Deloitte Sees Huge Opportunity for Suppliers – CAR MBS 2019
August 7th, 2019 at 3:10pm
SPECIAL GUEST: Neal Ganguli, Managing Director, Deloitte Consulting
Deloitte had a couple of big takeaways from its 2019 Global Automotive Supplier Study. It found that 99% of the shareholder value created by suppliers was generated by the top 3rd of companies. That means it’s a tough business for lower 2/3rds, but if they plan their strategies right (consolidate, partner, ect.) there’s still a ton of profit to be made, even in shrinking areas, like ICE and hard parts.
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Comments (1)
August 7th, 2019 at 6:47 pm
Doesn’t look good for the bottom third. Unless they consolidate soon, they will run out of money before they can make choices. Problem is how to consolidate and cut costs (mainly R&D) and still look like a viable company to partner with. Their purchase value has no growth component, only an existing sales stream.
Good opportunity for the top 1/3 to snatch up a bunch of these smaller companies as an income but not growth opportunity.