In this episode, Akshi Goel, EY Global Advanced Manufacturing & Mobility Analyst, shares her insights about the key themes discussed by mobility sector leaders during the second quarter earnings calls.
The COVID-19 pandemic quickly became a global threat in the first quarter of 2020 and mobility companies found themselves facing complex decisions, as several production sites worldwide closed down and supply chains were disrupted. There were no surprises in the second quarter as well. Mobility companies are in a dire situation as the crisis has intensified supply chain issues in an already complex ecosystem.
Key takeaways:
- Operating costs: targets for cost management programs were increased by many companies. The crisis has led to widespread cost-restructuring programs and austerity measures, including layoffs and furloughs.
- Financial initiatives: mobility companies are working on their capital management strategies to secure financial stability. Also, discretionary spending and capital expenditures are delayed or suspended, and companies are actively using credit and debt financing strategies to achieve a strong liquidity position.
- Product and service innovation: original equipment manufacturers (OEMs) are struggling to support their internal combustion engine legacy businesses, and simultaneously investing in the transition to electric vehicles.
