In our latest report focused on the operating profits of major automotive suppliers, a general trend emerges of margins under stress, with most companies on a downward trajectory.

However, those suppliers with better performing margins are often those producing more dynamic, specialised technologies, for example in advanced electronics or driver assistance systems, rather than those focused on highly commoditised products, such as seats or mechanical engine parts.

We expect that this divergence in financial performance is likely to continue as vehicles take on more sensors, electronics and software. If suppliers are to protect their profit margins, they will need to offer more than products available at the lowest bid.

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