Suppliers demand cost sharing with manufacturers

Paint shop at Porsche

Unlike suppliers, automakers recently announced record margins.

(Picture: Porsche AG/Marco Prosch)

Dusseldorf, Stuttgart In the automotive industry, the distribution battle between suppliers and manufacturers has further intensified. Suppliers have tried to pass on some of their dramatically increased costs to automakers, but have met with resistance, the Handelsblatt has learned from many industry players.

Rising energy prices, additional logistics costs and inflation are putting increasing pressure on automotive suppliers. Continental had to cash in on its profit target. Costs are also piling up at Bosch, ZF and Mahle. The situation is even more critical for medium-sized suppliers. According to procurement strategy consultancy HZ Group, these alone could lead to additional costs of up to 228 billion euros.

Early suppliers have recently stepped up their efforts to defend themselves through negotiations, including Bosch, Conti and Mahle. According to CFO Katja Dürrfeld, Conti is in “partnership talks” with automakers.

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