With turbulence in the UK car manufacturing industry due to Brexit, we decided to take an objective look at the industry to see what impact any further trading difficulties might have.
Since 2017, the industry’s average growth has dropped from 13.1% to 1.8% based on our analysis of UK Car Manufacturers. Over 50% of the industry is already rated as either ‘in danger’ or ‘caution’. The average values for companies within the UK Car Manufacturing industry also dropped by 9.6% last year.
Although things look a little bleak for the industry, certainly if Brexit instability takes any further tole on it, there could be a light at the end of the tunnel for some companies.
There are 12 companies in the analysis that Plimsoll have rated as ‘highly attractive’ for acquisition, as well as a further 36 that ‘worth considering’. We could see some consolidation in the industry in the coming year with struggling companies being bought out by industry leaders.
With a cash injection, refinancing of debt and an existing supply chain to benefit from, ‘highly attractive’ companies could make a swift and significant impact to the growth of suitors.
To view which companies are included, or to subscribe to the UK Car Manufacturers analysis, click here.