《Atradius：2021年全球汽車行業趨勢報告-聚焦行業業務表現和信用風險（英文版）（18頁）.pdf》由會員分享，可在線閱讀，更多相關《Atradius：2021年全球汽車行業趨勢報告-聚焦行業業務表現和信用風險（英文版）（18頁）.pdf（18頁珍藏版）》請在三個皮匠報告上搜索。

1、December 2021Industry Trends AutomotiveFocus on sector business performance and credit risk Automotive industry performance per market .3Introduction Global automotive-performance at a glance .4Brazil Economic uncertainty hinders external financing for businesses .5 China Long payment periods put pr

2、essure on smaller suppliers .6 Czech Republic A sharp increase in insolvencies expected .7 France Cash flow and margins of many suppliers under pressure .8 Germany Sector assessment downgrade as suppliers face major issues .9 Italy Shift to e-mobility is a major challenge for many suppliers .10 Japa

3、n Stable credit risk for the time being,but downside risks remain .11 Mexico Recovery of businesses margins and cash flow has slowed down .12 South Korea Increased credit risk for highly leveraged suppliers .13 Spain Ongoing issues,but a strong rebound expected in 2022 .14 Sweden Ongoing production

4、delays could impact margins of suppliers .15 United Kingdom Credit risk situation of suppliers about to deteriorate .16 United States Supply chain pressures,but higher sales prices sustain margins .17 DisclaimerThis report is provided for information purposes only and is not intended as investment a

5、dvice,legal advice or as a recommendation as to particular transactions,investments or strategies to any reader.Readers must make their own independent decisions,commer-cial or otherwise,regarding the information provided.While we have made every attempt to ensure that the information contained in t

6、his report has been obtained from reliable sources,Atradius is not responsible for any errors or omissions,or for the results obtained from the use of this information.All information in this report is provided as is,with no guarantee of completeness,accuracy,timeliness or of the results obtained fr

7、om its use,and without warranty of any kind,express or implied.In no event will Atradius,its related partnerships or corporations,or the partners,agents or employees thereof,be liable to you or anyone else for any decision made or action taken in reliance on the information in this report or for any

8、 consequential,special or similar damages,even if advised of the possibil-ity of such damages.Copyright Atradius N.V.2021In this issue.On the following pages we indicate the general outlook for each sector featured using these symbols:Automotive industry performance per market December 2021AustriaRu

9、ssiaAustraliaBelgiumSlovakiaChinaCzech RepublicSpainHong KongDenmarkSwedenIndiaFranceSwitzerlandIndonesiaGermanyTurkeyJapanHungaryUnited KingdomNew ZealandIrelandSingaporeItalyBrazilSouth KoreaNetherlandsCanadaTaiwanPolandMexicoThailandPortugalUSAUnited Arab EmiratesExcellent The credit risk situati

10、on in the sector is strong/business performance in the sector is strong compared to its long-term trendPoor The credit risk in the sector is relatively high/business perfor-mance in the sector is below its long-term trendGood The credit risk situation in the sector is benign/business performance in

11、the sector is above its long-term trendBleak The credit risk in the sector is poor/business performance in the sector is weak compared to its long-term trendFair The credit risk situation in the sector is average/business performance in the sector is stableGlobal automotive performance at a glance G

12、lobal pent-up demand for new cars,after sales deteriorated sharply in 2020 due to the pandemic.Government schemes support the recovery,also backing the transition to lower emission vehicles and to e-mobility in many markets.Robust growth outlook for hybrid and electric vehicles.Their share of global

13、 vehicle sales is expected to increase from 12%in 2020 to 17%in 2021,and to 49%in 2030.Low vehicle density and a growing mid-dle-class provide ample room for catch-up growth in many emerging markets.Automotive growth drivers Global automotive Prolonged semiconductor shortages and/or another surge of

14、 the coronavirus pandemic could delay vehicle production recovery in 2022,deteriorating the credit risk situation of many suppliers.Complex global supply chains remain susceptible to disruptions triggered by protectionism and geopolitical risks (e.g the Sino-US trade conflict).The shift to e-mobilit

15、y poses a major challenge for the bulk of small-and medium-sized suppliers.Many could lack the techno-logical and/or financial means to climb up the value chain,forced to leave the market in the coming years.In the ongoing race for innovation(e.g.connected and autonomous driving),established automot

16、ive businesses face increasing competition from large techno-logy companies and start-ups.Automotive constraints Motor vehicles&parts Motor vehicles Bodies&partsSource:Oxford Economics-2010-10020*forecast20202021*2022*2023*Global automotive outputSemiconductor shortage avoids a strong recovery in 20

17、21y-on-y,%change-12.3-17.9-7.3 10.67.812.88.611.26.63.4 3.93.0Automotive output per region2021 rebound in Europe lags behind other regionsSource:Oxford Economics-2010-1002020202021*2022*2023*Americas Asia-Pacific Europe5.013.211.50.44.44.7*forecasty-on-y,%change-15.6-6.2-20.9 13.010.38.4In H1 of 202

18、1,new passenger car registrations increased 33%year-on-year,but were still 18%lower than in H1 of 2019.Subdued con-sumer sentiment and high unemployment had a negative impact on sales and margins.That said,automotive businesses active in the commercial vehicle/truck segment benefited from increased

19、demand(e.g.from agriculture and e-commerce companies),lead-ing to revenue growth and higher profitability compared to their peers in the passenger car segment.Semiconductor shortage,higher inflation and expenses for restruc-turing have put pressure on the profitability of automotive busi-nesses,resu

20、lting in higher credit risk.While the weaker currency exchange rate helps exporters,it has increased import prices for chips and other materials,negatively affecting operating costs.Performance in the coming months will remain impacted by the lack of semiconductors and elevated input costs,while idl

21、e capaci-ty will remain high.At the same time,the renewal of a government scheme to reduce working hours and salaries should partially mit-igate pressure on businesses results.Payments in the automotive industry take about 90 days on av-erage.Currently it is expected that both payment delays and in-

22、solvencies will not increase sharply in the coming twelve months.Brazil Economic uncertainty hinders external financing for businessesPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusBrazil automotive sector-credit risk assessementBusiness conditionsFinan

23、cing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financehighNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 monthsaveragebig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situatio

24、n(sales)-Overall indebtedness of the sector?highNon-payments over the last 12 monthsInsolvencies over the next 12 monthsDue to low cash generation,automotive businesses will rely even more on working capital lines to reinforce their cash position and to protect their liquidity.While Original Equipme

25、nt Manufactur-ers(OEMs)and large Tier 1 businesses can count on intercompany loans from their parents abroad,most suppliers will continue to apply for bank loans.However,they could face difficulties in ob-taining external financing,given the uncertain outlooks for the Brazilian economy and the secto

26、r performance.For the time being,our sector assessment remains“Poor”and our underwriting stance rather restrictive.Downside risks remain for the industry,as it is highly dependent on the future interest rate development and related bank loan conditions,as well as on con-sumer confidence and househol

27、d purchasing power.Brazil automotive output2022*Source:Oxford Economics-4020-200408.98.69.62020-28.6-30.6-25.82021*35.224.531.0*forecasty-on-y,%changeMotor vehicles&partsMotor vehicles Bodies&parts-PoorChinese automotive output is forecast to increase 10%in 2021 and by about 4%in 2022.After a 6.5%de

28、crease last year,car sales are expected to grow about 6%in 2021,and 7.5%in 2022.Due to high-er production and sales,profit margins of many automotive busi-nesses rebounded in H1 of 2021.However,Original Equipment Manufacturers(OEMs)have had to reduce production due to semiconductor shortages.This af

29、fects de-liveries of Tier 2&3 suppliers,leading to slower cash collection.Should the chip shortage last in 2022,businesses in this segment could face increasing payment delays and defaults,as many of them show lower margins and tighter liquidity compared to OEMs and Tier 1 companies.The electric veh

30、icles segment is a promising market in the long-term.However,the government has announced to gradually phase-out subsidies for e-mobility.A consolidation process is on-going,and we expect that more low-cost suppliers that produce basic parts and have widely benefited from subsidies in the past will

31、leave the market.Only those businesses with access to exter-nal funding and the ability invest in R&D constantly will survive.With 90 120 days on average,the overall payment period in the industry is quite long.Larger car producers tend to pay suppliers China Long payment periods put pressure on sma

32、ller suppliersChina automotive sector-credit risk assessementBusiness conditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financehighNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 month

33、shighbig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)+-Overall indebtedness of the sector?highNon-payments over the last 12 monthsInsolvencies over the next 12 monthsslowly,usually with longer payment terms and bank drafts.This adds additional pressure to the mar

34、gins and the capital base of smaller and/or private-owned suppliers.Due to their financial strength,our underwriting stance remains generally open for OEMs and Tier 1 suppliers.However,we are more cautious with Tier 2&3 suppliers,as lower production due to semiconductor shortage and a long payment c

