Auto industry will drive world’s economic future

ED RICHARDSON
THE AUTOMOBILE industry will continue to be one of the world’s most important economic sectors in the future, according to a recent study undertaken by Mercer Management Consulting and the Fraunhofer Society.
The value creation represented by automobile development and production (excluding sales, replacement parts and service) will grow at the annual rate of 2.6% over the next 12 years, from today’s level of EUR645 billion to EUR903 billion in 2015. During this period, the industry as a whole will invest EUR2 000 billion in capital spending and annual auto production will climb from the current level of 57 million units to 76 million units.
According to the study, “Future Automotive Industry Structure (FAST) 2015” brand management will become the core function of today’s auto makers.
They will focus increasingly on brand-specific elements such as design, brand experience and service strategies, as well as those functions and technologies that are central to the brand profile. In the long term, this is the only way they can differentiate their brands from those of their competitors.
Consequently, the roles now played by the automobile makers and their suppliers are bound to change significantly, as auto makers evolve into high-tech brand merchandisers and their suppliers gradually take over all automobile production activities that are not directly related to the brand experience, it says.