Disruption is Afoot in the Auto Space (Short Syncreon)

Rod Lache, Managing Director of Wolfe Research and Institutional Investor’s #1 ranked auto analyst every year since 2012 puts it bluntly: “The automotive landscape will change dramatically over the next five or 10 years.” Recode’s Kara Swisher asks, will owning a car “[b]e as quaint as owning a horse” one day?

We’ve been talking about a coming wave of auto disruption and distress since our inception. Here we discussed the cascading effects of EVs (“Removing the engine and transmission destabilizes the car industry and its suppliers” h/t Benedict Evans); here, using the case of GST AutoLeather Inc., we declared, “Disruption, illustrated”; and here, in October 2017, we asked “Is Another Wave of Auto-Related Bankruptcy Around the Corner?” Ok, fine, “around the corner” is open to interpretation. ……

One company that garnered our attention provides services on both sides of the border: Auburn Hills-based Syncreon Group BV is a specialized contract logistics company focused specifically on tech and auto supply chains with locations scattered throughout the US and Canada, including Detroit and just over the border in Windsor. Major clients include FCAU, Ford Motor Company ($F), General Motors Inc. ($GM), Volkswagen Group ($VWAGY), and many others (e.g., Harley Davidson Inc. ($HOG), Audi AG ($AUDVF), BMW ($BMWYY), etc.). The company is at risk.

Exemplifying this risk are some recent events:

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