The impact of COVID-19 shuttered manufacturing in the auto industry in unprecedented ways. Now, as automakers and suppliers have restarted the assembly plants and supply chain, the industry grapples with ways to respond to the operational and financial challenges.  Further, companies need to gauge near and medium term demands for new vehicles.

Suppliers face liquidity constraints, as they’ve exhausted availability on their borrowing base and begin to draw on any available reserves to purchase raw material and activate the workforce. The industry will experience inefficiencies and incremental costs to disinfect work areas and to meet new health protocols. All this, following the first severe decline in sales and production in over 10 years, could put the intricately linked industry under severe stress.

In this article published in late 2019 in the AIRA Journal, A&M’s Brendan Joyce describes what he predicted as the expected slowdown, even before the global crisis brought everything to a halt. It offers thoughtful steps and a playbook for suppliers who need to realign their business in times of distress.

Click here to read the full PDF of the article, with particular focus on Brendan’s guidance for suppliers on pages 23 – 28. 

This article was originally published in AIRA Journal. Copyright © 2019 Association of Insolvency & Restructuring Advisors. Click here to read the full issue.