Following years of economic uncertainty and industry restructuring, global auto executives expect US auto brands to increase market share over the next five years, spurred by product innovation, restructuring activities and continued improvement in product quality.
The outlook marks a dramatic turnaround in their expectations from a year ago, according to the 12th annual global automotive survey by KPMG LLP, the US audit, tax and advisory firm.
In polling 200 senior executives in the global automotive industry for the 2011 automotive survey, KPMG found that industry executives also remain focused on investing in alternative fuel vehicles, investment in new plants and products, and will continue to invest in emerging markets for growth.
On the subject of global market share winners over the next five years, 43 percent predicted Ford would see market share gains in 2011, compared with 29 percent in 2010 and 13 percent in 2009.
General Motors saw the most significant climb among the respondents in this year's survey, as 40 percent of executives expect its market share to increase over the next five years, up considerably from 13 percent in 2010 and 15 percent in 2009.
Chrysler also saw a double-digit increase in the number of executives predicting improvement – finishing at 24 percent this year versus just seven and a half percent in 2010.
"This year's survey results clearly demonstrate that the restructuring efforts of the past several years have helped US auto manufacturers emerge more efficient and more competitive," said Gary Silberg, National Automotive Industry leader for KPMG LLP.
"Moreover, despite the economic challenges they continued to invest in new product innovation. The efforts have paid immense dividends for the industry and today we see a completely different landscape for US automakers. As a result, competition today among global automakers is intense and that's a trend that will certainly continue."
The 2011 KPMG survey also finds the auto industry heavily investing in future technology, new products and safety improvements. In fact, when asked where manufacturers would increase investment over the next two years, new products (97%), new powertrain technology (93%), and improvements to safety performance (87%) were the top selections.
"Another indication that the industry is getting healthier is that these execs are telling us that investment is back on the table this year," said Silberg. "Vehicle manufacturers understand there is pent-up demand for new cars, especially in the United States, and we're seeing some significant investment in new products and technology. In addition, more than half the execs expect increased spending on new plants, as we've recently seen with several automakers bringing new, state-of-the art facilities online to replace older capacity that has been phased out."
In addition to these production-related investments, auto executives also say they will be increasing their focus on alternative fuel technologies, specifically hybrid fuel systems, battery electric power and fuel cell electric power.
Despite the apparent focus on electric power, however, seven in ten respondents to the KPMG survey say that the auto industry won't be able to offer an electric vehicle that is as affordable as traditional fuel vehicles for mainstream buyers for at least four years.
