2016 Outlook For Automotive M & A

The goal of this consulting report is to analyze the strategy for General Motors. To start, a five forces analysis of the automobile industry was conducted. The five forces include the following factors: competition among rivals, threat of new entrants, supplier power, buyer power, threat of substitutes, and role of complements. Understanding the influence of each of these factors provides insight into the attractiveness of the automobile industry. Such an understanding is necessary for an effective critique of General Motors’ strategy for the future.

In the hyper competitive world of today’s mega corporations controlled by the sway of the stock market, giant old industrial era companies rule over the automobile market in the United States as well as large parts of the global automobile market. Companies such as General Motors, Chrysler, and Ford were at the center of it until the economic crisis now known as the Great Recession of the late 2000s. The whole market was declining in sales with General Motors and Chrysler taking the biggest hits while Ford only suffered decline comparable to foreign automakers’, Honda and Toyota, levels due to restructuring in prior years. However, the tipping point was edging closer to bankruptcy with General Motors and Chrysler that ultimately

* France 's Vivendi acquired American video game maker Activision for about $9.8 billion, the largest American M&A deal since the credit crunch took hold in July, reflects a growing trend, experts say (Pantin 2008). Richard Peterson, stated "They show that foreign buyers perceive value in the U.S. marketplace, and are willing to put their capital in U.S. operations." The increase in foreign acquisitions is helping sustain America 's economy by bringing in additional capital and adding jobs, according to a new report published

Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. As an oligopoly market, the auto industry is highly dependent on strategic decision-making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition, possibilities of turning substitutes into compliments, and shifts toward higher demand in services are seemingly leading factors that face the current automotive industry in the immediate future. But first, we should not ignore the political forces at play within the market.

Of these 212 firms, only 156 of these mergers had compustat data on acquirer’s past and future R&D intensity. R&D intensity is derived by dividing the R&D by the total revenues of the firm. After consolidating these 156 mergers we determined which mergers saw a positive change in R&D intensity. Of the 156, 102 mergers saw a positive change in R&D intensity. From this point on we will focus only on these positive changes in R&D intensity and look at how CARs relate to them. The main objective is to look at the sign of the CARs not the magnitude, meaning is the CAR negative or positive, not big or

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

This shows that the employment situation of the economy is favorable and thus, there is no cause for worry with regard to economic performance and development. The economy was growing appropriately due to the growth in the automobile industry (Allcott, & Wozny, 2014). The growth in the automobile industry is critical towards revealing the strengthening of the economy appropriately.

What are the current M&A trends and potential outlook in automotive aftermarket categorized by horizontal vs vertical integration?

Good economy is great for the American motor vehicles so there should be measures that would make sure that the economy is well taken care of in the near future. The PESTEL strategic analysis of the motor vehicle industry indicates an upward direction that is very important for the overall growth in the long run (Vlasic). Mary T. Barra is one of the best managers in the motor vehicle manufacturing because she has managed to make General Motors to be the giant motor vehicle company that it was in the past. The economic concept is very important in this case because it provides an opportunity for a better future so that we can achieve the level of involvement with the stakeholders and the expansion efforts to reach the world market like African countries and the Middle

Since 1960, the number of car manufacturers decreased from 42 to 17 and the market has been controlled by several big brands (case study 0773; 15). In the competitive environment, small companies in automotive industry had may face risk of being takeover. In 1998, among the 17 manufactures, Mercedes-Benz was the 15th largest and Mercedes-Benz was the 15th largest (case study 0773; 3). Both of the companies’ sales volume was much smaller than the largest producer. Thus, with the situation of global consolidation, the merger should benefit both

Autotech company is an automotive manufacturing and supply company. It has started its business as a family business. Nowadays it is one of the fast growing automotive companies. Currently it is facing complex operation of its business as it keeps all records such as billing, inventory, personnel, customers, products, stock, financial etc. in hard copy format such as files, note, books etc. It is very tough to maintain files, papers, notes manually for an extensive time, which is time consuming, costly as well not accurate as paper work is required more time and their maintenance cost is more than soft copy storage and maintenance. As per my point of view, Autotech needs to develop Information Systems in its business to make easy and

The financial crisis starting in 2008 and the following recession hit hard the US auto sector. Traditional car makers had to realise that substantial changes were needed in order to maintain their strong position in the

The United States Automotive industry has been dominated by five major auto manufacturers: GM, Toyota, Ford, Chrysler, and Honda. As globalization increases the domestic automotive market (GM, Ford, Chrysler) suffers from foreign competitors. Although with high entrance barriers the market suffers little to none from new entries. There are several reasons for this the largest being capital. It takes a lot of capital to obtain manufacturing plants, raw materials, as well as to hire and train employees. PASTEL Analysis

The company understands the risks for working with U.S. auto industry especially during the recession in 2008, so they venture out to produce four new business units to minimize it by looking into investing on early-stage opportunities.

The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging