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Report: Auto industry will face challenges

Aug 03, 2011 Brian Bradley

According to one recent study, which looked at auto industry financing and other issues, car dealers and manufacturers will face challenges in the years to come. The 2011 Automotive Outlook, released by AlixPartners, revealed that while original equipment manufacturers recorded $12.5 billion in profits in 2010, the rate of overall auto sales would continue to slow down over the next few years. "It’s a cliché, but the auto industry really does face a ‘brave new world,’ and the differentiators for winning in the world we are transitioning to will be significantly different from the past," said John Hoffecker, managing director at AlixPartners and co-lead of the firm’s Enterprise Improvement Practice. "The good news is that most of the U.S. players now have their costs in line to capitalize on a slow, steady sales recovery." And while the industry will likely face issues, according to some experts, consumers will be able to benefit from money-saving deals being offered. In an article for BNet, Jim Motavalli wrote that customers could save considerable money by taking advantage of trial balloon offers from General Motors.