Restructuring in the automotive sector
The coronavirus pandemic has accelerated a number of existing trends in the UK automotive sector, while also exposing the vulnerabilities of many supply chain firms. In the short term, accessing working capital may be challenging for many suppliers as they move to increase production after lockdown. In the longer term, the automotive industry is transforming into a greener and more sustainable sector and many well-established businesses face a challenge in ensuring they can compete in this new landscape. Suppliers need to take a realistic view of their operations. If they can’t make the capital investment needed to stay competitive, their financial position may become unsustainable. But those firms who proactively engage with customers and lenders will find themselves in a stronger position.
For businesses to remain in control and ensure a sustainable future in this
There are a number of specific challenges when dealing with the sector, which can make them more complex to successfully restructure. rapidly transforming sector, it is vital to manage cashflow, scenario pl n and ngage with k y stake olders. Tony Barrell Restructuring Advisory
Phil Reynolds Restructuring Advisory
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