Global automotive deals insights: Year-end 2018

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Executive summary

2018 was a record year for deal value in the global automotive sector, with $97.5 billion announced, doubling the previous year’s value of $48.4 billion. The year was driven by five megadeals—accounting for 43% of total value as component suppliers continue to invest in key technologies of the future and further consolidate for scale. In 2018 there were 20 deals in excess of $1 billion—more than double the average witnessed over the last three years. While macro factors could cause head winds in the new year, the availability of capital and pace of change in the industry should lead to a strong M&A environment in 2019.

Key trends and highlights

  • Megadeals drove deal value in 2018. Deal value more than doubled to $97.5 billion for the year, despite flat deal volume. There were five megadeals in 2018, all within the Parts and Components manufacturing sub-sector.
  • Average disclosed deal size during the year was $286.8 million, representing 74% growth over 2017, driven by megadeals and overall higher valuation multiples.
  • Cross-border activity saw a slowdown in 2018—driven by increased trade tensions and less focus on geographic expansion versus product expansion and scale.
  • Private equity invested heavily in Automotive in 2018, a sign that there are opportunities to further drive value in the sector in the coming years.

“New technologies and economies of scale drive automotive deals in 2018.”

Jeff Zaleski, US Automotive Deals Leader

Contact us

Jeff Zaleski

US Automotive Deals Leader, PwC US

Tel: +1 (313) 394 3525

Ray Telang

Automotive Leader, PwC US

Tel: +1 (313) 394 6738

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