Crisis as a Catalyst – Why automotive suppliers must reposition themselves now

Daniel Niederberger
Managing Director, MBA TUM | MSc. Frankfurt School

Automotive suppliers find themselves in a defensive position due to an ongoing and intensifying transformation. In addition to well-known technological shifts, such as electric powertrains, Software-Defined Vehicles (SDV) and new E/E architectures, market-driven and legislative changes are further increasing the pressure. New competitors, particularly from China and the USA, are entering the market with different approaches, often favoring more partnership-oriented collaboration models than traditional OEMs.

Tightening regulations (emissions, labor rights, supply chains) bring additional challenges. These developments are reflected in declining company KPIs, reduced innovation willingness, and in some cases, even disinvestment. The increasing activity in private equity and M&A further underlines this trend. Family-owned businesses are also considering downsizing or relocating individual production sites.