Knowledge@wharton

The turmoil and uncertainty among auto manufacturers and their suppliers have left people wondering when a shakeout can be expected. According to Wharton management professor John Paul MacDuffie and Christopher Benko director of the PricewaterhouseCoopers Automotive Institute in Detroit consolidation will take place among suppliers to a much greater extent than among carmakers which may not experience mergers and acquisitions at all in the near term but will be engaged in ever-shifting strategic alliances and joint ventures. Additionally these experts say many Western parts suppliers are under immense pressure from lower-cost Chinese parts producers and need to consolidate to strengthen their chances of survival. See acast.com/privacy for privacy and opt-out information.