How to Share Manufacturing Network Losses in the Face of COVID-19

07 October 2020
Dr. Yves Hervé and Philip de Homont

In a new article published in International Tax Review, NERA Economic Consulting Managing Director Dr. Yves Hervé and Director Philip de Homont explain how multinationals can plan to mitigate losses in their manufacturing transfer pricing model in the face of COVID-19. The authors explain why the decline of manufacturing sites’ capacity utilisation will make a severe dent in the profitability of multinationals and, in many cases, trigger losses. They then advise on how to react to this utilisation problem and highlight why it requires a global master plan that cannot be left to the discretion of local entities.