Automotive suppliers all over Europe have to cut jobs, close plants and – in the worst case – they go broke. Due to the Corona pandemic, there is hardly a week without bad news from the industry – money is scarce.
The evaluation of the data of FCF shows: Of 35 suppliers with sales of less than five billion euros, 23 have either reached a critical level of debt or ab alarmingly low equity ratio.
Arno Fuchs is convinced that the current figures for the second quarter will be the litmus test for the industry. He told the Handelsblatt newspaper “They will show how strongly the Corona crisis has affected companies’ cash flow, cash holdings and debt sustainability. Then it should become clear which suppliers are in serious trouble and which are not, if conditions remain difficult”.