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Auto Deals Around The Globe Appear To Be Doubled In 2018, Said PwC

The mergers in the auto industry were more than twice to a record $97.5 Billion in 2018 over the same period last year driven by major auto parts deals, according to a report released by consultancy firm PwC on Thursday.

Five large deals totaling $42 Billion in the component vendor segment accounted for 43% of the total value of mergers and acquisitions in the previous year as companies invested to keep up with the shift from car manufacturers to autonomous vehicles, electric vehicles, and connected cars, the report stated.

Cross-border M&A slowed in 2018 due to heightened trade tensions and less attention to geographic development, PwC said. The number of deal valued at more than $1 Billion at 20 was the highest ever reported by PwC, and more than double the average of the previous three years. The accessibility of capital and the pace of change in the industry are expected to lead to strong mergers and acquisitions this year despite macroeconomic obstacles, according to the report.

In addition, vehicle manufacturers and suppliers across Asia and Europe are also suggested to stay geared up for massive disruptions. Previously in December 2017, CEO of Bosch, Volkmar Denner signaled about the sluggish growth. He stated that this would be an outcome of forthcoming hold back in China along with changing trends of combustion engines and its alteration.

The global auto industry has successfully achieved a way to resolve the short-term concerns by fast-tracking part tooling and supplies to modify some novel test methods, especially in Europe. Moreover, the companies are stimulating themselves towards long-terms headwinds around the globe. There is one more change which will be executed by OEM that is reduction of vehicles that are sources of CO2 emissions.

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Brad Holbrook

When it comes to numbers and share market, Brad Holbrook is the right person to contact. He has a done MBA in Finance and also bags an experience of 5+ years in the industry. In addition to, he also looks after the accounts at ZMR Industry Journal. It is obvious from all these facts that Brad looks after the Business department. In his free time Brad tells that he loves to spend time with his wife and wishes to go to Maldives on long vacation.

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