The forced transformation of the automotive industry – Mazars analysis

Mon | 18.05.2020

Accounting/audit/tax

Organizational resilience overview

As the spread of COVID-19 continues around the world, many businesses are looking for ways to move forward and keep their customers happy and their people productive. In response to this, many organizations manage their operations in a constantly changing environment with the need to prepare and plan for a wide range of strategic and operational risks and respond quickly to crises.

 

Building resilience is more important than long-term planning and it is essential for all companies, regardless of their size or shape; a framework similar to the one above gives you the helicopter perspective of how your company is ready or not for its future journey.

 

Read more info HERE

 

The forced transformation of the automotive industry – Mazars analysis

According to Mazars, the Romanian automotive industry, with ~600 companies and ~230,000 employees, represents a significant part of the economy and it is recognized as a stable source of earnings for almost a quarter of a million Romanians.

COVID-19 impacted the entire automotive world, leading to factory closures, supply chain disruption, and a collapse in demand.

Stopping the national and international car production led also to an almost full stop of the local car components production – being perceived for the moment as the most affected industry in Romania. Among the car component players, Faurecia Romania decided to make a meaningful contribution by synergizing their efforts with the local medical and social services: they started producing protection masks in Romania.

It may take years for the global automotive industry to return to pre-crisis volumes. While a smaller decline in sales compared to the previous year is expected in the second half of 2020, the industry could undergo far-reaching changes.

Read more info HERE

 

Developing a winning strategy through this crisis and its aftermath

In the current abnormal business conditions, smart companies must be predictive and proactive in their decision-making processes to maintain business continuity and build enterprise resilience.

Mazars experts recommend incorporating the following suggestions into a strategic plan to grow your business and your productivity:

1.     Put people safety first;

2.     Communicate with your employees as you do with your friends and family;

3.     Be prepared for changes in customer behavior;

4.     Focus on cash;

5.     Prepare a stand-by cost-cutting strategy;

6.     Look for financial assistance programs;

7.     Plan for recovery now, not later.

 

By using some of the suggestions listed above, your next steps should be:

  • To understand your current financial and strategic positions;
  • To prepare an initial adapted financial plan including cash flow considerations;
  • To agree on the relevant next steps and communicate them properly.

 

Read more info HERE

We also recommend

NRCC Member in Spotlight - ...

18.01.2019

The Retail Industry

24.05.2020

Luxury Goods

12.06.2020

2021

2020