The Impact of Establishing Partnerships on Manufacturing Firms’ Working Capital in the Automotive Industry

This paper "The Impact of Establishing Partnerships on Manufacturing Firms’ Working Capital in the Automotive Industry" analyzes and explains how entities such as banks, suppliers, factoring companies, and car dealers, effect the Working Capital of automakers. The impacts these entities have are reflected on cash, accounts receivables, account payable, and inventories that car manufacturers report in their Balance sheets. The thesis explains how car manufacturers can enjoy a better Working Capital and Cash conversion cycle by taking advantage of different types of partnerships with these entities. Volkswagen, FCA, GM, and BMW have been analyzed in detail to answer these questions. The result is that these entities have huge impacts on WC and their relationships with automakers it is crucial for the latter to be competitive in the industry.