35、ycle squeeze the margins and liquidity of smaller businesses.Small car dealers have recorded slim margins due to discount rates needed to stimu-late sales after the slump in 2020.Fierce competition and the tight liquidity situation of the mostly private-owned businesses in this segment remain issues

36、.China automotive output2022*Source:Oxford Economics015510204.34.74.220207.14.07.92021*9.910.010.0*forecasty-on-y,%changeMotor vehicles&partsMotor vehicles Bodies&partsPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusFair After contracting 18%in 2020,Czec

37、h motor vehicles output is forecast to rebound by only 2.5%in 2021,as car manufacturers have been forced to curb production due to shortage of semicon-ductors and other components.Since Q2 of 2021 turnover has started to decline for Original Equipment Manufacturers(OEMs)and suppliers alike,expected

38、to decrease by about 30%-40%this year.Profit margins of businesses have started to deteriorate due to higher costs for raw materials,energy and labour,while increased interest rates weigh on highly leveraged businesses.At the same time,another major surge of coronavirus cases and subsequent restrict

39、ions remain downside risks.Payments in the industry take 60 days on average,and the number of non-payments and insolvencies has been low so far,due to government support and the rebound seen in early 2021.Currently most businesses still hold enough cash to meet their liabilities,but their cash flow

40、will get under strain in the coming months.Both payment delays and insolvencies are expected to increase by up to 30%in the coming twelve months,as govern-ment support will be phased out,and ongoing issues(semicon-ductor shortage,high input prices)will persist into 2022.Larger producers are expected

41、 to remain resilient,with many of them being part of an international group.However,the credit risk of smaller and mid-sized suppliers will increase,in particular of Czech Republic A sharp increase in insolvencies expectedPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers

42、 Source:AtradiusCzech Republic automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financeaverageNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over th

43、e last 12 monthsaveragebig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)-Overall indebtedness of the sector?highNon-payments over the last 12 monthsInsolvencies over the next 12 months-businesses which are highly leveraged and/or have high exter-nal financing need

44、s.Our underwriting stance is generally cautious for the industry.All businesses are assessed on an individual basis,with respect to their financial position and performance outlook.Many sup-pliers are facing the need for additional investments in order to cope with the shift from combustion engines

45、to e-mobility.Not all of them will be able to cope with this challenge,and some Tier 2&3 suppliers will be forced to leave the market in the coming 2-3 years.In the car dealing segment the situation is currently stable,as many businesses are able to compensate lower sales volumes with higher prices.

46、-2010-100205.810.13.4-12.6-18.1-8.82.515.210.4Czech Republic automotive output2022*Source:Oxford Economics20202021*forecasty-on-y,%changeMotor vehicles&partsMotor vehicles Bodies&parts-PoorAfter contracting 27.5%in 2020,French automotive output is forecast to rebound by only 8.5%in 2021,as the curre

47、nt semicon-ductor shortage impacts production.Original equipment manu-facturers(OEMs)and larger Tier 1 suppliers still perform rather well in the currently difficult market environment,and remain financially resilient.However,the situation is different for Tier 2&3 suppliers,which had to cope with l

48、iquidity strains during the 2020 downturn.As the chip shortage has disturbed the supply chain,businesses in this segment face a lack of planning relia-bility.Additionally,suppliers suffer from increased raw material costs(e.g.metals and plastics)and higher energy prices.All this has a negative effec

49、t on cash flow and margins of many Tier 2&3 businesses,only partly mitigated by ongoing government sup-port(e.g.furlough schemes lowering wage bills).In the car dealers subsector,businesses selling second-hand cars and electrical vehicles are able to maintain profit margins.How-ever,the whole segmen

50、t is impacted by delays in new car deliv-eries and lower demand from companies.Additionally,OEMs are downsizing their sales networks.Payments in the industry take 60 days on average,and the num-ber of non-payments and insolvencies has decreased since the France Cash flow and margins of many supplier

51、s under pressurespread of the coronavirus pandemic in early 2020,as massive government support(fiscal spending and tax breaks)have bol-stered the financial strength of businesses.However,payment delays will rise in 2022,and business failures could increase up to 50%in the coming twelve months,mainly

52、 affecting smaller and medium-sized Tier 2&3 suppliers.The short-term credit risk in this segment largely depends on the duration of the current semiconductor shortage and the future development of raw ma-terials prices.Due to the ongoing shift towards e-mobility,those smaller suppliers that are hea

