
Which strategic direction will the OEMs take?
67
4 Which strategic direction will the OEMs take?
4.1 Quo vadis - Automotive industry
The past decade saw a persistent consolidation trend among manufacturers (Fig.36) and
the current economic crisis only reinforces this race to better economies of scale. There
are far-reaching structural problems within the industry, specifically in the traditional
markets, and the long run assumption is that a marked reduction in brands will continue.
Cash poor producers will divest brands like Saab, Vauxhall, and Volvo; resulting in a few
market-dominating manufacturers.
Likely, six or seven large OEMs will