Emergence of fast evolving digital technologies, increased regulatory pressure and global economic uncertainty are key factors in the current risks landscape. KPMG Risk Consulting assists clients to develop robust risk mitigation methods by interpreting the underlying drivers of global risks.

Growth in alternative fuel market and demand for electric vehicles is pushing existing players to enter these markets or partner with new manufacturers, exposing them to increased investment, and new risks and processes.

• Increasing pressures to develop, upgrade and successfully launch and market new & innovative products to meet changing customer demand
• Increasingly rigorous environmental, health and safety laws and regulations by governments
  
• Inability to attract and retain qualified personnel while appropriately managing costs related to employee benefits
  
• Risk to reputation/brand as a result of negative assessment or comments from stakeholders
  

Macroeconomic uncertainty in key marketsfrom factors such as change of administration in the US, the UK's vote to leave the EU (Brexit), economic recession in Brazil and Russia, conflicts in the Middle East, and slowdown in China

• Impact of government policy (such as tax regimes; incentives etc.) and policy changes on investment decisions
• Reliance on a single supplier for sourcing most of the components, parts and systems, which has increased the concentration of risk
  
• Risk of significant financial burden and decline in consumer confidence due to scandals including diesel emissions and price fixing
  
• Regulatory and compliance risk due to changes in international and domestic laws, rules, policies, tax regulations, technical standards and trade policies, particularly those relating to more stringent vehicle safety and environmental matters
  
• Risks related to infringement of intellectual property rights
  
• Fraud, violations of the laws tariff/policies and cross-border legislations
  

Production interruption at key plants due to raw material supply interruption, labor unrest, plant failure, resulting in operational imbalance

• Risks associated with product liability, and recalls
• Risks related to alliances and joint ventures including negative financial developments and delays in set-up

Increasing complexity of competitive landscape due to disruptive technologies from mobility providers (Uber, DidiChuxing), technology giants (Apple, Google) and specialty OEMs (Tesla)

• Growing need to invest in new and innovative materials, automation and emerging technologies in manufacturing to stay competitive
• IT risks relating to malfunction or disruption in the operation of the systems, or cyber-security breaches, could adversely impact the company's ability to compete

Adverse movements in interest rates and exchange rates

• Risks and costs associated with downgrade in credit ratings which have a negative impact on the ability to obtain external financing
• Increased competition in automobile financing and associated risks such as borrowers’ worsening creditworthiness may lead to decreased margins