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Automotive Update: First Quarter 2010

Deloitte Corporate Finance LLC


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DCF Automotive UpdateThis quarter’s Automotive Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry. 

 

This quarter’s highlights include:

  • Q1 2010 brought some much need stability to domestic automotive industry’s OEMs and supplier base in the form of increased sales and production volumes. According to J.D. Power and Associates, the March 2010 SAAR was approximately 12 million vehicles, while North American production reached 2.9 million vehicles in Q1 2010, representing increases of 25% and 30%, respectively, when compared to Q1 2009.
  • M&A activity also demonstrated signs of recovery in the first quarter. In Q1 2010, 144 total deals were announced at an average value of $193 million, which represent year-over-year increases of 18% and 62%, respectively.
  • M&A activity is expected to continue to return gradually to the automotive sector, as cash-strapped OEMs and suppliers in North America look to Asian and other well-financed buyers to monetize orphaned brands or operating subsidiaries in order to focus on core operations.

Download the Automotive Update below.

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