Automotive
Supporting automotive OEMs and suppliers with financial close, planning, and supply chain finance solutions for a rapidly transforming industry.
Industry Overview
The automotive industry is navigating a historic pivot from the century-old internal combustion engine to a software-defined, electric mobility ecosystem. This transition requires a massive and delicate reallocation of capital (CapEx) to fund EV research and development while maintaining the profitability of legacy operations. Beyond R&D, the volatility of raw materials like lithium and cobalt creates significant instability in inventory valuation, demanding real-time cost analysis. Furthermore, the sheer volume of vehicle leasing contracts necessitates flawless IFRS 16 compliance to manage balance sheet integrity, while complex multi-tier supply chain financing requires sophisticated treasury oversight to ensure global liquidity.
Key Challenges
- CapEx reallocation between EV R&D and legacy ICE profitability
- Raw material volatility (lithium, cobalt) and real-time inventory valuation
- IFRS 16 compliance for high-volume vehicle leasing contracts
- Multi-tier supply chain treasury and global liquidity management
Relevant Solutions
Solutions tailored for this industry
SAP Advanced Financial Closing (AFC)
Automate and accelerate your financial close with SAP's intelligent closing solution.
SAP Treasury and Risk Management (TRM)
Comprehensive treasury and risk management for financial instruments and hedging strategies.
SAP Financial Supply Chain Management (Credit, Collection, Dispute)
End-to-end financial supply chain management covering credit, collections, and dispute resolution.
SAP Analytics Cloud (SAC)
Unified analytics, planning, and predictive capabilities in a single cloud solution.
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