The North American auto sector is facing a perfect storm. Electrification, aging fleets, and aftermarket complexity are already straining operations. Now, cyber threats, bankruptcies, and geopolitical shocks are multiplying – creating a domino effect that halts production, delays repairs, and triggers costly recalls.
Moody’s latest eBook reveals that resilience now depends on visibility. Tier 2 and Tier 3 suppliers, once peripheral, are now pivotal.
Key findings from the report:
- EV supply chains are exposed to shortages in battery materials, semiconductors, and thermal systems.
- Aftermarket risks are rising as aging ICE fleets rely on fragile Tier 2/3 suppliers for service parts.
- Cyber threats are escalating, with lower-tier vendors often lacking robust defenses.
- Financial distress is a leading indicator of operational failure – early signs include quality issues, delivery delays, and premium freight incidents.
- Bankruptcies of key suppliers can trigger widespread disruption and reputational damage.
- Continuous monitoring across all tiers – financial, operational, and compliance – is now essential to protect supply chain continuity.