53、vily reliant on combustion engines(e.g.foundry work)will most probably have to leave the market in the coming years.Our underwriting stance remains generally restrictive for Tier 2&3 suppliers and car dealers.France automotive output2022*Source:Oxford Economics-4020-2004020202021*forecasty-on-y,%cha

54、nge-27.5-30.8-23.812.84.28.525.825.825.7Motor vehicles&partsMotor vehicles Bodies&partsPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusFrance automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault assessmentProfit margin

55、s:trend over the next 6 monthsDependence on bank financehighNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 monthsaveragebig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)-Overall indebtedness of the sector?hi

56、ghNon-payments over the last 12 monthsInsolvencies over the next 12 monthsPoor+-After contracting 28.7%in 2020,German motor vehicles output is forecast to decrease again in 2021,as the current semiconduc-tor shortage severely affects production.Domestic production of passenger cars declined 38%year-

57、on-year in October 2021,while new car registrations decreased 35%.Profit margins of businesses remained stable in H1 of 2021 due to the rebound in Q1,but are expected to deteriorate in the coming months,with Tier 2&3 businesses mainly affected.Even sup-pliers that do not require semiconductors for t

58、heir own manu-facturing process suffer from the“stop-and-go”production by Original Equipment Manufacturers(OEMs).Most suppliers have to be prepared to deliver parts and components just in time-as soon as OEMs resume/increase their production.Therefore they have to maintain or even increase their sto

59、cks during OEM pro-duction shortcuts,which results in ongoing high fixed costs and declining revenues.At the same time,suppliers have to cope with sharply increased costs for raw materials(e.g.steel,plastics)and fuel/energy.Tier 1 and larger Tier 2 businesses generally have high facilities and good

60、access to capital markets.However,suppliers at the lower end of the value chain face increased gearing and higher dependency on bank loans,often with tight covenants.Payments Germany Sector assessment downgrade as suppliers face major issuesPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 p

61、roducersCar dealers Source:Atradiusin the industry take 60-90 days on average,and payment behav-iour has been good over the past two years.While insolvencies decreased in 2020 and in H1 of 2021 due to a bankruptcy mora-torium and government support,a major increase is expected in the coming twelve m

62、onths.Mainly affected will be those Tier 2&3 suppliers that suffer most from the current car production in-terruption.A prolonged semiconductor shortage in 2022 remains the main downside risk for the insolvency development.Due to the ongoing production delays,input price increases,the expected surge

63、 in business failures,and challenges for suppliers to cope with the shift towards e-mobility,we have recently down-graded our sector assessment from“Fair”to“Poor”.Germany automotive output2022*Source:Oxford Economics-3015-1503020202021*forecasty-on-y,%change-24.7-28.7-16.6-7.013.70.516.321.29.3Motor

64、 vehicles&partsMotor vehicles Bodies&partsGermany automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financeaverageNon-payments over the next 12 monthsWillingness of banks to provide creditI

65、nsolvencies over the last 12 monthshighbig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)-Overall indebtedness of the sector?averageNon-payments over the last 12 monthsInsolvencies over the next 12 monthsPoor+-Italian car production already decreased in H2 of 2018

66、and in 2019,with a major 20%contraction in 2020 due to the pandemic.While it rebounded in H1 of 2021,production has slowed down again since Q3,mainly due to semiconductor shortages,and is expected to con-tract 2%this year.After the merger of PSA and FCA to Stellantis a restructuring process is under

67、way in the industry to create syn-ergies and savings,which could impact the future of several car plants in Italy.Disruptions in car manufacturing(e.g.“stop-and-go”production)have a negative impact on the whole supply chain.Many suppliers additionally suffer from increased raw material costs(e.g.for

68、 steel,plastics and resin)and higher energy prices.Profit margins of Tier 2&3 businesses have started to deteriorate due to lower revenues and higher production costs,while most Tier 1 suppliers still show good solvency and acceptable gearing.Payments in the industry take 75 days on average,and paym

69、ent behaviour returned to normal levels in early 2021 after a deteri-oration in 2020.It is expected that automotive insolvencies will increase by about 5%-10%in the coming twelve months,mainly affecting smaller suppliers that suffer from production disruptions and higher input costs.Another issue is

70、 the expiry of government Italy Shift to e-mobility is a major challenge for many suppliersmeasures(e.g.bank loans with state guarantee).The number of business failures could be even higher,if semiconductor shortage and production shortfalls last in 2022.Due to the production disruptions,modest rebo

