JUNE 2026 — YCP is proud to once again be featured in the 2027 Auto Care Factbook, through a market intelligence contribution by our Partner Leon Cheng titled “Structuring for Resilience: Cross-Border M&A, Partnerships, and Supply Chain Strategy in the U.S. Aftermarket.” The Auto Care Factbook is an annual publication produced by the Auto Care Association, serving as the premier industry resource for the U.S. automotive aftermarket.
Structuring for Resilience
Leon’s article examines how companies in the U.S. aftermarket are navigating supply chain disruption through cross-border M&A and partnership activity. Drawing on verified deal data from 2022 to 2025, Leon maps out the range of structural options available to companies, from full acquisitions and joint ventures through to contract manufacturing, licensing, and distribution agreements.
Leon also introduces a practical framework for evaluating these structures, organized around a company's strategic objectives, capital position, and regulatory context across key corridors including India, Mexico, Southeast Asia, and Japan. It also covers execution considerations such as governance design, supplier qualification, and cross-border interface management, giving readers a concrete reference point for structuring their own partnerships.
The Bigger Picture
The U.S. automotive aftermarket reached USD 413.7 billion in 2024 and is projected to grow to USD 547 billion by 2028. The industry is simultaneously navigating a period of significant structural disruption, with recent tariff rounds adding billions in incremental import duties and reshaping how companies think about their supply chains. Cross-border M&A and partnership activity has responded in kind, making the strategic frameworks Leon outlines in the Factbook increasingly relevant for companies looking to build long-term resilience in an uncertain environment.
A full copy of the 2027 Auto Care Factbook can be downloaded at digital.autocare.org.
About Our Expert
Leon Cheng is a Partner at YCP and leads the firm’s global Mobility practice. He has extensive experience in strategy formulation, M&A, and supply chain consulting, advising international MNCs and mid-sized enterprises on expansion strategies across automotive, construction, healthcare, and industrial sectors in North America and emerging markets. He also serves as a member of the Auto Care Association Market Intelligence Committee.
