Top Considerations For Dealing With Financially Distressed Suppliers

The COVID-19 pandemic has created financial and operational distress for certain automotive suppliers, who will struggle to return to stability following what for many was a nearly 3-month shutdown. As automotive suppliers know all too well, one weak link can shut down assembly lines and wreak havoc on the global supply chain. It is now more important than ever for automotive suppliers to review their own supply base to determine whether financial or operational distress threatens the continued supply of goods. Supply chain stress tests – not unlike the financial stress tests which banks have been subjected to since the Great Recession – are a good place to start, as certain automotive suppliers struggle to deliver now that the industry is once again running.