Mechanical properties of galvannealed (GA) steel sheet used for automotive exposed panel and predicted failure phenomenon of its coating layer were evaluated using finite element method. V-bending test was performed to understand better the fracture of coating layer of GA steel sheet during plastic deformation. Yield strength of the coating layer was calculated by using a relative difference between hardness of coating layer measured from the nano-indentation test and that of substrate. To measure shearing strength at the interface between substrate and coating layer, shearing test with two specimens attached by an adhesive was carried out. Using the mechanical properties measured, a series of finite element analyses coupled with a failure model was performed. Results reveal that the fracture of coating layer occurs in an irregular manner at the region where compressive deformation is dominant. Meanwhile, a series of vertical cracks perpendicular to material surface are observed at the tensile stressed-region. It is found that 0.26-0.28 of local equivalent plastic strain exists at the coating and substrate at the beginning of failure. The fracture of coating layer depends on ductility of the coating layer considerably as well. Mechanical properties of galvannealed (GA) steel sheet used for automotive exposed panel and predicted failure phenomenon phenomenon of its coating layer were evaluated as finite element method. V-bending test was performed to understand better the fracture of coating layer of GA steel sheet during plastic deformation . Yield strength of the coating layer was calculated by using a relative difference between hardness of coating layer from the nano-indentation test and that of substrate. by the mechanical properties measured, a series of finite element analyzes coupled with a failure model was performed. Results reveal that the fracture of coating layer occurs in an irregular manner at the region where compressive deformation is dominant , a series of vertical cracks perpendicular to the material surface are observed at the tensile stressed-region. It is found that 0.26-0.28 of local equivalent plastic strain exists at the coating and substrate at the beginning of failure. The fracture of coating layer depends on ductility of the coating layer considerably as well.