How to navigate the turbulent waters of the automotive crisis

The current crisis is a threat for the automotive industry and offers attractive opportunities at the same time ‑ Act now!

• The significant downturn in the global economy affects both developed and emerging markets
• The automotive industry was already in a difficult situation (structural crisis, overcapacities, technology leaps), and thus is hit even faster and harder by the current crisis now
• Concerning the impact of the crisis, we have identifierd three possible scenarions - recovery, recession, depression (p.7)
• A sustainable economic recovery is not expected in the short run

• Create awareness of the current crisis within the management and outline potential scenarios
• Revise planning for 2009 and beyond according to the scenarios, and test all business plan assumptions for validity
• Define a comprehensive action plan: short-term actions to secure results and mid-term actions to proactively utilize growth opportunities
• Establish common understanding of the situation within your management team, define clear roles & responsibilities and react as flexible as possible