| The automotive industry worldwide
is more optimistic at the start of 2008 than it has been for some years,
says the annual survey of industry executives by business advice group
KPMG.
KPMG says major automotive companies are far from out of the woods, but
they are now more confident that they are heading in the right direction.
Mike Steventon, head of automotive for KPMG in the UK, said: “The
industry knows where it is and knows where it needs to be. It needs to
produce quality vehicles that are fuel efficient, especially in this economic
cycle, and it needs to invest heavily in developing alternative fuels.”
KPMG surveyed 113 top executives from vehicle manufacturers and suppliers
worldwide. It found 26% thought that profits would rise over the next
five years, while 14% thought profits would fall. This contrasts with
gloom two years ago when only 16% saw profits rising and 28% saw a decline.
But more than a third see continuing volatility in markets.
Automotive executives see hybrid systems and fuel cell technology as the
most pressing technology issues for the next five years. But new technologies
are only the third most important issue: they come after product quality
and reducing costs as priorities for the industry, KPMG said.
Steventon said competition was fuelling optimism in the industry. “Notwithstanding
the immediate difficulties for sales in the US market there is a clear
sense that executives now feel they have developed their turnaround plans
and have an increasing confidence that investments in new technologies
and product quality and initiatives to address capacity will address growth
and profitability,” he said.
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