approximately until 2035.

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But highly de averaged in
batteries is taking a lot of

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this growth.

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Also semiconductors, electronic
software, so new plays in the

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market, but you can find
opportunities everywhere as

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vehicles are getting heavier
with the electrification, for

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example, there's more content in
tyres, there's more content in

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certain structural and chassis
paths, There's more content in glass.

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Even so it's it's a very the
average picture and every supply

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needs to find the right spaces
to scale up and to build out the

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right to win.

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And what about the
market landscape?

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Market landscape is changing
also dramatically.

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There are many new entrants with
batteries and electronics from

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the tech space, from consumer
electronics, for example,

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screens and and also software.

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There are new Chinese,
Indian supply.

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So the entire space gets a bit
more crowded and in a market

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that is growing, but not
excessively growing, really the

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question is focus where and how
to scale.

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And that means new partnerships,
M&A, maybe sell some non

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core businesses, try to
consolidate parts of the business.

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So I I see a lot of reshuffling
of the suppliers for the next

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years to come up.

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And really it's it's a lot about
external growth and working on

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the portfolio.

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Thank you so much.

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Thank you, Lisa.