71、und in short-term demand and the elevated credit risk amid suppliers,our under-writing stance remains rather restrictive.Regarding e-mobility,the current government schemes for electric cars(Ecobonus)are only temporary and rather insufficient to boost sales.At the same time,many Italian suppliers sh

72、ow a technological gap compared to their European peers.It is expected that stronger businesses will be able invest and reconvert their plants towards e-mobility,while other suppliers will have to leave the market in the coming years.Italy automotive output2022*Source:Oxford Economics20202021*foreca

73、sty-on-y,%change-4020-20040-20.9-11.5-28.16.731.419.510.616.56.1Motor vehicles&partsMotor vehicles Bodies&partsPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusItaly automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault

74、assessmentProfit margins:trend over the next 6 monthsDependence on bank financeaverageNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 monthshighbig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)-Overall indebt

75、edness of the sector?averageNon-payments over the last 12 monthsInsolvencies over the next 12 monthsPoor+-+After contracting 15.9%in 2020,Japanese automotive output is forecast to rebound by about 8%in 2021 and 5%2022.After a 17.2%decrease last year,new car sales are expected to recover by only 4%in

76、 2021,affected by lower supply due to semiconductor shortages,and a resurgence of coronavirus cases in Japan.In 2022,domestic car sales are forecast to grow 7%.The current shortage of semiconductors has led to lower output by large Original Equipment Manufacturers(OEMs)since Au-gust.Japanese OEMs ar

77、e additionally affected by the closure of car part plants in Southeast Asia due to a recent surge of corona-virus cases in the region.Higher costs for semiconductors have led to decreasing margins of Japanese small-and medium-sizes suppliers.Regarding e-mobility,the government has raised subsidies f

78、or electric vehicles(EV),and aims to increase the number of EV charging stations to 150,000 by 2030.The major OEMs support e-Mobility Power,a joint venture established to construct,main-tain and operate charging stations and related electrical infra-structure.Joint ventures and mergers among smaller

79、 suppliers are expected to increase in the coming years,in order to over-come technological shortcomings,and to raise more funding for R&D investment.Japan Stable credit risk for the time being,but downside risks remainJapanese automotive businesses are not overly indebted,and there is still room fo

80、r refinancing,as banks are generally will-ing to provide loans.Payments in the automotive industry take about 30-60 days on average.There was no notable increase in protracted payments in 2020 and in H1 of 2021,and no change is expected,as the rebound should gain momentum next year.Insolvencies are

81、forecast to level off in the coming twelve months.However,there is still the downside risk of a prolonged semiconductor shortage in 2022,coupled with persistently high raw material prices.This could additionally strain the already thin margins of smaller suppliers.It could also trigger a longer cred

82、it cycle,leading to a deterioration of payment behaviour,and more business failures among Tier 1&2 businesses.Japan automotive output2022*Source:Oxford Economics20202021*forecasty-on-y,%change-2010-100205.05.44.4-15.9-17.2-14.06.910.1 8.2Motor vehicles&partsMotor vehicles Bodies&partsPerformance for

83、ecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusJapan automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financeaverageNon-payments over the next 12 monthsWill

84、ingness of banks to provide creditInsolvencies over the last 12 monthsaveragebig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)-Overall indebtedness of the sector?averageNon-payments over the last 12 monthsInsolvencies over the next 12 monthsFair+In H1 of 2021,Mexi

85、can car production recovered,mainly due to robust demand from the US market,which accounts for more than 80%of Mexican vehicle and vehicle parts sales.However,the global semiconductor shortage has slowed down the rebound,and while income,margins and credit cycles of businesses have improved after th

86、e 2020 slump,they have not yet reached pre-pandemic levels.Due to lower production in Q3 of 2021 and higher prices for raw materials and logistics,the recovery of mar-gins and cash flow has slowed down.Semiconductor shortage and high input prices are expected to affect the sectors perfor-mance until

87、 H1 of 2022.Production of electric vehicles has recently started in Mexico.So far,the government has not provided any schemes to support suppliers or Original Equipment Manufacturers(OEMs)in their transition towards e-mobility.However,Mexican suppliers are expected to adapt in time to the specificat

88、ions and quality stand-ards required by OEMs with the shift towards increased electric vehicles production.Manufacturers of car parts and assemblers are mainly subsidi-aries of global groups,and support through intercompany loans allows them to maintain a low level of bank debts.At the same Mexico R

89、ecovery of businesses margins and cash flow has slowed downtime,banks are generally open to provide credit to the automo-tive industry if needed.Payments take 60-90 days on average,and the payment behaviour in the sector has been good over the past two years,while the level of insolvencies remained

