Driving change in the automotive sector: is it facing a perfect storm?

Driving change in the automotive sector: is it facing a perfect storm?

In this article Patricia Godfrey  of CMS examines the challenges facing the once buoyant automotive sector. The main points arising from this article are as follows:

––The media is awash with news of concern, decline and uncertainty in the automotive sector. Falling domestic demand and lack of clarity around Brexit are two key factors.

––Confusion over diesel taxation and wider air quality plans are impacting domestic demand at a time when unprecedented technological advances are leading to growth in demand for electrically operated vehicles with driverless cars on the domestic horizon.

––The lack of clarity surrounding Brexit could have a profound impact on the sector where much of the legal and regulatory framework derives from EU Regulations and Directives.

––Decreasing domestic demand and the prospect of exports faltering if a cohesive Brexit plan does not emerge imminently means banks, OEMs (original equipment manufacturers), Tier 1 and 2 suppliers and a range of distributors need to be increasingly alert and ready to deal with distress and, at worst, failures in the sector.

Click here to read the full article.

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About the author:

Anna joined the Restructuring and Insolvency team at Lexis®PSL in August 2013 from Berwin Leighton Paisner where she was a senior associate in the Restructuring Team.

Anna has worked on a number of large scale restructurings primarily in the UK market acting on behalf of lending institutions.

Recent transactions include the restructuring of a UK hotel chain and the administration sale of part of the Connaught group. Anna has also spent time on secondment at The Royal Bank of Scotland and trained at Clifford Chance qualifying in 2007.