DETROIT, Sept. 26, 2023 /PRNewswire/ -- Kevin A. Krakora, Managing Director and Automotive Practice Leader at Getzler Henrich & Associates LLC, one of the nation's oldest and most respected middle-market corporate restructuring and operations improvement firms, is featured as a guest expert in the current issue of Automotive News. https://www.autonews.com/sponsored/insights-automotive-turnaround-expert
In addressing how Tier 1 and Tier 2 suppliers are performing in today's market, Mr. Krakora said, "Most suppliers are 'hanging in there.' The top-performing companies have operational costs under control and are doing their best to anticipate and react to the more uncontrollable aspects of their businesses.
"The OEMs are currently more selective with the suppliers they will support in difficult times," added Mr. Krakora, "OEMs are willing to entertain strategic price increases only if the supplier has a well-supported rationale and if they are comfortable with the production and delivery of a specific supplier. If the OEMs believe that the financial situation is caused by more serious, fundamental operational issues, then they may be inclined to resource and shift to a more stable alternative supplier."
While labor issues are dominating the current headlines, there are other top-of-mind issues in the industry. Mr. Krakora explained, "There is concern about vehicle sales and changing consumer demand. Vehicle prices remain relatively high due to the economic pressures on the manufacturers, such as commodity costs, shipping, and transportation, and general inflationary increases on all inputs into parts and services. In addition, rising interest rates and consumer financial uncertainty make it increasingly difficult for buyers to finance new vehicles; so, we expect a softened demand in the near term. Production overall appears to have remained stable, which indicates that there will likely be increased pressure to lower vehicle prices to move inventories."
As head of Getzler Henrich's Automotive Practice Automotive, Kevin Krakora advises boards of directors and executive management teams regarding strategic alternatives and performance improvement plans. He has served as a Chief Restructuring Officer and Independent Director and has led numerous Section 363 sales processes in Chapter 11 cases as well as business and assets sales in out-of-court situations.
As the 2019 Global Chair of the Turnaround Management Association®, Kevin Krakora, CTP, will be among the past TMA Chairs being recognized at the 2023 TMA Annual Conference in San Francisco, October 3 – 5, 2023.
ABOUT GETZLER HENRICH & ASSOCIATES LLC: Getzler Henrich & Associates LLC, a Hilco Global Company (www.hilcoglobal.com), is one of the nation's oldest and most respected names in middle-market corporate restructuring and operations improvement and has successfully worked with thousands of companies to achieve growth and profitability. Working with a wide range of companies, including publicly held firms, private corporations, and family-owned businesses, Getzler Henrich's expertise spans more than fifty industry sectors, from "new economy" technology and service firms to "old economy" manufacturing and distribution businesses. For more information on Getzler Henrich's expertise, please visit: getzlerhenrich.com.
SOURCE Getzler Henrich & Associates