Comprehensive Reorganization Followed by an M&A Process

Back in 2019, the diesel crisis was still weighing heavily on the automotive industry. One year later, the Covid pandemic caused the world economy to enter crisis mode for an extended period of time. The resulting semiconductor crisis had a particularly severe impact on the automotive industry, forcing it to temporarily stop production lines and shut down entire plants. At the same time, rising material and freight costs put pressure on companies in the automotive industry, followed by a huge spike in energy prices as a result of the Ukraine war.

These multi-crisis scenarios also hampered the reorganization of our client. Haselhorst Associates was tasked with managing the process of this automotive supplier’s reorganization, by providing a CRO (and accompanying team) for the company’s executive board and thus restoring its future viability. Throughout the process, its management was obliged to respond flexibly to changing market conditions.

It was necessary to adapt production plans and capacities in line with changing circumstances as quickly as possible, while continuously reviewing assumptions. A consistent and entrepreneurially-minded response on the part of the management was essential for the successful execution of the reorganization process – based on transparent information on the company’s situation. Continuous communication with all of the stakeholders involved also played a decisive role.