Automotive Industry Trends Sweden - 2021

市场监测

  • 瑞典
  • 自动化/交通

2021年11月29日

Ongoing production delays could impact margins of automotive suppliers

 

IT Sweden automotive Credit Risk

After contracting 23.8% in 2020, Swedish motor vehicles output is forecast to rebound by only 8% in 2021. Original Equipment Manufacturers (OEMs) have been forced to curb production due to a shortage of semiconductors and other components. After a sharp increase in H1 of 2021, new car registrations declined 21% year-on-year in September, due a supply shortage of new cars. 

IT Sweden automotive output

OEMs have started to prioritise production of higher-margin models in order to sustain profitability. While margins of OEMs and suppliers are not expected to decrease sharply in Q4 of 2021, ongoing production delays in 2022 would subsequently squeeze the margins of suppliers. Another issue is exchange rate volatility, as the sector is highly export-dependent. Costs are usually incurred in Swedish krona, and the recent appreciation against the Euro could hurt international competitiveness.  

Swedish automotive businesses are not highly leveraged, while the current low interest rate environment facilitates debt servicing. Depending on the level in the supply chain, payment duration in the automotive sector ranges from 30 to 90 days. Automotive insolvencies are expected to increase by about 10% in the coming twelve months, as fiscal support will be phased out. The increase will mainly affect smaller suppliers that were ‘saved’ from bankruptcy in 2020 and in H1 of 2021 by corona-related government support. In addition, smaller businesses could face liquidity issues in Q2 of 2022, when payment of deferred taxes will become due. Downside risks for the insolvency development in 2022 are a prolonged shortage of materials like semiconductors and ongoing supply chain bottlenecks, as well as another surge of the pandemic. Despite the downside risks our sector outlook remains “Fair” for the time being.

As the majority of Swedish suppliers is active in the commercial vehicle segment (trucks and buses), the pressure to swiftly convert to e-mobility is lower than in the passenger cars segment, providing those suppliers with more time to adapt and to transform their businesses.

免责声明

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.