A survey by the management consultant firm PricewaterhouseCoopers (PwC) has found that the value of mergers and acquisitions (M&A) in the automotive industry plunged by 60% last year to US$19 billion.
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PwC says that weaker economic conditions and financing problems are largely responsible for the declining trend.
Quoted in the Financial Times (FT), Philip Wylie, director of corporate finance at PwC, said: “Falling stock market valuations have further damped takeovers because the car companies, particularly the highly-leveraged US groups, cannot use equity to finance deals.”
PwC maintains that further industrial consolidation will be constrained by the absence of available companies.
