Automotive
The automotive market is diverse. It ranges from original equipment manufacturers and component manufacturers, to dealerships and commercial vehicle manufacturers. There is potential for growth across many areas, from the booming manufacturing and domestic markets in developing economies, to the research and development of 'greener' vehicles and fuels.
KPMG works with some of the largest and most successful automotive companies in the world. We offer a pro-active, forward-thinking service to our clients to help ensure that the potential for growth is not missed, and that the issues and challenges faced by the industry can be overcome.
We all know M&A volumes and values are down, but what is the outlook for the different sectors? We look in detail at the situation for the Automotive industry.
This year's Global Auto Executive survey was conducted at the end of a historic year for the auto business.
Last year we surveyed an industry that had been plunged, very suddenly, into total uncertainty. As one of the large automakers interviewed as part of this year's report said, "a year ago we were in the middle of nowhere . anything was possible.”
As our 2010 survey records, we are appear to be on our way out of that period of the crisis. Confidence is higher, while growth and new investment are moving back on the agenda.
The current recessionary climate combined with the lack of available credit, for both consumers and companies, has severely impacted the automotive industry.
The economic downturn is hitting automotive retailers at least as hard as it is affecting manufacturers. Our recent Global Dealership survey says that automotive retail is set for five years of low turnover, low margins, and most likely a long round of restructuring.
A company's location strategy should be answering the question 'what markets must our business be in?' In reality the evidence is that too often companies think in terms of where they could locate, rather than where they should locate.
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Now in its eleventh year, the 2010 survey reports on an industry emerging from one of the most turbulent years in recent decades. Manufacturers and suppliers forecast that profitability will be lower than before, investment growth will decline, and that market share for some of the biggest manufacturers will continue to shrink.
This is a regular publication which pulls together and shares our firms' industry-wide knowledge to help you quickly and easily get briefed on the issues that impact the automotive sector. This edition looks at the automotive aftermarket and the impact of the financial crisis.
