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Automotive Update: Fourth Quarter 2009

Deloitte Corporate Finance LLC



This 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:

  • Compared to Q4 2008, auto production volumes increased 5.8% globally in Q4 2009, showing signs of sector recovery. Additionally, J.D. Power and Associates estimates 2.45 million units will be produced in Q1 2010, an 11.4% increase over Q1 2009.
  • Disclosed deal multiples in the auto sector would indicate improvement, as EBITDA multiples increased from 4.7x in 2008 to 7.0x in 2009. However, in general it remains difficult to read into this data, as most deals are currently being priced off of distressed asset values given the market’s distaste for intangible asset values.
  • November and December’s vehicle sales injected optimism in the industry, with seasonally adjusted sales rates of 10.9 and 11.3 million units, respectively. December’s sales were up approximately 15% compared to the same month last year, and industry analysts expect the trend to continue into 2010.

Download the Automotive Update below.

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