Above all, companies say that manufacturing overcapacity remains very high – it is seen as highest in North America, but not much lower in Europe or in Japan. Consequently the growth in mergers and acquisition activity is likely to be high, say companies, and forecasts for the next four years suggest that the biggest changes in terms of automotive restructuring may be yet to come.

However, companies do expect revenue growth. Most of that growth will be found in emerging markets, they say, and particularly in China. Forecasts of domestic sales in China have grown, as well as forecasts of Chinese exports. Brazil, Russia, and India are expected to grow strongly as well – although companies add that emerging markets will soon face their own problems of overcapacity, implying that less efficient segments of the emerging market industry will also have to be rationalized.

Companies also believe that it is growing harder to find cost savings, but that costs will have to be cut if the industry is to be able to finance new product developments, particularly in fuel efficiency. The industry believes that consumers will insist on more fuel-efficient and more environmentally-friendly products and that along with low-cost introduction vehicles, such advanced products will be the biggest gainers in market share over the next five years.