Viewpoints on key issues for the automotive industry - Ernst & Young - United States

From identifying risks and opportunities to understanding the current investment trends, we invite you to select from the individual articles below to gain insights into the most top-of-mind issues shaping the automotive industry:

Tactics for monitoring companies further down in the supply chain
In these trying times, monitoring companies further down in the supply chain is essential, particularly those not directed by the original equipment manufacturers (OEMs). Have you considered implementing some form of data collection procedures for mission-critical suppliers? If one of your suppliers is in crisis, will you be prepared? Learn which procedures we recommend to assess their financial health on a predictive and proactive basis (pdf, 107kb).

The Russian automotive market outlook
Despite Russia’s new-car market growing at an average annual rate of 20% over the past five years, it still couldn’t escape the global economic downturn. Now analysts expect new-car sales to drop approximately 50% below year-ago volumes. When will its economy improve? Read our insights for a view on the future of this major market (pdf, 88.7kb) .

France’s support of the auto industry 
When car sales in Europe began to drop, vehicle manufacturers cut output by 40%. Consequently, vehicle production in France declined sharply. Since then production has returned to levels in line with car sales. But, in order to demonstrate its intent on maintaining employment in France and deal with the global slowdown, the government has established some long-term actions (pdf, 141kb). Learn more.

The auto industry undergoes spreadsheet risk 
Is your organization contending with spreadsheet risk? Out-of-period adjustments, accounting blunders and privacy leaks are just some of the dangers that result from inadequately controlled use of spreadsheets. How can companies proactively mitigate their risks? Dan Smith, Advisory Services Partner in Detroit, explains how to manage spreadsheet risk and outlines the most important risk factors that should help guide a company’s decisions and policies (pdf, 191kb).

European auto industry suppliers at risk
The sharp slump in vehicle sales across Europe is having a double impact on auto industry suppliers, which can account for approximately half of a vehicle’s value. While auto manufacturers are reducing production in an attempt to bring inventories back into balance, suppliers are struggling with conditions much more severe (pdf, 75K). How can suppliers survive? Eric Wallbank, our European Automotive Director, reveals five very useful tips.

A holistic approach to cost control in the automotive industry
The need for effective cost control has never been stronger in the US automotive industry (pdf, 164K). While many companies are aggressively pursuing obvious cuts, few are taking a holistic view. That’s why we created a highly relevant service, Enterprise Cost Reduction, to help companies create programs that drive cost efficiency across the organization. Learn more about it and discover which steps can benefit your company now.