Automakers steer back towards gas-powered vehicles, finds KPMG Survey
Fuel efficiency trumps the need to be green for cost-conscious driving public
TORONTO, Feb. 11, 2013 /CNW/ - As the love affair with the electric car
continues to wane, automakers will focus on improving the efficiency of the
traditional internal combustion engine (ICE), while also putting a greater
investment in hybrid plug-ins, according to KPMG's 14th annual Global
Automotive Executive Survey.
"Costly batteries, comparatively low driving distances and availability of
recharging stations have slowed the charge towards electro-mobility," said
Peter Hatges, Partner, KPMG and Canadian Automotive Head, KPMG Corporate
Finance. "This continued uncertainty over e-mobility technologies, along with
rapid urbanization and evolving consumer behaviour are driving forces behind
the expected shift in the automotive landscape over the next five years."
KPMG's Global Automotive report, Managing a Multidimensional Business Model,
-- Over half of respondents say ICE optimization will offer the
greatest potential for clean, efficient engines for the next 6
to 10 years
-- Investment in plug-in technology is an area of interest for 24
percent of Original Equipment Manufacturers (OEM) and supplier
respondents; only eight percent will invest in pure battery
-- Ninety-two percent of survey respondents consider fuel
efficiency the primary vehicle purchasing factor, while
environmental concerns fell from second to fourth place from
-- Over two-thirds of respondents envision new alternative
solutions to single vehicle ownership
"Increased daily congestion and skyrocketing parking costs in Canada's urban
hubs are giving rise to alternative mobility solutions such as vehicle-sharing
or pay-per-use," said Hatges. "Where automakers could formerly concentrate
exclusively on producing ICE cars, they must now address consumer trends such
as this shift towards mobility-as-a-service, while considering a range of new
Automakers and suppliers alike must continue to consider a host of factors as
they look to make the right investment decisions to fund a profitable future.
As the industry adjusts to the changing landscape, some automakers are
expected to fare better than others. Respondents anticipate Volkswagen will
see the greatest increase in global market share, followed by BMW and Chinese
manufacturer BAIC, with Toyota close behind. Ford finds itself just above
General Motors, slipping from 8(th) to 14(th) in this ranking from the KPMG
2012 Global Automotive Survey.
The annual Global Automotive Executive Survey interviewed 200 auto executives
including automakers, suppliers, dealers, financial service providers, rental
companies and mobility service providers from 31 countries. Twenty-four
percent of respondents are from the Americas. KPMG has released an annual
survey of automotive executives expressing their views on the state of the
industry since 1999.
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited
liability partnership established under the laws of Ontario, is the Canadian
member firm of KPMG International Cooperative ("KPMG International"). KPMG
member firms around the world have 152,000 professionals, in 156 countries.
The independent member firms of the KPMG network are affiliated with KPMG
International, a Swiss entity. Each KPMG firm is a legally distinct and
separate entity, and describes itself as such.
Follow @KPMG_Canada on Twitter and linkedin.com/company/kpmg-canada on
LinkedIn for more facts from the Global Automotive Executive Survey.
Kira Froese National Coordinator, Media Relations KPMG in Canada (416)
SOURCE: KPMG LLP
To view this news release in HTML formatting, please use the following URL:
CO: KPMG LLP
NI: FIN ECOSURV
-0- Feb/11/2013 12:30 GMT
Press spacebar to pause and continue. Press esc to stop.