THE CRISIS OF SUPPLIES TO THE AUTOMOTIVE SECTOR

Wednesday, 1st april 2020 | General News
Marco Arezio - Consulente materie plastiche - The crisis of supplies to the automotive sector

What challenges automakers face to overcome today’s crisis. Is a happy era over?

The auto industry has been one of the most admired and envied entrepreneurial activities since the post-war period, arousing passion, dynamism, freedom and a sense of affirmation in their customers. Among the first truly globalized and globalizing companies. Today, however, things are changing.

Having a car in the 60s was generally a fairly high goal for ordinary people, which gave many a sense of well-being of their family and a social revenge after the dark years of the war.

In the following years the machine took on different symbols : social and class struggle, passion for a brand like a football team, a means of work in transformation, a tool for female emancipation and a means for youth independence.

For each period of our life, the automotive industry, more than others, has been able to interpret the social needs , expectations and dreams of its customers, becoming a global company, with a growth in sales at a rate such as to financially support the continuous evolutions of the sector.

In recent times many clouds have thickened over this industry , due to strong changes that could undermine the stability of the automotive giants. Let’s see some:

  •  The increasingly stringent anti-pollution regulations that led automotive causes to begin the conversion of thermal engines to electric ones, making huge investments in research, structures and acquisitions of companies included in the electrification chain.
  •  The digitalization of driving systems has triggered fierce competition within the auto system, which has required huge financial resources. In addition, new indirect competitors have appeared on the market, which are developing assisted driving systems, whose companies see the car only as a means of conveying their products.
  •  Car sharing is significantly reducing customer purchase requests, especially in large cities, where car sharing is a system that allows you to optimize costs and time of use of the vehicle.
  •  The distortion of the concept of car ownership, as a personal and social value, especially among young people, who do not see ownership as an important element in which to invest money.
  •  The recent Coronavirus epidemic crisis that imposed a globalized stop on the automotive industries and a consequent reduction in international demand.
  •  The confusion from a regulatory point of view on power supplies (petrol or diesel), in relation to anti-pollution measures and possible tax exemptions, has created an atmosphere of uncertainty among users.

In the face of all this, the automotive industries are rethinking their future scenario by questioning some previous forecasts.

Strict compliance with the environmental regulations imposed by many states, not least Europe, had imposed a rapid transition to the electric car , which today is seriously questioned due to a decidedly declining market, which does not allow to generate revenue in line with planned investments.

Therefore, postponing the completion of projects related to electric mobility , which had placed car manufacturers in front of onerous but ambitious choices, is putting a strain on not only the primary sector, but also the related sector, consisting of the supplies of raw materials, the spare parts, plant engineering, logistics, distribution, financial structures, engineering.

Furthermore, there could be a contraction in the workforce of the evaluable sector, according to ACEA , which represents the association of European manufacturers , in 14 million units in Europe.

A social problem before an industrial one.

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