KPMG Global Auto Survey

For those of you interested in the global auto industry, you might find KPMG's new global survey to be of interest.

Among the notable trends, shifts, and strong perceptions were the following:

• Global overcapacity was less of a concern than in previous years.
• Japanese sales growth is maturing; market-share gains will come from
Korean and, eventually, Chinese brands.
• Foreign maker and supplier investment in China will increase, but profits
there might come under pressure. An eventual vehicle-maker shakeout in
China appears likely.
• North American makers’ loss of global market share will slow.
• Sales incentives are here to stay but won’t increase much.
• Higher profits are slipping further into the future, to 2006 or 2007, and losses
are expected to have have peaked, for the time being, back in 2003.
• Fuel efficiency is now a key industry issue.
• The comeback of the car will continue, while SUV, pickup, and minivan
sales will stabilize at or near present levels for the next few years.
• Luxury vehicles will lose some appeal.
• The concern that the industry has parted company with consumer wants
and needs is abating.
• Safety is a basic tenet to the industry now and will continue to be an
ongoing major focus for consumers and manufacturers alike.
• Labor relations have entered a stable period.
• New technology will be as important as new models in attracting customers.

Download the full report here.