Automotive Industry Is Most Vulnerable to Distress, Survey Finds

The automotive industry is the most vulnerable sector globally to financial distress given supply chain instability, margin pressures and trade tensions, a survey by consulting firm AlixPartners found.

AlixPartners’ turnaround and transformation survey that polled 371 industry experts found that 66% of respondents said the automotive industry is the most likely to face significant distress in 2025. That rises to more than 80% of respondents from Europe, the Middle East and Africa.

“The automotive sector is an industry with high capital costs and very thin margins,” Eric Koza, AlixPartner’s global co-head of turnaround & restructuring services, said in an ...