Corporate acquisition is considered to be an effective strategy in order to acquire market share and reduce competition in case of the automotive industry. Given the changing trends in the global automotive industry, suppliers are under tremendous pressure to carve out M&A deals. The chances of success of M&A deals in the automotive industry are much higher as compared to other industries. The fact is that many of these transactions involve companies of similar business models. Share prices for automotive suppliers jump above average on the mere 2 announcement of M&A activity.