Situation:

Alcoa is the world’s leading producer of primary aluminum and fabricated aluminum products. With 116,000 employees in 44 countries, Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation, and industrial markets.

In 2007, Alcoa announced its decision to divest its Automotive Castings Division (AAC). AAC manufactures a full range of safety-critical automotive suspension and chassis components, including sub-frames, cradles, steering knuckles, engine brackets and control arms.  The company manufactures these products through a proprietary low-pressure casting technology at facilities in Michigan, Norway, and China.

Ameridan’s Role:

Ameridan was engaged by a leading private equity group to provide customer diligence services. Ameridan’s due-diligence engagement focused on assessing:

• The strength and stickiness of AAC’s top customer relationships;
• Major customers’ views of China and other low cost countries as sources for critical parts;
• The general business outlook and revenue forecast; and
• Perceptions of the company’s product quality, service levels, and manufacturing abilities.

Ameridan led a project team which gathered intelligence and analyzed findings from a wide variety of sources involved in the global automotive industry. Ameridan’s work included conducting primary research with industry participants in the US, Norway, and Germany.