While the race to rebuild the automotive industry is still underway, significant industry-wide challenges continue to obstruct efforts to reach pre-pandemic numbers. Due to Seraph’s expanding presence in Europe, we have incorporated the region into our industry surveys and research.
Since Seraph’s Q2 Report, the automotive industry and the world at large have faced unexpected disruptions. Events like the UAW strike and the Israel-Hamas war serve as reminders of how circumstances and risks can suddenly change. The impacts of these events, and others yet to come, will continue to grow requiring careful monitoring.
At the same time, the overall picture has remained relatively steady. Interest rates, inflation levels, employment and consumer spending have all stayed relatively flat. The slow-moving trends we’ve been seeing are continuing, including a decline in enthusiasm for electric vehicles (from both consumers and governments), the ongoing growth of Chinese automakers, persistent manufacturing labor shortages, and the rise of increasingly protectionist trade policies. Thus, while the fundamentals of this era are remarkably different than just a few years ago, we may be witnessing a new normal. This new normal is defined by flat volumes, increased uncertainty in program launches and volumes, as well as reduced supplier payment terms and increased bankruptcies.
We look forward to delving deeper into these topics in the following report and are available for direct discussions.
Seraph is pleased to share the first webinar of our quarterly industry report—an insightful discussion about the prevailing trends shaping the automotive sector. During this webinar, Seraph’s Presidents for North America and Europe will provide an outline of the report, accompanied by engaging interactions with fellow leaders who participated in the discussion.