Post Number: 2058
|Posted on Thursday, January 04, 2007 - 1:31 am: || |
The Detroit auto show draws near, and the US auto firms are predicted to keep on hurting badly for the next half decade...
AP story referred by Forbes:
"Auto executives worldwide expect slower North American sales growth and more parts supplier bankruptcies during the next five years, according to a survey taken by the auditing and consulting firm KPMG LLP.
They also see high fuel prices permanently etched in consumers' minds, sending them away from trucks and sport utility vehicles to hybrids and low-cost cars, and that doesn't bode well for Detroit's Big Three, according to the survey being released Thursday."
"Fifty-six percent of the executives predicted more bankruptcies in the next five years as the industry continues to shake out weaker companies, while 31 percent said bankruptcies would remain the same as this year."
"The executives think that Asian brands will continue to grow worldwide during the next five years at the expense of U.S. brands. Seventy-one percent said the market share of the North American brands would decline worldwide during the next five years as demand for cars in developing markets continues to grow.
They also predict that Chinese brands will start to capture a significant share of the worldwide market, and that U.S. brands are not positioned as well to sell vehicles in emerging markets, the survey said."
(Message edited by LivernoisYard on January 04, 2007)