Auto Suppliers Bloodied, But Not Beaten “We didn’t see the bankruptcies and restructuring that we expected,” says Kensington Capital’s Justin Mirro at a Society of Automotive Analysts event.
It’s been rough, but automotive suppliers – arguably the lifeblood of the industry – have weathered the COVID-19-related economic crisis fairly well, certainly compared with the battered shape they were in during last decade’s ravaging recession.
That doesn’t mean all is expected to be rosy going forward. Some balance sheets are out of whack. And strong suppliers are expected to gobble up weaker ones in expected consolidations. But overall, suppliers are faring better than many people had feared.