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Hitachi Automotive Systems, a global mega supplier in the making

Analysis
Mergers and Acquisitions

Consolidation in the automotive supplier industry is expected to continue due to the challenges companies are facing, in terms of technological know-how and rising cost, in independently developing new value-added solutions, driven by trends such as electrification and autonomous driving

Automakers and suppliers are joining forces to deal with the immense challenges created by megatrends such as connected cars, electrification, and autonomous driving. Today, there are hardly any automaker which is not investing in these fields. For new innovations with regards to these megatrends and to better serve their customers, suppliers are required to make sizeable investments in research and development (R&D), which may not be feasible for many of them individually. This is leading to an unprecedented level of collaboration as well as consolidation among automotive suppliers.

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