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KPMG Reports Auto Industry Focusing
On Green Tech
By Anthony Fontanelle
According to a study conducted by KPMG, an American audit, tax, and
advisory firm, the auto industry is focusing on the development of
green technology like finding alternative fuel sources. The industry is
also set towards the development of low-cost cars and hybrid vehicles
which consumers are asking for.
The poll conducted by KPMG included 113 senior executives of automakers
and suppliers around the world. According to the survey, 86 percent of
the executives believe that consumers will be looking at the quality of
a vehicle that they will purchase in the next five years. Close behind,
84 percent of the polled executives said that fuel efficiency will be
the main basis that consumers will be considering in their next vehicle
purchase.
Seventy percent of the polled respondents believe that safety will be
the main concern of auto buyers. Sixty nine percent of the executives
also pointed out that affordability will be one of the main factors to
be considered by auto buyers the next time that they visit their local
dealerships to buy a new vehicle.
"The industry knows where it is and knows where it needs to be," said
Daron Gifford, the National Automotive Leader for KPMG LLP. "It needs
to produce quality vehicles that are fuel efficient, especially in this
economic cycle, and it needs to invest heavily in developing
alternative sources of power. We found the execs in our survey more
optimistic than past years, and that's largely because the landscape
before them is clearer on the direction they need to go."
As the shift in car buying trend continues, the poll asked the
executives which auto class will show improvement or decline.
83 percent of the surveyed
executives said
that they are expecting sales of low-cost cars to increase. The same
percentage also predicted that hybrid sales will still increase.
Meanwhile, 67 percent of them are saying that car sales will increase
in the next five years. Also, 58 percent of the questioned executives
said that there will be an increase in the number of crossover that
will be sold in the foreseeable future.
As consumers shy away from large vehicles due to the increasing price
of petroleum fuel, 47 percent of the respondents said that they are
expecting sales decrease for SUVs. 50 percent of the executives also
said that sales of pickup trucks will slow down. This though will
unlikely affect the supply and demand for car accessories such as Acura bug shields.
"The auto execs expect heavy investment in new models/products and new
technologies in the next two years as well as building capacity in
Asia," said KPMG's Gifford. "Not investing puts manufacturers at risk
in terms of market and product differentiation, resulting in market
share decline."
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