Automotive Conference - Detroit

alt text

The Outlook for the Auto Industry in a Lower Oil Price World

The massive 20 year rise in international trade and globalization is slowing, and the world’s economy is once again looking to America, not BRICs, to provide the engine for economic growth. China is still the world’s largest automobile market, but its economy is slowing markedly.

In addition, the United States’ recent investments in new crude oil extraction technologies, and OPEC’s decision not to reduce production, has had a massive impact on oil markets, and the commodity’s key players. The resulting increase in the supply of oil, the life-blood of the global economy, is transforming the world’s geopolitics from “The New World Order” into “The Lower Oil Price World”, and the resulting lower fuel costs will have large implications for auto consumers and the products they buy for years to come.

Is your automotive strategy prepared for “the Lower Oil Price World” transformation and the likely impact on consumer purchases? Where are best growth opportunities in a low oil price and resurgent mature market economic environment? Is the trend toward globalized platforms and regional sourcing impacted by weakening emerging market growth, and cheap gas?

Filter Sort