On Sunday 27 July, US and the EU have struck a deal to set at 15% tariffs on EU export to the US, which is not as high as president Donald Trump previously threatened, but can still impact Europe’s biggest car producer, Germany.
Senior distressed reporter Bianca Boorer, host of this series, travelled to Munich to find out just how big the dent on the auto sector will be.
She sits down with Hendrik Hauke restructuring partner at Willkie, who has acted as legal advisor to auto suppliers Huf Group and IFA Group, Felix Kuhnert, head of automotive in Germany at PwC, and Florian Bruder, restructuring partner at DLA Piper.
In the podcast we take a look to the challenges the car industry was already facing with its mandated transition to electric vehicles by 2035 and whether auto makers can switch to producing equipment for the defense industry.
On the finance side, banks have been tightening their belts on their exposure to the sector, which may open up private credit as a new option. Restructurings have also been on the rise as a result of the volatility but not at the speed at which one would expect. At 9fin we have been covering the restructurings of auto suppliers Huf Group, Webasto, IFA Group and Standard Profil.
What will put the brakes on this downturn? Tune in to find out.
Have any feedback for us? Send us a note at podcast@9fin.com.
