Faced with a decline in the car market, equipment manufacturers are forced to reduce their prices

2024-08-21 16:02:44

Faced with low sales, manufacturers are demanding further price reductions from their suppliers.

Weak car sales in North America, Europe and even China have boosted manufacturers’ stocks in recent months. Enough to trigger warnings. Many stocks show an excess of supply compared to demand and announce bad news for manufacturers: price reductions and a fall in profits. This trend also hardens the relationships between car manufacturers and suppliers.

Especially in Stellantis, whose reputation as an impartial order giver is well established. From now on, Carlos Tavares, boss of the group, predicts casualties among suppliers. « The transition to electric vehicles is the result of severe cost cutting, and auto manufacturers must find a way to adapt or they risk extinction in the next five to ten years. », he warned at the end of May in New York, then in mid-May in Detroit, in front of financial analysts…