automotive

As we bid farewell to 2023, Baker Ing reflects on a vibrant year of growth, innovation, and industry impact. It’s been a period where we not only consolidated our expertise in credit and receivables management but also expanded our reach and influence across the industry.

A standout achievement this year has been the launch of these very Baker Ing Bulletins. These weekly insights are quickly becoming a cornerstone of industry intelligence, amassing nearly 2000 subscribers in just a few short months, already reading weekly. The popularity of these updates underscores our aim to provide thought leadership and act as your trusted advisors in the trade credit space.

Commitment to in-depth analysis and actionable insights was further evident in the release of a whole raft of new sector-specific research reports. Covering diverse areas like Healthcare, Automotive, FMCG, and Beauty & Perfumes, these reports offered strategic guidance, helping our clients navigate the complexities of their markets. These publications have been offered free in full for all, and we continued to improve access by offering online viewing of the reports with dynamic updates.

2023 also saw key additions to the Baker Ing family. The arrival of industry experts such as Bill Dunlop EAICD FCICM-MIEx EIICM EACCEE and John Kelly marked a significant expansion of our capabilities. Their expertise in international credit and order-to-cash processes has greatly enriched our service offerings and client interactions, enhancing our reputation as a global leader in our field.

Another highlight this year was our active participation in pivotal events like the Credit Expo Belgium, AICDP – Association Of International Credit Directors and Professionals , Credit Matters XII with Callisto Grand, and the Irish Credit Team Awards with Declan Flood which showcased our commitment to industry engagement and professional development. Additionally, our hosted events and webinars, including the Baker Ing Credit Cruise in London, and the Situation Room in Krakow have been not just platforms for knowledge sharing but also celebrations of our vibrant professional community.

As we look towards 2024, Baker Ing is poised to continue our trajectory of impactful growth and innovation. We are committed to building on the successes of this year, furthering our mission of delivering exceptional services and fostering a community of well-informed and connected credit professionals.

We have a whole lot more planned!

2023 has been a remarkable year for Baker Ing. Our journey has been a testament to the dedication, excellence and leadership of our people, partners and clients. We look forward to the new year with renewed enthusiasm, ready to embrace new challenges, new opportunities, and to continue our journey of innovation and excellence in high-value and sensitive accounts receivable.

Merry Christmas.

The automotive industry stands at the complex intersection of innovation, geopolitics, and financial intricacy; a juncture that presents unique challenges in credit management. While the Worldwide Risk Score (WRS) of 5.5 may suggest a moderate landscape, the subtleties at play deserve a closer examination. In this industry, multiple factors often converge to affect credit risk in surprising ways.

Consider how supply chain disruptions due to semiconductor shortages can lead to extended payment terms. In isolation, this might be manageable. However, layer in the potential for geopolitical unrest, which could disrupt supply chains even further or freeze assets, and the credit risk escalates substantially. When companies are also engaged in mergers or acquisitions, often accompanied by restructuring debts and complex payment structures, the credit landscape becomes even more volatile.

Moreover, companies in the automotive industry often need to channel substantial funds into R&D to stay competitive. While this leads to long-term growth, it also induces short-term liquidity strains, affecting credit risk almost immediately. What complicates this further is the ever-changing regulatory environment around emissions, safety standards, or trade, which can swiftly alter a company’s ability to honour its debts.

What we see detailed in this paper is not just a list of isolated factors but a web of interconnected variables. This paper aims to unpack these complexities, offering a robust framework that captures the multidimensional nature of trade credit risk in the automotive industry. We go beyond identifying individual factors, striving instead to understand how these elements interact to shape a fluid and ever-changing credit risk landscape.

In an industry marked by both its dynamism and complexities, effective risk management means understanding not just the components but also their interplay. With this in-depth analysis, we hope to provide you with the tools to assess, adapt, and thrive in this challenging yet rewarding sector.

I hope you’ll find this paper useful.

Lisa Baker-Reynolds,

CEO, Baker Ing International

Access in-depth analyses, comprehensive data, and insights that can shape your strategic decisions. Download the full Automotive 2023 report and arm yourself with the knowledge to navigate the intertwined future of cybersecurity and business.

🔗 Download the Full Report Now

Stay ahead. Stay informed with Baker Ing.