According to Crain’s Detroit Business , difficulties are to be expected for suppliers to the automotive sector, since weak sales and the consolidation of the sector create significant conditions for disruption.
The publication notes that the US auto sector lost some 22,000 jobs until May of this year. And it is on the verge of losing more than 30,000 jobs by the end of the year. In 2018, the auto sector lost 30,500 jobs in the United States.
This year, new vehicle sales are expected to be less than 17 million units, a first since 2014.
According to Crain’s , the consolidation trend continues.
Global supplier merger and acquisition activity reaching record highs, according to PwC 2019 study, published last week at management information seminars hosted by the Center for Automotive Research in Traverse City, in the state of Michigan.
The value of global transactions with automotive suppliers is expected to reach $ 44 billion in 2019, which is well above the average of $ 20 billion.