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European retailer consolidation will increase – but not across EU borders - PwC

Research by PricewaterhouseCoopers into automotive M&A activity in the first nine months of 2003 shows that the retail and aftermarket sectors accounted for almost 40% of total automotive industry transaction volume. But it accounted for only for 14% of total disclosed deal value,as these transactions were in general relatively small in value.

Head of PwC's Automotive practice Philip Wylie commented, “In Europe, we expect the rate of consolidation amongst dealers to pick up following changes in legislation surrounding the control vehicle manufacturers can exert on their franchised dealers. However, this consolidation will continue to be dominated by local rather than significant cross-border transactions - economies of scale are relatively insignificant whereas cross-border management and marketing issues are significant.”

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