Stefan Wolf, head of German automotive supplier ElringKlinger, believes companies could find themselves in financial difficulties unless vehicle manufacturers and vendors co-operate more closely.

He told Financial Times Deutschland German carmakers are increasingly trying to push costs related to production and research and development forward to suppliers, which leads to price wars in which both interdependent industries could fall victim.

Wolf stressed that firms with less equity - such as suppliers compared with car manufacturers – get into problems very quickly.

He added that the carmakers should also have provided more financial help to suppliers during the last economic crisis.

Wolf did not rule out any acquisitions in the auto parts making sector and said ElringKlinger is currently looking to buy.