European Auto Suppliers Brace for Losses This Year

A quarter of Europe’s automotive suppliers expects to post losses this year, underscoring the growing strain on a sector squeezed by rising costs and deep structural change.

Some 24% of suppliers forecast a deficit, up from 15% in the previous edition of the biannual survey, industry body CLEPA said Monday. More broadly, 76% expect margins below 5% — a level widely seen as insufficient to sustain investment in new technologies and production capacity.