The global automotive industry is facing one of its most challenging transformational environments in decades. At the same time, original equipment manufacturers (OEMs) and suppliers are expected to maintain resilient supply chains while funding innovation and growth.
In response, working capital optimization has become a top priority for treasury leaders worldwide. In Germany, several of the world’s most valuable premium automotive brands have already adopted innovative financing models to unlock liquidity and support suppliers, offering a blueprint for the broader industry globally.
It is important to understand the challenges impacting the industry:
As a result of all this, automotive manufacturers and suppliers are facing growing pressure on their balance sheets. Studies from around the industry validate the friction:
With these dynamics, working capital optimization has become mission-critical. This is where flexible financing solutions such as supply chain finance (SCF) and receivables finance become strategic tools.
Supply Chain Finance
Supply chain finance has become a cornerstone initiative for many automotive OEMs and Tier-1 suppliers to strengthen their supply chains. In these programs, the buyer sets up a financing arrangement that allows suppliers to request early payment from one or more financing partners. The supplier receives cash immediately, minus a small discount, while the buyer repays the financing partner only at invoice maturity. Because financing costs are linked to the buyer’s—often prime—credit rating, suppliers gain access to far more favorable conditions than they could secure independently, enabling them to cover expenses, invest in growth, and maintain stable buyer relationships without relying on costly external funding. At the same time, buyers benefit from extended payment terms that preserve cash flow, strengthen supply chain resilience, and reduce the risk of disruption due to supplier insolvency.
In an industry riddled with thin margins, volatility, and ongoing transformation, SCF offers a win-win: financial stability to both the buyer and the supplier, supporting growth and greater resilience across the entire supply chain.
Success Story: Daimler AG Achieves Scalability with Multi-funder Network
Formerly Daimler AG (now Mercedes-Benz) had an existing single-bank SCF program that couldn’t scale due to different constraints. They partnered with CRX Markets, a marketplace providing maximum flexibility in its solutions, and saw notable improvements:
Learn details of how they did it here.
Receivables Finance
The sale of receivables allows automotive suppliers to convert unpaid customer invoices into cash, providing them with a significant advantage. They can pay vendors, meet payroll needs, and fund operational expenses without waiting weeks or months for customer payments. Plus, they gain the liquidity they need to respond swiftly to market changes, again without having to take on additional debt.
Success Story: Well-Known Sub-IG Automotive Supplier Improves Liquidity with Greater Flexibility
A leading automotive supplier near Munich launched a single-bank, 3-year committed Receivables Select transaction on the CRX marketplace, but also faced limitations from their own funding network. A year later, the facility was extended to an institutional investor who provided additional funding by buying select debtors on an uncommitted basis. Executing both portions of the transaction with CRX Markets delivered tangible results:
Get a closer look into the strategy here.
Tailored Solutions for Leading Automotive Companies
CRX Markets has helped top European OEMs and tier-1 suppliers strengthen liquidity and unlock millions in working capital. Their marketplace delivers independent liquidity, competitive pricing, seamless automation, and superior execution. Here’s how:
The Road Ahead for Treasury Optimization
As the automotive industry continues to navigate economic uncertainty, supply chain volatility, and the demands of rapid transformation, one thing is clear: liquidity and financial flexibility have become strategic imperatives. OEMs and suppliers that embrace innovative financing models like supply chain finance and receivables finance are better positioned to withstand disruptions, support critical supplier relationships, and invest in long-term growth.
CRX Markets is leading this shift by offering a digital marketplace customized to the unique complexities of the automotive sector. Their marketplace connects corporates with the broadest network of financing partners through a scalable, transparent model. Backed by first-class execution and tailored structures, CRX Markets empowers treasury leaders to achieve agility, resilience, and sustainable growth.
Read the full case studies below and explore the strategies behind Mercedes-Benz and Tier 1 Automotive Suppliers based near Stuttgart, Munich, and beyond.
The former Daimler AG was running a well-established reverse factoring program a large bank, but it was not scalable any further.
A- rated Commercial Vehicle & Rail Systems Supplier
EUR 2bn+ outstanding
Multi-jurisdiction and currency
BB+ rated Automotive Supplier
EUR 2bn+ outstanding
Multi-jurisdiction and currency
Sub-IG Automotive Supplier
EUR 2bn+ outstanding
Multi-jurisdiction and currency
