Finance in automotive
automotive finance: capital intensity and platform amortization, thin per-unit margins, captive finance and residual value, and the EV cost curve.
Automotive finance operates on thin margins, heavy capital intensity, and long product cycles that tie up cash for years before returns materialize. This block equips you to read the financial reality behind carmakers, suppliers, and captive finance arms. You will learn how volume, mix, and platform economics drive profitability, how OEMs fund development and tooling, and how captive lending and residual values shape earnings. You will work through the sector-specific ratios, benchmarks, and cost structures that separate healthy players from distressed ones across the US and Europe. Finally, you will apply the regulatory frameworks, cyclical risks, and due-diligence checks that matter when assessing automotive companies and transactions.
Ce que vous allez maîtriser
- Read and interpret an OEM or supplier income statement and balance sheet using sector-specific margins, capital intensity, and cash conversion drivers
- Calculate and benchmark key automotive metrics such as EBIT margin per vehicle, R&D and capex intensity, breakeven volume, and captive finance penetration
- Assess residual value, warranty, and inventory risks and their impact on earnings quality and liquidity
- Perform targeted financial due diligence on an automotive target, including captive finance exposure, supplier concentration, and cyclical sensitivity