TAILIEUCHUNG - A new era Accelerating toward 2020 — An automotive industry transformed

We’re already making great strides in this direction. Agencies across the Federal government, including the Departments of Energy, Agriculture, and the Interior, are working to promote clean energy deployment by offering grants under the Recovery Act to renewable energy manufacturers and developers; funding cutting-edge R&D; modernizing our rural energy infrastructure; siting the world’s largest solar power plants on public lands; and opening a new frontier for offshore wind development. Thanks to these concerted efforts, we are on track to double renewable energy generation by 2012. . | Deloitte A new era Accelerating toward 2020 An automotive industry transformed Contents The transformations to come 1 The restructuring imperative 2 Changing customers changing demands 8 Technology to reflect new sets of demands 15 Getting the right skills 22 The next chapter in industry history 26 Endnotes 28 The transformations to come At least now the picture is clear For the past few years automotive leaders and observers have witnessed an industry in peril. A slowing global economy coupled with declining consumer confidence has translated into dismal new car sales in most markets. But the slump has masked many outstanding industry advancements. Standards of quality and productivity for example have been raised without a corresponding increase in price. Cars today are safer more fuel efficient and more technically advanced than ever. And the automotive workplace has evolved from an image of dark dirty and dangerous to an environment of high skills advanced technologies and dynamic change. Despite this competitive and financial pressures have led to a number of high-profile bankruptcies. Production utilization in North America Western Europe and Japan has dropped dramatically leading to widespread job losses. Even with discounts and other purchase incentives consumers wary of an uncertain economic future have yet to return to the showroom without extraordinary government incentives. So what will be the shape of the automotive industry as the world emerges from the economic downturn In this report Deloitte Touche Tohmatsu s senior automotive leaders offer a perspective on the structural changes and major customer technology and people trends expected to transform the industry over the next decade. A massive shift in the competitive landscape will see China and India emerge as major players in the industry. These markets will join Western Europe Japan Korea and the United States as the centers of design and manufacturing for original equipment manufacturers OEMs .

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