90、low.Both payment delays and business failures are expected to level off in the coming 12 months.Our current sector assessment is“Fair”,and our underwriting stance remains open to neutral for large car producers and sup-pliers.However,we are restrictive in the car dealers segment,as the impact of the

91、 coronavirus pandemic on the Mexican economy has exacerbated negative sales trends in the domestic market.Mexico automotive output2022*Source:Oxford Economics20202021*forecasty-on-y,%change-19.7-21.2-18.116.222.019.18.48.68.2-3015-15030Motor vehicles&partsMotor vehicles Bodies&partsPerformance forec

92、ast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusMexico automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financeaverageNon-payments over the next 12 monthsWilli

93、ngness of banks to provide creditInsolvencies over the last 12 monthswillingbig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)Overall indebtedness of the sector?averageNon-payments over the last 12 monthsInsolvencies over the next 12 monthsFair+After contracting 11

94、.7%in 2020,South Korean automotive output is forecast to rebound by about 5%in 2021 and 2.5%2022.New car sales increased year-on-year in H1 of 2021 in the domestic market and abroad,but have started to decrease since then,as semicon-ductor shortages have caused supply and production disruptions.Lowe

95、r output by large South Korean Original Equipment Manu-facturers(OEMs)has a ripple effect along the value chain.While the profit margins of OEMs have remain stable so far,those of suppliers have started to deteriorate.At the same time,the finan-cial situation of some Tier 2&3 suppliers is more strai

96、ned due to larger borrowing.Many Tier 1 suppliers are already preparing for the transition towards e-mobility,expanding related facilities.However,this transition will prove to be more difficult for Tier 2&3 business-es,which often lack the necessary financial strength and tech-nological skills.Whil

97、e the South Korean government has not yet launched a support scheme for suppliers,it plans to spend USD 10.3 billion in 2022 for e-mobility,including incentives for hydro-gen and battery-electric vehicles and charging stations.Payments in the automotive industry take about 60 days on av-erage.Both p

98、ayment delays and insolvencies are expected to increase in 2022,mainly affecting those smaller suppliers that South Korea Increased credit risk for highly leveraged suppliersalready face financial difficulties(e.g.due to high leverage)and suffer most from production cuts,sales decrease,deteriorating

99、 margins and extended credit terms.Currently it is expected that business failures will increase by about 20%in the coming twelve months,but the rise could be even higher if the current supply issues last in H1 of 2022.Our underwriting stance remains generally neutral for OEMs and Tier 1 suppliers,w

100、hich are generally able to cope with deterio-rating sales and margins,helped by their financial strength and strong group background.Due to the elevated credit risk of Tier 2&3 businesses,our underwriting stance is generally more re-strictive for this segment.South Korea automotive output2022*Source

101、:Oxford Economics20202021*forecasty-on-y,%change-2010-100202.52.12.9-11.7-13.1-10.3-2.612.75.4Motor vehicles&partsMotor vehicles Bodies&partsPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusSouth Korea automotive sector-credit risk assessement Business co

102、nditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financeaverageNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 monthsaveragebig increaseincreasestabledecreasebig decrease Source:Atradiu

103、sDemand situation(sales)Overall indebtedness of the sector?averageNon-payments over the last 12 monthsInsolvencies over the next 12 monthsFair-After contracting 18.6%in 2020,motor vehicles output is forecast to rebound by only 2.5%in 2021,as the current semiconductor shortage severely affects produc

104、tion.While car sales rebounded year-on-year between January-August 2021,they were 33%lower than in the same period of 2019,due to ongoing consumers uncertainty and less supply.Profit margins of businesses have increased in H1 of 2021 thanks to improved cost structures,but have started to decrease si

105、nce then,due to semiconductor shortage,logistic bottlenecks and higher prices for raw materials and energy.While production shortfalls have recently worsened,a strong rebound is expected in 2022,with output increasing 18%.The industry should benefit from the upcoming disbursement of the Next Generat

106、ion EU fund,supporting suppliers in their shift towards e-mobility.Additionally,the Spanish government has announced public and private e-mobility investments worth EUR 24 billion over the coming three years.Spanish automotive businesses remain highly dependent on bank funding or other external fina

107、ncing sources,in order to finance high level of stocks and large investments in fixed assets.While the gearing of many companies has increased in 2020,banks have supported businesses.Backed-up by government guarantees,they provided long-term loans with grace periods of 1-2 years.Spain Ongoing issues

