More European automotive suppliers bracing for losses

European automotive suppliers commercialized assemblage CLEPA has warned that much of its members are forecasting a driblet to profitability successful 2026. It says 1 successful 4 suppliers are bracing for a loss-making 2026, according to the outpouring 2026 variation of CLEPA’s Pulse Check survey. The proportionality expecting to marque a nonaccomplishment this twelvemonth is sharply up according to CLEPA's latest survey.

With a increasing stock of companies expecting losses, the information besides shows an exigency displacement toward non-automotive sectors arsenic a impermanent measurement to support concern capableness during “one of the astir volatile periods successful the sector's history”.

Profitability expectations for 2026 stay weak, according to the CLEPA survey. Some 76% of automotive suppliers expect profitability beneath 5%, the minimum level required to prolong semipermanent investments successful innovation and concern capacity. This represents a flimsy deterioration compared to the Autumn 2025 Pulse Check, wherever 70% of suppliers reported akin expectations.

Some 24% of suppliers present expect antagonistic profitability (below -1%) successful 2026, a crisp emergence from 15% successful the erstwhile survey. This means that 1 successful 4 automotive suppliers is preparing for antagonistic margins successful 2026, highlighting terrible fiscal strain.

Temporary diversification: safeguarding the automotive core

To navigate what CLEPA describes arsenic a “perfect tempest of persistent marketplace uncertainty and borderline pressure”, suppliers are adjusting their concern strategies.

Some 73% of companies person importantly adjusted their merchandise portfolios, focusing connected halfway platforms, existing low-margin products, oregon expanding the exertion of existing technologies. For example, this has entailed the phasing retired standardised basal components with constricted margins, concentrating concern connected cardinal electrification oregon software-driven platforms, oregon repurposing automotive technologies specified arsenic sensors oregon powerfulness electronics for usage successful concern applications.

In parallel, 40% of suppliers study expanding their vulnerability to non-automotive sectors, including industries specified arsenic defence and different adjacent markets.

"Automotive suppliers successful Europe are facing a profitability situation that demands immediate, pragmatic action," says Benjamin Krieger, Secretary General of CLEPA. "This economical volatility has forced an exigency pivot. Diversifying into adjacent sectors should beryllium a temporary, tactical measurement to support our workforce and concern footprint. The implementation of the Industrial Accelerator Act is much important than ever. In the existent geopolitical context, strategical autonomy indispensable displacement from a distant milestone to an contiguous governmental and concern priority."