Crisis Management of a Commercial Vehicle Manufacturer at Risk of Insolvency

Interim Mandate Objective as CEO ad interim in Executive Position
 

Examination and implementation of all available recovery options to avoid insolvency with subsequent strategic exit through company sale.

Manufactor Company from the Automotive Sector
 
Commercial vehicle manufacturer for temperature-controlled vehicles, airfield refueling vehicles, tank vehicles
 
Identified Intervention Areas

• Dramatic economic difficulties with risk of insolvency

• Negative contribution margins for 90% of all vehicle projects

• Fundamental deficits in production and work preparation

• Incorrect calculation bases

• Critical liquidity situation

• Inefficient disposition processes

• Delayed initiation of restructuring measures

• Limited options for recovery

• Problematic negotiating position with major customers

• Inadequate financing structures
   

Implemented Measures

• Assumption of overall responsibility in technical and commercial aspects

• Conducting a comprehensive calculation revision

• Reorganization of disposition

• Examination of sale-and-lease-back and factoring options

• Support in major customer discussions

• Preparation of an IDW S6-compliant going concern forecast

• Preparation of bank and investor discussions

• Exploration of strategic sales options

• Documentation of all recovery efforts

• Preparation for controlled exit
   

Results

• Determination of the impossibility of self-recovery due to too late involvement of an expert

• Successful identification of a strategic investor

• Orderly preparation of the company sale

• Documented recovery efforts

• Transparent representation of the economic situation

• Professional preparation of sales documents

• Avoidance of uncontrolled insolvency

• Securing the going concern perspective through sale

• Preservation of stakeholder interests in the sales process
   

Applied Competencies

• Extensive experience in crisis management in the vehicle industry

• Expertise in evaluating recovery options

• Profound knowledge in preparing going concern forecasts according to IDW S6

• Experience in preparing company sales

• Competence in negotiations with banks and investors

• Expertise in revising calculation systems

• Ability to manage complex stakeholder relationships

• Know-how in conducting due diligence processes

• Experience in dealing with imminent insolvency

• Competence in controlled handling of crisis situations