The future will be rocky for auto companies unable to improve returns on capital.
The global auto industry is more challenged than many people realize. Worldwide sales reached a record 88 million autos in 2016, up 4.8 percent from a year earlier, and profit margins for suppliers and auto makers (also known as original equipment manufacturers, or OEMs) are at a 10-year high.
They paint a picture of a sector that is a less attractive or less lucrative place to invest than other industries.
This assessment suggests that there will be relatively few winners in the auto industry during the next five years and beyond.
The end result - higher profitability for your company.