(Finance) – I margins of European suppliers in the automotive sector they will be under pressure in the coming months due to rising inflation, gas shortages and supply chain disruptions. After-market exposure, pass-through cost mechanisms and realistic contingency plans for gas supply or replacement will be key to preserve the profitability of companies in the sector. new report by Fitch Ratings on the topic.
Suppliers with high exposure to OEMs (original equipment manufacturers, i.e. those who produce systems or components that will be used in another company’s final product), limited diversification and lack of raw material transmission mechanisms are the most affected. . Conversely, suppliers with a wider presence in the after-sales market or in the industrial sector they are more resilient to inflationary pressures as they are able to pass cost increases almost completely to customers with limited delays.
The rating agency believes that i tire manufacturers with a high exposure to the aftermarket such as Michelin And Pirelli, large and well-diversified suppliers such as Robert Bosch and, to a lesser extent, medium-sized suppliers with exposure to spare parts and industrial activities such as Schaefflerare in a better position to address the challenges of the sector with less marginal erosion.