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Considering these disparate pressures on prices, there is no such thing as a straightforward method that OEMs or suppliers can use to enhance their return on capital. The solution will seemingly come from a mix of actions. Part of the reply lies in consolidation, which reduces industry capital requirements by eliminating competitors and combining two manufacturing and design footprints into one. To a degree, these targets explain 2016’s strong provider M&A volume, persevering with the pattern of the previous yr’s record deal value, in response to PwC’s World Automotive M&A Deals Insights Year-end 2016 report.
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