Suppliers in the automotive industry often have fixed-price requirement contracts. With the onset of COVID, manufacturing costs for parts and components increased substantially due to the rise in energy, transportation, labor, and raw material prices, putting the financial squeeze on suppliers and leading them to seek relief from the original equipment manufacturers (OEMs) in either negotiated pricing or cash infusions.

On the other hand, OEMs were able to ride out supply shortages as they had a richer product mix and were able to raise prices and focus production on the highest-margin models. Challenges will still exist in 2023, but opportunities lie in the transition to electronic vehicles (EVs), the development of self-driving cars, and increasing demand for connectivity and other features.

This report features automotive supplier headline transactions, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITA) margins, revenue growth, and more.

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For more information, please reach out to project leads Kathleen Lauster, CFA, and Matthew Lapish

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