Automotive suppliers in Germany are finding it more difficult to obtain bank loans.
This was revealed by a survey of 74 suppliers conducted by the consultancy firm Oliver Wyman and the German Association of the Automotive Industry (VDA), the results of which were published in the German newspaper Welt am Sonntag.
According to the survey, two thirds of the companies stated that it had become more difficult to obtain bank financing over the past three years. In addition to higher interest rates, the banks also demanded more collateral or shorter terms.
The rise in financing costs is hitting companies at an unfavourable time because the transformation of the industry is massively increasing the need for capital, Maximilian Majic, Partner at Oliver Wyman, told the newspaper.
"There is a threat of an increase in insolvencies in the already crisis-ridden automotive sector," he said.
From the banks' perspective, the conditions reflect the higher risk and the changed interest rate environment.
"However, it is also crucial that transformation risks cannot be financed exclusively through bank loans," said Heiner Herkenhoff, Managing Director of the German Bankers Association.
More private capital needs to be mobilized in Germany and Europe, for example by strengthening the securitization market.