A third of Europe’s auto suppliers now sit in the distressed zone, and the share has barely moved in two years. Thesector has stopped behaving like a set of single restructuring cases and started behaving like a structural problem — one where operational stabilization no longer fixes the credit story.

Full written analysis: https://open.substack.com/pub/fixedfloating/p/the-autosupplier-problem-that-refinancing?r=718tew&utm_campaign=post&utm_medium=web

Josef Pschorn speaks with Daniel Steiner of PwC and Dr. Hendrik Hauke of Willkie Farr & Gallagher about whyEuropean auto-supplier distress has become structural, and how the restructuring toolkit actually gets used when it does.

Key takeaways:

• 40% of automotive CEOs expect their company not to last ten years on the current path; 33% of Europeansuppliers are already distressed.
• The binding constraint is the cost ofcapital — German suppliers carry the highest interest-to-EBIT ratio of anyregion.
• Europe runs 25–30% overcapacity and China around 50%, making consolidation, not refinancing, the real cure.
• LEONI’s StaRUG delevered successfully the balance sheet

Guest links: PwC https://www.pwc.de | Willkie https://www.willkie.com

Fixed + Floating:

⁠https://www.linkedin.com/company/fixed-floating⁠⁠ | ⁠⁠https://twitter.com/FixedFloating⁠⁠ | ⁠⁠https://fixedfloating.substack.com/⁠⁠

This podcast is for informational purposes only and does not constitute investment advice.

Recorded: 04 June 2026.

#fixedfloating #creditmarkets #autosuppliers #restructuring #distresseddebt