Swedish shipping giant Wallenius Wilhelmsen has acquired the car carrier business of the Hyundai group. As consolidation among vehicle manufacturers continues, the competitive pressure on their suppliers also increases.
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The result has been continued consolidation among suppliers, as this agreement to acquire a majority stake in the car carrier business of Hyundai for $1.3 billion proves.
Consolidation has been a major and continuing trend in the vehicle manufacturing sector in recent years, including last weeks’ agreements between the commercial vehicle operations of DaimlerChrysler, Mitsubishi Trucks and Hyundai. Additionally, vehicle manufacturers’ margins remain very tight, and under significant pressure.
A dwindling number of increasingly large clients, all intensively looking to cut costs spells potential difficulties for vehicle manufacturers’ suppliers. Again, significant consolidation has been the knock-on effect.
While most of the attention has focused on the component suppliers, the automotive logistics market has also been affected.
On agreeing to acquire an 80% stake in Hyundai’s car transport business, Wallenius Wilhelmsen stated that its clients were getting fewer and larger and were looking for a faster service at lower cost. Only larger suppliers will be able to fulfil vehicle manufacturers’ requirements.
Wallenius Wilhelmsen recently increased its share of Compagnie d’Affretement et de Transport (CAT), formerly the in-house logistics unit of Renault, to 40%. The two deals illustrate its desire to be a leader in its field – and profit from scale.
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