This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Automotive Deals Stall In 2012 Compared To 2011, According To PwC

DETROIT, April 2, 2013 /PRNewswire/ -- Automotive mergers and acquisitions (M&A) activity in the first half of 2012 has given way to macroeconomic pressures, resulting in passive M&A activity in 2012 overall, PwC reports in Driving Value: Automotive M&A Insights 2012. The automotive industry's overall M&A deal volume declined 18 percent and deal value declined by 33 percent, compared to 2011. In comparison, in 2012, global cross-sector M&A activity declined less than the automotive sector, with deal volumes declining by seven percent and deal value declining by 17 percent compared to 2011.

(Logo: )

While some regions continue to show signs of stabilization and profitability after the recession in 2008-2009, the economic crisis in Europe is still an ongoing issue of concern. Europe's share of global automotive deal volumes is down for the second straight year, while Asia continues to grow its presence, becoming the largest acquirer region in 2012.

With Europe's debt crisis weighing heavily on the European automotive sector, automotive M&A activity declined in terms of deal volume and value when compared to 2011, when a total of 594 deals were completed for a disclosed value of $44.9 billion. The automotive sector transacted 98 deals during Q4 2012, marking the third straight quarter of decreasing deal volume.

"Uncertainty is hurting the deal value more than the actual recession," said Paul Elie, U.S. automotive transaction services leader. "There is increased speculation resulting from the looming economic challenges in Europe and many unknowns in the regulatory environment. As soon as the macroeconomic environment improves, we likely will see a wave of pent-up demand resulting in increased deal activity."

(Photo: )

The PwC report shows:

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs