Jochen Schwenk has become a leading figure in risk mitigation and crisis management in the automotive industry. As the CEO of Crisis Control Solutions LLC and Schwenk AG, he has helped major car manufacturers like Porsche, Lamborghini, Audi, and Volkswagen navigate difficult situations and maintain stable supply chains.
The automotive industry is a significant contributor to the global economy. According to a 2021 report by Statista, its market size was $2.7 trillion in 2021, with projections to reach $3.8 trillion by 2028. However, this growth is accompanied by various risks and challenges that require effective crisis mitigation.
Handling Complex Crises with Strategic Planning
Schwenk‘s ability to handle complex crises is shown by his management of the powertrain cast components supply crisis. When a tier 1 supplier faced ongoing supply problems due to financial instability and poor business decisions, Schwenk led a thorough recovery plan.
He secured supply with external temporary workers, maintenance, and management, and secretly moved production to a new location. This decisive action ensured the car manufacturer avoided further production stoppages or vehicle losses.
In another case, when a German supplier of interior components faced bankruptcy, Schwenk and his team took control of securing the supply. They worked with the bankruptcy administration and risk management teams to manage the transition and phase-out of production, safeguarding the supply chain against potential disruptions.
Schwenk’s adeptness in crisis management in the automotive sector was further demonstrated by a blackmail incident involving a supplier in Bulgaria. Through careful shuttle diplomacy and strategic planning, he maintained a stable supply chain without giving in to the extortion demands.
Identifying and Prioritizing Risks
A significant part of Schwenk’s success lies in his proactive approach to identifying, evaluating, and prioritizing risks. By employing advanced analytical tools and procedures, Schwenk’s clients are protected in both a reactive and proactive manner. His future-focused strategy in identifying and prioritizing risks has been essential in protecting the interests of major car manufacturers across Europe.
A 2020 McKinsey & Company study highlights that the automotive industry is susceptible to various risks, including supply chain disruptions, technological advancements, and shifts in consumer preferences. The study notes that companies with robust risk management frameworks, like those Schwenk provides, are better equipped to navigate these challenges and maintain a competitive edge. “It’s like an EpiPen. You wish you’ll never need a crisis management team, but be glad when we’re there during an actual crisis,” Schwenk says.
Shaping the Future of Automotive Crisis Management
As the automotive industry faces unprecedented challenges in the aftermath of a grueling pandemic, the expertise of risk managers like Schwenk has become more critical than ever. According to research by IHS Markit, the COVID-19 crisis has profoundly impacted the industry, with global car sales dropping by 14% in 2021. This has led to supply chain disruptions, production delays, and financial losses for many car manufacturers.
“It’s all about building resilient systems and adapting your people to whatever comes. I teach my team this, and we offer the same model to our clients,” Schwenk explains. By identifying potential risks early and developing strategies to mitigate them, Schwenk and other risk managers are helping the automotive industry navigate crises while keeping their operations intact.
Given the automotive sector’s growth trajectory and the critical role of sophisticated risk management practices, Schwenk and his peers’ contributions are set to remain indispensable. Though the geopolitical future may be uncertain, Schwenk and other risk management experts like him prepare themselves for the inevitability of further crises.
