Reply To: M&A in the automotive industry


Karl Heinz Foertsch

Consolidation in the whole automotive industry (including supply chain) will continue. Mainly emission norms and regulations will drive the consolidation in the market.
OEMs and suppliers need to manage the technological stretch between the existing “traditional powertrain” (internal combustion engine) to fully electrified vehicles. This technological stretch is extremely capital intensive and many companies especially medium- and small-sized suppliers will need to merge or get acquired by bigger tier suppliers in order to survive.

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