PricewaterhouseCoopers expects the value of worldwide transactions across the automotive parts manufacturing sector to jump more than three times to around $48 billion from $14 billion last year.
If the forecast is reached, than 2015 would overshadow from a distance the previous record tally – achieved back in 2007 and standing at $35 billion. On the other hand, the year has seen mostly valuable transactions as their overall tally could slide from 217 last year to 201 now, added the consulting firm. PwC’s study discovered acquisitions of $500 million or more are more common as parts suppliers seek increased size – their industry consolidation follows the auto industry’s trends to deliver software and parts for autonomous driving as well as hardware to lift fuel efficiency. Strong US automotive sales, driven by booming demand for pickup trucks and SUVs are also delivering more supplier mergers and purchases. Additionally, the sector is being driven by the expansion of both global and local automakers in China as well as the recent recovery in Europe.
PwC added that following the financial crisis the suppliers have came up healthy and following half a decade of growth they have more money than ever to spend. “We’ve just had a very phenomenal stretch coming out of the downturn,” comments Dietmar Ostermann, the firm’s chief of global auto advisory practice. “The last five years have been very, very profitable throughout the auto world.” For its report, PwC used data assessing buyers, sellers and financially distressed companies.
Via Automotive News Europe