The global automotive industry and enhanced regulations: a very steep path ahead.
Hit by increasingly stringent regulations, particularly for environmental purposes, the global automotive industry is facing a downturn and is being forced to reinvent itself.
In a gloomy global economic context, the automotive sector faces several very specific challenges, including stronger and stricter environmental regulations. As a result, car sales are experiencing negative growth not seen since the Great Recession of 2008 and there is an uncertainty prevail in the sector.
Naturally, the growth and revenues of automotive suppliers are severely impacted by this slowdown. The rationalization of production costs and technological developments linked to the environmental constraints imposed on car manufacturers subsequently have repercussions on the entire supply chain. This is particularly true for R&D expenditure. This may lead to mergers and acquisitions in order to rationalize these costs, which are necessary to bring decisive technologies to market – again leading to a redesign of the automotive industry landscape.
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