According to the annual KPMG survey of the global automotive industry, auto executives worldwide expect slower North American sales growth and more parts supplier bankruptcies during the next five years, while they have also solid considerably amongst their European and Asian counterparts.
The survey shows that 3% of American executives expect to see growth in the SUV sector this year, compared to 39% in Europe (down from 50% last year) and 52% in Asia.
"These results highlight the extent to which the industry is having to adapt and realign itself to changing customer preferences. The impact of oil prices and the desire for greater fuel efficiency are clear for all to see. Issues which were once thought of as purely European concerns have now been elevated to a global level with even the US market finally succumbing. The principal casualty of these changing preferences is the SUV which has experienced substantial year on year growth for the past decade. With sales already falling - and with strident media criticism of the sector appearing to strike a chord with the purchasing public - the days of the sector being a key driver of industry profitability, particularly in North America, may be coming to an end." - Mike Steventon, Head of Automotive at KPMG, UK.
The KPMG survey of 150 senior executives paints a cautiously optimistic picture of profitability for the industry, with 42 per cent predicting flat to rising profits over the next five years.
KPMG is one of the largest professional services firms in the world. KPMG employs 113,000 people in a global network spanning 148 countries. Composite revenues of KPMG member firms in 2006 were $16.9 billion USD (7.6% growth from 2005). KPMG has three lines of services: audit services, tax services, and advisory services. KPMG is a Big 4 accountancy firm, along with PricewaterhouseCoopers, Ernst & Young and Deloitte Touche Tohmatsu.
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