108、,but a strong rebound expected in 2022Payments in the automotive industry take 60-90 days on average.Payment behaviour has been good over the past two years,and both payment delays and insolvencies are not expected to increase in the coming months.However,should the current chip shortages and produc

109、tion cuts continue in 2022,smaller Tier 2&3 suppliers with limited access to new financing could face higher default risk.Our underwriting stance is open for OEMs and Tier 1 suppliers,while more cautious for Tier 2&3 suppliers.In this segment,the gearing of businesses and their capacity to deal with

110、 it are of major importance for underwriting decisions.Spain automotive output2022*Source:Oxford Economics20202021*forecasty-on-y,%change17.919.416.6-18.4-18.6-18.12.56.14.3-2010-10020Motor vehicles&partsMotor vehicles Bodies&partsPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCa

111、r dealers Source:AtradiusSpain automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financehighNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the l

112、ast 12 monthshighbig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)Overall indebtedness of the sector?highNon-payments over the last 12 monthsInsolvencies over the next 12 monthsFair-After contracting 23.8%in 2020,Swedish motor vehicles output is forecast to reboun

113、d by only 8%in 2021.Original Equipment Manufacturers(OEMs)have been forced to curb production due to a shortage of semiconductors and other components.After a sharp increase in H1 of 2021,new car registrations declined 21%year-on-year in September,due a supply shortage of new cars.OEMs have started

114、to prioritise production of higher-margin models in order to sustain profitability.While margins of OEMs and suppliers are not expected to decrease sharply in Q4 of 2021,ongoing production delays in 2022 would subsequently squeeze the margins of suppliers.Another issue is exchange rate volatili-ty,a

115、s the sector is highly export-dependent.Costs are usually in-curred in Swedish krona,and the recent appreciation against the Euro could hurt international competitiveness.Swedish automotive businesses are not highly leveraged,while the current low interest rate environment facilitates debt servic-in

116、g.Depending on the level in the supply chain,payment duration in the automotive sector ranges from 30 to 90 days.Automotive insolvencies are expected to increase by about 10%in the coming twelve months,as fiscal support will be phased out.The increase will mainly affect smaller suppliers that were s

117、aved from bank-ruptcy in 2020 and in H1 of 2021 by corona-related government Sweden Ongoing production delays could impact margins of supplierssupport.In addition,smaller businesses could face liquidity is-sues in Q2 of 2022,when payment of deferred taxes will become due.Downside risks for the insol

118、vency development in 2022 are a prolonged shortage of materials like semiconductors and on-going supply chain bottlenecks,as well as another surge of the pandemic.Despite the downside risks our sector outlook remains“Fair”for the time being.As the majority of Swedish suppliers is active in the comme

119、rcial vehicle segment(trucks and buses),the pressure to swiftly con-vert to e-mobility is lower than in the passenger cars segment,providing those suppliers with more time to adapt and to trans-form their businesses.Sweden automotive output2022*Source:Oxford Economics20202021*forecasty-on-y,%change-

120、3015-1530-17.6-23.8-15.97.824.120.8-3.3-3.4-3.30Motor vehicles&partsMotor vehicles Bodies&partsPerformance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusSweden automotive sector-credit risk assessement Business conditionsFinancing conditionsDefault assessmentProfi

121、t margins:trend over the next 6 monthsDependence on bank financeaverageNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 monthshighbig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)Overall indebtedness of the se

122、ctor?averageNon-payments over the last 12 monthsInsolvencies over the next 12 monthsFair-After contracting 25.6%in 2020,British automotive output is forecast to rebound by only 8.5%in 2021,as the current sem-iconductor shortage severely affects production.New car reg-istrations decreased 34%year-on-

123、year in September 2021.At least,concerns over severe repercussions for the sector caused by Brexit(e.g.tariff price hikes and trade frictions)have eased.The December 2020 trade deal allows tariff-and quota-free trade be-tween the UK and the EU.However,costs associated with customs declaration,local

124、content audits and delays in just-in-time sys-tems remain issues for some Original Equipment Manufacturers(OEMs)and suppliers.Over the past couple of months,profit margins of businesses have come under strain,due to ongoing production cuts and higher prices for steel/metals and energy.Margins will d

125、eteriorate fur-ther,as disruptions in vehicle production are expected to last until H1 of 2022.Suppliers have to cut back their output accord-ingly,often at short notice,while they have to manage workforce numbers or reduce working hours in order to control costs.Cash flow issues are on the rise in

