F&I Management & Training

Thee automotive industry is set for a period of "profound shifts and challenges", according to a study by PricewaterhouseCoopers.

Increasing fuel costs, CO2 emissions reductions, fluctuating exchange rates, shifts in consumer behaviour and a challenging economic climate are just some of the issues facing the automotive industry the latest PricewaterhouseCoopers report Global Automotive Perspectives 2008 found.

"The outlook for the global automotive market is challenging to say the least. Manufacturers and suppliers need to be preparing themselves to survive the intensity of competitive pressures," said Philippe Vincent, PwC partner.

"Great opportunities exist for the automakers and suppliers who will be able to deliver solutions to this structural industry transformation.

"A clear challenge lies in the ability of western automakers to adapt to the clear dichotomy existing between the established, mature markets and emerging markets."

PwC said a successful strategy for carmakers would be to adopt separate approaches to the two markets and establish themselves securely in mature markets before moving onto emerging ones.

The report said the approach should be adopted quickly as PwC predicted that from 2007 to 2015 emerging markets will represent 18 times the estimated growth in light vehicle assembly than mature ones.

"In mature markets, it is about managing what goes on beneath a static surface -- in emerging markets' dynamic environments, companies must strategically position themselves to benefit from growth opportunities," said a PwC spokesman.

"Those managing location issues with the concomitant capacity, together with a product portfolio that addresses anomalous market needs at the most attractive cost, will profit from the challenging global environment."

The report also found that despite its falling sales in the US and Europe, Toyota was currently executing the most balanced global strategy.

By 2015, PwC forecast Toyota to remain the leading global alliance group with a forecast light vehicle output of 11.3 million.

General Motors will experience the next biggest rise due to its success in quickly establishing a strong presence in several emerging markets.

The Renault-Nissan alliance, which PwC predicted would move from fifth in the rankings to third, due to to its large stake in AvtoVAZ and the continuing success of its Logan line of low-cost vehicles.

DATED: 03.10.08

FEED: MT

# posted by Profit Training Ltd : 9:12 am