DETROIT -- Mergers and acquisitions will rise in the next five years, especially in Asia and mostly among suppliers, according to a study by KPMG LLP, a tax audit and advisory firm.
As merger-and-acquisition activity increases, strategic alliances will decrease because they are difficult to manage, the survey predicts.
New York-based KPMG surveyed automakers and Tier 1 and Tier 2 suppliers in North America, Europe and Asia.
Most of the executives surveyed expect the consolidation to take place among suppliers who face mounting pressure to reduce prices while improving quality and innovation.
Of 100 senior executives surveyed, 73 expect an increase in consolidation in Asia. Sixty executives predicted an increase in Europe, and 50 executives expect an increase in North America in the next five years.