Great American understands the needs of our clients with respect to investments in the Automotive Industry. GA is keenly focused on our Auto practice and has made strategic investments to expand our capabilities to support our client base and all their advisory and valuation needs. Our over 40 years of direct OEM, Tier 1,2,3 Supplier, and Aftermarket experience helps to guide our clients through the ever changing Automotive environment.
Our hands-on operational approach is guided by our extensive experience in the automotive world including hundreds of supplier insolvencies, work outs, turnarounds, and combinations as well as divestitures of entire companies and business units. Our first-hand knowledge helps to provide a rich understanding of current state of the art technology and both short and long term planning effects of innovation, investment, and structure.
Let Great American be your partner in solidifying your investments while providing the added value of understanding short and long term risk. Areas of strategic concern where GA can help are:
- Probability of default and liquidation – GA has direct experience at the OEM level on how these complex decisions are made within any automaker. We can help advise on how to lessen the risk of potential activities.
- Bankruptcy work out and supply change scenarios – GA’s Automotive leadership has made these supply decisions and knows the overall effects on the supply business.
- Technology trends and market effects – Technology and disruptive supply situations continue to change and in today’s world it is ramping up to a level never before seen in the automotive world. Our knowledge of these innovations, the research conundrum associated with bringing new tech to market, and the eventual scalability of certain products are some of our unique capabilities. Most innovations cannot make it into the automotive realm because of the “4-box” solution set of reliability, manufacturability, scalability, and cost performance with profitable payback.
- Demographics – Young and old drivers alike are now choosing to use other methods of transport, with current trends showing newer drivers are postponing getting their driver’s license years beyond their 16th birthday. This will prove to effect long term sales trends in the US and world. GA is tracking these trends and the overall market effect.
- Ride Share and other tech platforms – Effectively, the Auto market currency is changing from vehicles sold to miles driven. As a result, many revenue models and financing models will be affected dramatically in coming years. GA is also tracking these platforms and metrics to drive its predictive models for the future.
OEMs segment the supply industry into six specific classes. These classes each have specific micro and macro-economic challenges as well as technology, timing, and platform application-specific effects that need to be understood in order to manage supply expectations and value of enterprise. These specific six areas as defined by most OEM’s are:
Within the above six areas, typical machinery and equipment (M&E) critical to the Automotive industry includes:
- Assembly lines
- Machining systems
- Casting processes
- Metal foundries
- Additive manufacturing (3D printers)
- Computer mainframes
- Complex electronics
The main categories of direct knowledge for our Automotive Practice are for all supply, technology, strategy, and valuation related to the following segments:
- OEM Manufacturers
- OEM suppliers Tier 1
- OEM suppliers Tier 2 and 3
- Aftermarket Repair (IRF – Independent Repair Facilities)
- Aftermarket accessories
- Vehicle rental companies
- Class 1-8 over the road trucks
- Military / Government vehicles
- Advance Technology – not related to vehicles
- Aerospace – overlapping tech and manufacturing
In a dynamic market, such as the Automotive industry, having the inside track on knowing how market disruptors affect inventory, M&E values, intellectual property and risk are crucial to near-term and long-term success. Great American can help you foresee and leverage broad market changes, maximize brand equity and customer lists, and more to help you remain strong in an ever-changing market. Great American can help keep your company driving forward.