It’s not just that Fiat SpA and Chrysler Group LLC united to form the seventh-largest automaker in the world, but according to a study made by PriceWaterhouseCoopers no less than 250 mergers and acquisitions were done during the first half of 2014.
With an increase of 14% and an estimated value that rose to $27.5 billion for the completed mergers (not counting pending or just announced ones), the global automotive industry has reached a seven-year high during the first six months. The full swing of the merger and acquisition trend has impacted both automakers and their suppliers, again reshaping the highly volatile and competitive landscape. The 250 mergers and acquisition tracked and compiled by the PriceWaterhouseCoopers’ study compare to the 222 transactions made during the first half of 2013.
Still, the pace has its road cut out before reaching the climax of 2007, when the industry was crippled by the financially troubled automotive suppliers – snapped back and forth between private equity funds and other interested investors. According to the report, during the first six months of 2007 no less than 333 deals were finalized. Jeff Zaleski, a partner in deals practice and member of the automotive leadership team expects the transaction pace to surge constantly as parts and carmakers still struggle to adapt to the demands and chances arising from the emerging regions – China, Brazil or India, among others.