ABSTRACT
Prior to the discussion of how private equity-led takeovers have developed in this potentially explosive field, this chapter will chart the past course of acquisitions by private equity enterprises of automotive suppliers in Germany. On the other hand, the favouring of the 3rd tier suppliers is also an expression of the buy-and-build strategy. Overall it can be said that, with this course of acquisition, the private equity companies played an active and strategic role whose ambition it was to change the value creation structures in the supplier industry. The approach followed here instead posits that the limits of the business model have been harshly exposed by the tightly interwoven, systemically integrated production model of the German automotive supplier industry. The chapter concludes with considerations on the prospects for the future development of private equity in the automotive supplier sector.
