Consolidation trend in the interior sector: review and outlook

Acquisition, divestment & Spinoff

Such moves hint at a major strategy change in how market participants seek to grow their business in the long run

The automotive interior sector is going through a spate of consolidation moves, ranging from medium-sized to large acquisitions as well as exits, all of which have impacted the supplier landscape and industry stakeholders at large. Although most of these moves appear to have been driven by independent corporate strategies, a general sense is that companies are coming to terms with their inability to scale up their presence in the interior sector or achieve meaningful profitability and are therefore deciding to divest. On the other hand, some companies are now eyeing an opportunity to specialize and strengthen their expertise in a niche product rather than continuing to operate in all interior areas. The latest market moves have shown, for example, Lear’s intention to take on Adient’s leadership in the seating sector, by acquiring Grupo Antolin's automotive seating business (having annual sales of approximately USD322 million), effectively earning Lear business with European automakers including PSA, Daimler, Renault Nissan and Volkswagen.

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