Automotive Capital Confidence Barometer

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With a recovery taking longer than expected to arrive, companies are focusing on bottom-line improvements.

Our sixth Capital Confidence Barometer in the automotive industry finds that leading companies have become less optimistic about the global economy over the past six months, with only 22% viewing the global economy as improving versus 58% six months ago.

Given the continuing Eurozone crisis, which 90% of respondents say has impacted their business, and slowing growth in emerging markets, the focus on both organic and inorganic growth aspirations has waned.

As much as we would like to view this as a near-term hurdle, 68% of respondents expect the downturn to persist for more than one year.

General survey highlights include:

  • 78% think the global economy shows no sign of improvement
  • 68% expect the downturn to persist for more than one year
  • 33% are positive about earnings, compared with 40% six months ago
  • 77% view credit availability as stable or improving compared with 85% six months ago
  • Appetite for M&A falls to 19% from 39% a year ago
  • Intention to divest down to 16% from 23% a year ago
Pip McCrostie Pip McCrostie
Global Vice Chair,
Transaction Advisory Services
Jim Carter Jim Carter
Americas Automotive Industry Leader,
Transaction Advisory Services