Industry trends generally involve two developments: competition and globalization. The automotive industry worldwide is characterized by intense competition as more producers enter new markets around the globe. The Big Three automobile manufacturers face fierce competition from foreign carmakers. Profit margins have been reduced by escalating costs for raw materials and energy, but also by rising employee costs, such as healthcare and retirement benefits.

Since 2004, U.S. gasoline prices have escalated. Higher prices continue to significantly impact purchase decisions, taking their toll on the sales of full-size sport-utility vehicles, while aiding sales of crossover utility and hybrid vehicles. With overall improved quality, buyers are inclined to use price to differentiate similar offerings. Well informed consumers have learned to drive a hard bargain when it comes to the purchase of a vehicle.

VRC provides automotive manufacturers and suppliers with valuations of real and personal property, as well as intangible assets. Typically our clients have a significant investment in plant, equipment and technology. Our professionals have significant expertise with these specialized assets and provide value-added benefits in conducting their work. This expertise is demonstrated in our firm’s ability to undertake and execute sophisticated multilocation engagements in a highly supportable and cost effective manner. In addition, we have developed an intellectual property practice which is skilled in the valuation of patented and unpatented technology for acquisition and transfer pricing purposes.