As auto suppliers convalesce from 18 months of COVID-19 shutdowns and microchip shortages, more private equity firms are looking to snatch them up. And private equity firms are increasingly willing to pay higher prices if it means getting a crack at participating in the industry's historic shift to electric vehicles and autonomous driving.
"This is a big year for financial investors in the automotive space," said Dietmar Ostermann, U.S. automotive advisory leader for the international financial advisory firm PwC. "More PE firms are entering the automotive space because they see this interesting technology revolution taking place in electric vehicles and connected cars. And there is a feeling among some of them that they're smarter than the auto industry because automotive isn't used to dealing with big change.
"They want in."