Time for a Model Change

Book excerpt: The automotive industry ranks among the most significant business phenomena of the 20th century and remains vitally important today, accounting for almost 11% of the GDP of North America, Europe and Japan and one in nine jobs. In economic and social terms alike, its products have had a fundamental impact on modern society - for better and worse. Yet the industry has found it hard to adjust to recent challenges and is no longer much valued by the capital markets. It is riven with internal contradictions that inhibit reform, and faces a stark choice between years of strife or radical change. This book is a wake-up call for those who work in the automotive business. It highlights the challenges and opportunities that exist for managers, legislators, financial institutions and potential industry entrants. Most of all, it gives us all cause to reflect on the value of our mobility, today and tomorrow.