Morgan Stanley auto analyst Adam Jonas commented earlier this week that the U.S. auto industry needs to change dramatically. Jones also remarked that the world’s nearly 30 major automakers will sooner or later consolidate, and not more than half a dozen will remain.
Such forecasts are not anything new, but the last predictions for a major consolidation dating from 10 years ago, haven’t come true.
In the time of recession, governments tend to offer some support to struggling automakers. I recent years, consolidation has taken place among suppliers, but still not to the expected extent.
Jonas said that in order to survive, automakers have to come up with a highly creative strategy for the future.
“There are several auto firms with the vision to make it to that final select group. Others are more distracted by the issues of the day, working diligently towards the next engineering cycle,” he said.
He said the newest battle line is integration of technology being developed outside the auto industry.
Read the full story at The Detroit News.