Automotive Study Foresees Decline In North American Market Share

Compiled By Jill Jusko A wide-ranging survey of the global automotive manufacturing market spells less than good news for North American auto brands over the next five years. Just 22% of the 103 auto executives surveyed by professional services firm KPMG LLP said they believed global market share for North American brands would increase during the next five years, while 74% said that Asian brands would increase market share in that same time period. Additionally, 51% of survey respondents anticipate an increase in market share for European brands. "What it boils down to is exciting and affordable product, and executives feel better product is coming from Asian and European brands," says Brian Ambrose, national industry director of KPMG's Industrial and Automotive practice. The survey touched on a wide variety of topics of interest to the automotive industry. Other survey highlights include:

  • Thirty-six percent of executives forecast better profits in 2003, while 24% see that happening in 2004.
  • Nearly two-thirds (63%) of survey respondents expect the use of sales incentives to increase over the next five years.
  • That same percentage (63%) strongly agree that manufacturers will try to cut costs by producing fewer models and more standardized global vehicles.
  • A large majority (72%) of respondents regard new technologies as extremely important, ranking it second to economic issues but higher than consumer tastes and labor relations. The automotive survey was conducted in October and November 2001.
  • Hide comments

    Comments

    • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

    Plain text

    • No HTML tags allowed.
    • Web page addresses and e-mail addresses turn into links automatically.
    • Lines and paragraphs break automatically.
    Publish