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Automotive Update: Second Quarter 2009

Deloitte Corporate Finance LLC


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:

  • In the first half of 2009, 13 major U.S. direct suppliers and two indirect suppliers have filed for Chapter 11 bankruptcy or have had their assets foreclosed, while many others have simply liquidated according to the Original Equipment Suppliers Association (OESA).
  • Despite the U.S. Government’s $140 billion investment in the automotive OEMs, it is anticipated that there will be suppliers that will be unable to restart operations as OEM production resumes due to working capital short-falls.
  • Although there will likely be many challenges coupled with slow growth in the near term, the resulting transformation of the domestic OEMs and the stabilization of production volumes could present opportunities for suppliers with a diverse customer base, innovative product offerings, global production capabilities and strong balance sheets.

Download the Automotive Update below.

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