Task Force Services for the Automotive Sector: Guiding Companies Through Financial Challenges
In response to the evolving challenges within the automotive sector in Central Europe, particularly with the increasing competition from Chinese manufacturers, many Tier 1 and Tier 2 suppliers are facing significant financial difficulties, often leading to insolvency. Task Force services have emerged as an essential solution to help companies navigate these turbulent times. Our expertise and experience allow us to provide vital support at critical moments, ensuring business continuity and stabilizing financial operations.
Scenario 1: Preventing Insolvency and Financial Stabilization
In cases where companies are struggling financially but have not yet entered insolvency, we assist in stabilizing operations and securing alternative financial solutions. Our services during this phase include:
Supplier Negotiation and Financing Support
Facilitate negotiations with suppliers to extend payment terms and improve cash flow.
Identify and pursue alternative financing options, such as private investors or other non-bank solutions.
Liquidity Planning and Forecasting
Develop detailed daily, monthly, and yearly liquidity plans to ensure operational stability and financial predictability.
Provide a solid foundation for presenting financial forecasts to OEMs, banks, and suppliers, helping rebuild trust and ensure continued collaboration.
Financial Reporting and Planning
Offer ongoing financial tracking and reporting to help companies monitor their financial health and make informed decisions.
Assist with short and medium-term financial planning, focusing on both operational needs and future project launches.
Support for Operational and Financial Integration
Integrate financial planning with operational needs, ensuring that the company is prepared for upcoming challenges and investments.
Provide tailored advice to align financial strategies with the company's long-term objectives.
Managing Multi-Departmental Involvement
Many OEMs involve various departments such as risk management, purchasing for different projects, logistics, production and quality, and legal. When suppliers are involved in multiple projects simultaneously, this increases the complexity of the situation.
Our approach focuses on fostering cooperation between suppliers and different departments within the OEM, ensuring a structured and coordinated effort to mitigate risks and address the growing complexity.
Addressing ERP Limitations
Many small and medium-sized enterprises (SMEs) rely on basic ERP (Enterprise Resource Planning) ecosystems, which are often fragmented and lack integration. This creates challenges in reporting and obscures the true financial picture across the company.
Our team assists in identifying and overcoming these ERP limitations, ensuring more accurate and comprehensive reporting and planning which is crucial for informed decision-making.
Scenario 2: Supporting Companies in Insolvency
When a company enters insolvency, our Task Force services focus on ensuring its operations continue while managing the financial and legal complexities that arise. We provide the following services to support OEMs and Tier 1 suppliers during this challenging phase:
Operational Continuity Support
Ensure the continued operation of the company by addressing immediate operational needs.
Provide daily reporting to OEMs, highlighting the financial status and next critical steps.
Financial Management
Assist with securing emergency cash and facilitating direct payments to suppliers.
Guide companies on how to communicate with banks and manage frozen accounts.
Legal and Regulatory Guidance
Help navigate complex insolvency proceedings, advising on how to communicate with the insolvency manager and other relevant stakeholders.
Negotiate with energy companies and labor offices to manage ongoing liabilities.
Stakeholder Communication
Provide transparent updates to OEM management, ensuring they are well-informed of the company’s situation at various levels of the organization.
How Can We Help You in Insolvency or Short-Cash Situations, or in Unclear Circumstances?
Our Task Force services offer a comprehensive solution for automotive companies facing financial difficulties, insolvency, or cash flow issues. We bring together deep expertise in operations, finance, and law to guide businesses through these challenges, ensuring their continued operations and setting a foundation for long-term recovery.
Key Benefits:
Ensured Operational Continuity
We help maintain operations even during financial distress, minimizing disruptions.
Transparent and Consistent Communication
We facilitate clear communication with OEMs and other key stakeholders such as banks, financial institutions, and labor offices, ensuring that all parties are informed of the situation and the next steps.
Practical Guidance
We offer hands-on advice for navigating insolvency proceedings, improving financial management, and conducting negotiations with creditors and suppliers.
Tailored Liquidity Planning
Our team works to create custom liquidity plans to prevent insolvency and ensure the company’s financial stability in the short and long term.
Expertise in Complex Financial Situations
We guide companies through challenging financial negotiations, including supplier discussions and securing alternative financing options.
Structured Approach to Managing Multi-Departmental Cooperation
When suppliers are involved in multiple projects, we ensure a coordinated approach across departments, managing the increased complexity effectively.
ERP System Support
We assist SMEs in overcoming the limitations of basic ERP ecosystems, enabling more comprehensive financial reporting and better alignment with project management.
Through our Task Force services, we offer immediate and long-term solutions that stabilize companies, preserve valuable relationships, and ensure sustainable success.