126、this segment,and will persist in the coming months.Payments in the industry take 60 days on average,but for sup-pliers with low leverage they can take even 150 180 days.Both United Kingdom Credit risk situation of suppliers about to deterioratepayment delays and insolvencies are expected to increase

127、 in the coming twelve months,mainly among smaller suppliers.In addi-tion to production delays,higher input prices and cost manage-ment issues,they face unwinding fiscal support,expiring bank-ruptcy moratoriums and repayment of loan obligations drawn at the height of pandemic.After decreases seen in

128、2020 and in H1 of 2021,business failures could increase by more than 50%year-on-year in the coming twelve months.Due to the production issues that will most probably last until mid-2022 and the sharply increasing credit risk amid suppliers,our underwriting stance is mainly restrictive.Among car deal

129、ers,the second-hand segment is an exception,as businesses have benefited from sharply increased sales prices.United Kingdom automotive output2022*Source:Oxford Economics20202021*forecasty-on-y,%change-3015-1530-25.6-25.1-28.48.39.68.517.418.312.50Motor vehicles&partsMotor vehicles Bodies&partsPerfor

130、mance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusUnited Kingdom automotive sector-credit risk assessementBusiness conditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financehighNon-payments over the next

131、 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 monthsaveragebig increaseincreasestabledecreasebig decrease Source:AtradiusDemand situation(sales)-Overall indebtedness of the sector?highNon-payments over the last 12 monthsInsolvencies over the next 12 monthsPoor+-After

132、declining 27.9%in 2020,US car sales are expected to grow only 7.5%this year,as supply issues thwart robust demand.Low production growth in 2021 is mainly due to semiconductor short-age,and the impact of Hurricane Ida on petrochemical companies has caused supply constraints of plastics.While semicond

133、uctor shortage is expected to last into 2022,output of vehicles is forecast to grow 12%next year.In order to maintain profits,Original Equipment Manufacturers(OEMs)have adjusted their production by prioritising high-mar-gin and most demanded models(e.g.trucks).They have also been able to increase sa

134、les prices for vehicles.Margins of suppliers have come under pressure due to production shortfalls,higher prices for materials and labour shortage,while at the same time fixed costs remain high.However,a major deterioration of margins is not expected,as suppliers also benefit from ongoing demand and

135、 higher sales prices.Being a capital-intensive industry,automotive is dependent on bank finance,and many businesses are highly leveraged.Current-ly banks are very willing to provide loans to the sector.Increased competition among financial institutions has led to loosened lending standards over the

136、last couple of months.Payments in the United States Supply chain pressures,but higher sales prices sustain marginsUnited States automotive output2022*Source:Oxford Economics-2010-1002020202021*forecasty-on-y,%change12.115.89.0-12.8-15.8-10.08.911.910.5Motor vehicles&partsMotor vehicles Bodies&partsa

137、utomotive industry take about 60 days on average.During the pandemic-related shutdowns in 2020,businesses have stretched payments in order to preserve cash,but meanwhile the majority of companies has returned to normal payment terms.The level of payment delays and insolvencies has been low over the

138、past cou-ple of months,and no substantial increase is expected in 2022.Taking into account the current challenges for the sector,but also its financial resilience,our sector assessment remains“Fair”.The Biden administration plans to support e-mobility by investing USD 174 billion in charging station

139、s,mass transit vehicles and school buses.Large OEMs have announced to launch more electric vehicles and large investments in battery plants.Performance forecast along subsectorsOEMs&Tier 1 Tier 2&3 producersCar dealers Source:AtradiusUnited States automotive sector-credit risk assessement Business c

140、onditionsFinancing conditionsDefault assessmentProfit margins:trend over the next 6 monthsDependence on bank financehighNon-payments over the next 12 monthsWillingness of banks to provide creditInsolvencies over the last 12 monthshighbig increaseincreasestabledecreasebig decrease Source:AtradiusDema

141、nd situation(sales)Overall indebtedness of the sector?highNon-payments over the last 12 monthsInsolvencies over the next 12 monthsFair Atradius N.V.David Ricardostraat 1 1066 JS AmsterdamPostbus 8982 1006 JD AmsterdamThe NetherlandsPhone:+31 20 553 9111 If youve found this report useful,why not visi

142、t our website ,where youll find many more Atradius publications focusing on the global econo-my,including more country reports,industry analysis,credit management busi-ness guidance and essays on current business issues.Follow us to stay up to date with our latest releases.Connect with us on social mediaAtradiusAtradiusAtradiusGroup