WEBVTT

1
00:00:04.462 --> 00:00:07.340
- We are in a perfect storm
for automotive suppliers.

2
00:00:07.340 --> 00:00:10.093
An economic downturn will
dampen demand.

3
00:00:10.093 --> 00:00:12.762
Labor and material prices
are going up,

4
00:00:12.762 --> 00:00:14.305
so are financing costs.

5
00:00:14.305 --> 00:00:16.933
And amid all this, auto
suppliers must continue

6
00:00:16.933 --> 00:00:18.935
to transform their business to address

7
00:00:18.935 --> 00:00:22.272
the seismic industry shift from
internal combustion engines

8
00:00:22.272 --> 00:00:23.648
to electric vehicles.

9
00:00:23.648 --> 00:00:27.027
These companies need to move
on two fronts right now.

10
00:00:27.027 --> 00:00:30.697
First, they should focus on
preserving their profitability

11
00:00:30.697 --> 00:00:32.240
over the next couple of quarters

12
00:00:32.240 --> 00:00:35.535
by taking steps that
include conserving cash,

13
00:00:35.535 --> 00:00:37.620
cutting discretionary spending,

14
00:00:37.620 --> 00:00:39.622
and reducing energy consumptions.

15
00:00:39.622 --> 00:00:43.168
In some cases, they can also
work with their OEM customers

16
00:00:43.168 --> 00:00:45.170
to ensure rising costs are shared.

17
00:00:45.170 --> 00:00:48.298
Second, they should make
strategic moves

18
00:00:48.298 --> 00:00:52.052
that will set up the
business for success in 2023.

19
00:00:52.052 --> 00:00:54.929
They can start by evaluating
the likely volatility

20
00:00:54.929 --> 00:00:58.516
of the market and their own
overall financial stability.

21
00:00:58.516 --> 00:01:02.437
That insight will help companies
to identify the actions

22
00:01:02.437 --> 00:01:05.482
they need to take to protect margins,

23
00:01:05.482 --> 00:01:08.276
adjust pricing, or overhaul procurement.

24
00:01:08.276 --> 00:01:10.528
Companies can weather the storm,

25
00:01:10.528 --> 00:01:12.030
but only if they move quickly.