KPMG survey of auto executives shows uncertainty to be dominant mood

München, Germany - Uncertainty is the dominant mood among global auto industry executives, according to a survey published by international accounting and consultancy firm, KPMG.

In many of the questions posed in this annual survey, the most favoured response selected by the executives was "Will be volatile and unpredictable."

Where the executives felt they could see a future, the survey found that the most important issue to auto executives is product quality,” with reducing costs” a close second. On this theme, the survey found that the executives shared a higher expectation of potential vehicle manufacturer and supplier bankruptcy.

KPMG said product quality” is the top issue (95 percent) in respondents' minds for the third year running, followed by new products” (82 percent), which has been number two since 2003.

In a new development, the executives expected that small, inexpensive cars and gas/electric hybrids, both prized for fuel

efficiency will make the biggest gains in market share around the world. however,

The survey revealed that more executives believe that global car manufacturing over-capacity is greater than 20 percent. This year one in three thought this, compared with one in five a year ago. Despite this the respondents expected more capacity to be added in Asia, South America, and Eastern Europe at the expense of North America and possibly Western Europe capacity.

Continuing the theme of expansion in Asia, the consensus is that Asian brands are by far the most likely to gain global market share, with South Korean and Chinese brands leading Japanese and Indian brands.

Readers may download the full 16-page report at the link below, provided they give some personal details to KPMG.

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Report home page on KPMG site