3rd ICAI 2024

International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

a company obtains by increasing or decreasing its share in a particular market, and mergers and acquisitions. To succeed in the automotive industry, you need to respond quickly to changing consumer preferences, this includes a wide variety of products (vehicles) - from internal combustion engines to hybrid vehicles and electric cars. One of the ways to rapidly expand the product portfolio is through mergers and acquisitions, which allow a company to quickly gain access to new technologies (among other benefits). A company creates value if ROIC is greater than WACC. Growth only creates value if the previous condition is met (Koller, Goedhart, Wessels, 2020). The authors further mention that if a company achieves high ROIC values, it is likely to maintain high values, but this is also true in the case of low values. On the contrary, maintaining growth is much more challenging. 2.2 Methodology The intention was to select the period least affected by economic shocks - i.e. before the Covid-19 pandemic, and at the same time a period of at least ten years, so that it would be possible to observe the evolution of variables over time and identify certain patterns. We therefore chose the period 2009 - 2019. Geographically, the market has been defined as the U.S., due to the availability of the necessary data to investigate. At the same time, publicly traded companies were chosen for the same reason. The original sample of companies included 23 entities, however, 4 entities were excluded as they were loss-making for most or all of the period under examination or did not meet other criteria for selection to the peer group. The list of selected companies can be seen in the table 1. These are manufacturing companies (except for one) that we consider large in terms of sales.

Table 1: Selected Companies

American Axle & Manufacturing Holdings, Inc.

Motorcar Parts of America, Inc. Standard Motor Products, Inc.

BorgWarner Inc. Dana Incorporated

Stoneridge, Inc.

Dorman Products, Inc. Ford Motor Company General Motors Company Gentex Corporation Gentherm Incorporated Harley-Davidson, Inc. Lear Corporation Source: authors’ elaboration

Strattec Security Corporation

Superior Industries International, Inc. The Goodyear Tire & Rubber Company

THOR Industries, Inc. Visteon Corporation Winnebago Industries, Inc.

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