Whether you are rebuilding a Ford Mustang, trying to compare the ride of a Mercedes and a Lexus, or seeking to sell your automotive parts manufacturing company, Justin Mirro is a handy person to know.

The Detroit native and auto enthusiast has been around the auto business his entire professional life. He's worked as a test driver for Car and Driver magazine; as an engineer for General Motors Co. and  Toyota Motor Corp.; and as an industry banker at ABN Amro Bank NV, Salomon Smith Barney, Schroder Wertheim & Co., Jefferies  & Co. and Moelis & Co.

In June, he joined RBC Capital Markets in New York to head its new U.S. automotive investment banking group, part of the Canadian bank's push to build its investment banking presence in various sectors.

Mirro, 42, comes to RBC at a time when the auto industry is showing signs of life following the dramatic, government-assisted 2008 restructurings of General Motors Corp. and Chrysler LLC that rippled through the supplier base.

Mirro recently discussed the state of the auto industry, its outlook for dealmaking and his move to RBC with The Deal magazine.

The Deal magazine: The auto industry has been through a well-documented period of turmoil in recent years. Have we finally moved past that?

Justin Mirro: We've come a long way. When I began my banking career in Detroit back in the 1990s, it was all about M&A, equity offerings and high yield, but following that, yes, we entered a period of substantial restructuring. Now my automotive clients have retooled their operations and are doing well. Most suppliers restructured to break even at reduced production levels, and now everyone is making money, and they are looking for capital to grow.

The restructuring was depressing on one hand but refreshing too to see the supply base address their overcapacity and other issues. We have today a robust supplier base in North America.

Will that growth come in the form of ­mergers and acquisitions?

It's a case-by-case basis. Historically in the sector, capital expenses equal between 4% and 6% of sales, but right now some companies are spending upwards of 10% of sales because they are winning new programs. The automakers, after a few years of restructuring where they did not introduce a lot of new models, are now pushing new vehicles, causing a need for suppliers to buy new equipment and retool their machinery.

There is an interest in dealmaking in certain sectors, like electronics, where there is demand for talent and new products. And we also have M&A activity heating up because capital markets, and in particular debt markets, have opened up. A lot of the sponsors who have owned auto assets are looking at the markets and deciding now is a good time to sell. There are some strategic buyers who might not be looking to consolidate, but they are seeing businesses go on the market and don't want those businesses going to a competitor or another sponsor, so they are deciding to make a run at it themselves.

At Moelis & Co., you advised a Chinese entity in its purchase of the Nexteer Automotive business of General Motors for a reported $450 million. The deal stands out as one of the few of many rumored involving potential Chinese suitors to actually be completed. What can be learned from that transaction?

It was a landmark deal, I think, and the lesson to be learned is that the Chinese are for real and can close even a complex deal. This was a full-blown auction where you are buying an asset from its single biggest customer that required a lot of structuring and a lot of patience to get done. I think it was a real eye opener for Western companies.

The reason the Nexteer deal got done while others fell apart is Nexteer relied on technology and a global footprint. This is a business with over 1,000 patents and an army of engineers, and fit well with the Chinese push to shift their model from being a contract manufacturing country to a global brand with technology.

Why the move to RBC?

Clients always say they like unbiased advice, but still want the full arsenal of services a bigger bank such as the Royal Bank of Canada can offer. The platform at RBC Capital Markets offers both. RBC has built an entire framework of tools for clients, and they are turning on the faucets by hiring industry guys like me who can utilize that platform they put in place.

This is a firm that has been prudent and has been working very closely with the auto industry for many years, lending to the likes of GM, so there are strong relationships.

For several years, RBC has had one of the best credit ratings of any financial institution in North America, which is greatly important for automotive lenders. I can meet with a client and discuss an accounts receivable securitization program or something similar, and we are the best. That is a big feather in the cap.