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The future viability of the global automotive sector hinges on its ability to secure sources of credit and to "right-size" its operations, while being responsive to the evolving preferences of its customers.
Governments coming to the industry's aid
A number of big vehicle manufacturers have been forced to seek government assistance-a move that has generated considerable controversy. Proponents argued that the economic fallout from allowing the industry to fail would be catastrophic; critics maintained that the industry operates with an outdated business model, and that any government support would only postpone their inevitable insolvency.
More industry consolidation and collaboration may be down the road
A number of automotive CEOs are considering more collaborative arrangements. Forty percent of those surveyed say they favour joint ventures and strategic alliances over other routes to growth.
Managing your supply chain: The key to competitive advantage
Eighty-one percent of CEOs think that efficient sourcing and supply chain management is a key source of competitive advantage.
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Re-evaluating the business model
Most automotive CEOs have also been cutting costs and re-evaluating their business models, as they struggle to balance the immediate demands of survival with the need to develop an approach that will position them to take advantage of the economic recovery
Related research from PricewaterhouseCoopers
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