22nd April, 2020
The automotive industry has been one of the main drivers of economic growth over the past 100 years but without a rethink of business fundamentals and massive investment, many of today’s car brands may be gone within three decades.
They are being battered in one direction by a storm of climate activism forcing the rapid development of cleaner electric vehicles and, in the other, by technology giants pouring resources into the development of self-driving cars that are effectively smartphones on wheels.
Many manufacturers were staggering before the coronavirus (Covid-19) outbreak but when it became a global pandemic, the industry had to deal with factories being shuttered, workers furloughed and sales reduced to a trickle.
“There was a perfect storm for established automotive brands brewing and their complex supply chains – and then came Covid-19,” says Simon Kessler, global head of mobility and automotive at Greensill.
As the world waits for the epidemic to abate, ensuring financial stability and liquidity is a top priority for automakers.
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