Currency, a key moving part in the automotive sector
In order to compete in an environment as dynamic as the automotive sector, parts manufacturers must meet a series of basic requirements:
- International presence through subsidiaries: Automakers and OEMs require their suppliers to operate wherever they have their plants.
- Flexibility to adapt to changes in the sector: It can be necessary to invest so as to enter new markets, often following automakers who venture into different locations attracted by opportunities offered by the currency and raw material markets.
- Need to control costs: Given the sector’s competitiveness, it is vital for manufacturers to reduce their costs in order to maximise return on investment.
Currency management in the automotive parts industry
With a large volume of international transactions, companies have a lot to gain from improving the efficiency of their currency operations through the following three-pronged approach:
Tailored currency management for every project
A specific strategy geared towards leveraging the exchange rate, while taking into account the needs and characteristics of the most important projects, could provide a substantial advantage, both in attracting major clients and in boosting the profitability of ongoing projects.
Streamlining payment and collection processes
An efficient technological platform with multi-user and multi-company access, through which you can centralise payments and collections, as well as getting an overview of your capital flows and your currency exposure.
Managing multi-currency risk
The multinational presence of auto firms, with subsidiaries in several countries, calls for a structural currency risk plan that protects profit margins in each of your lines of business.
“Times have changed. Today business growth requires success in international markets. In Kantox, we have found the perfect partner on this front; they manage all our foreign currency needs, so that we can focus on the core business strategy”