BGL Industrials Insider

Technology Fuels M&A in Automotive

The automotive industry is undergoing transformation, creating opportunities for innovative, technology-led companies, according to the Industrials Insider, an industry report released by Brown Gibbons Lang & Company (BGL).

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Managing Director

An “automotive revolution” is predicted over the next decade, as tighter emissions and fuel economy standards and changing consumer preferences drive increased demand for vehicle electrification, autonomy, and lightweighting. Market participants are bracing for technology changes, a seismic shift that is accelerating portfolio reviews and strategic investments to capitalize on the transition to electric and self-driving vehicles. Technology-driven M&A will drive deal activity across the value chain as companies look to stay viable in the innovation race.

  • Ford (Princeton Lightwave), General Motors (Strobe), Aptiv (nuTonomy), and Magna International (Innoviz Technologies) are among the large auto companies to recently make acquisitions or investments in developers of LIDAR sensors—critical technology needed to commercialize production of autonomous vehicles.
  • Automakers are investing in a broad range of technologies as the market migrates from traditional gasoline and diesel internal combustion engines to hybrid and electric. BorgWarner acquired Sevcon, a manufacturer of controllers and system components for electrically powered vehicles, to build its capabilities in electric propulsion systems.
  • Global CO2 and fuel economy regulations are driving increased demand for lightweight materials. AK Steel acquired Precision Partners, which specializes in lightweighting and complex metal components, to broaden its platform for innovative lightweight steel solutions in the automotive market.

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