I’m really concern about the M&A in the automotive industry due to the uncertainty moment that we are living. Personaly I think that the automakers really don’t know where they want to go in the next years, so this situation is affecting to the all the chain of the suppliers. Now the acquisitions are growing slowy and the mergers fastly.
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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