Crisis as a Catalyst for Change
How Pulling Back on Innovation Investments During Crisis Robs Suppliers of Long-Term Financial Performance
September 28, 2020
Crisis as a Catalyst for ChangeDownload Article
This is the second article, in a three-part series, created by the FTI Consulting Automotive Team, in conjunction with The Automotive News Data Center. The three-part article series will be followed by the release of comprehensive Auto Industry Perspective.
This is an extract from Automotive News, first published September 28, 2020. The whole publication is available at https://www.autonews.com/sponsored/crisis-catalyst-change-how-pulling-back-innovation-investments-during-crisis-robs
"For nearly a decade after the 2008-09 recession, the global automotive industry enjoyed sustained sales growth, plateauing at about 91 million units in both 2017 and 2018. Performance had been driven by economic growth and consumer confidence as well as product and process innovation.
Still, not all automotive suppliers had enjoyed consistent performance, based on an analysis by FTI Consulting (FTI) of more than 400 companies’ revenue and growth in earnings before interest, taxes, depreciation and amortization (EBITDA) from 2010 to 2019. According to FTI’s analysis, the companies fell into four categories: Performers, above-average revenue and EBITDA growth; Defenders, above-average EBITDA growth."
Posted with permission from Automotive News. Copyright 2020 + Automotive News