Auto industry executives are more optimistic about near-term profit potential than they were a year ago. The outlook is reflected in a survey of 110 executives at 23 automakers and 58 suppliers by KPMG LLP. The New York audit firm has surveyed automotive leaders for six years to gauge industry expectations.
According to KPMG, 38 percent of those interviewed predicted their peak profitability for the next five years will come this year or next. In past surveys, more executives predicted peak profitability was two or more years away.
The respondents also altered their view of Big 3 market share. In 2002 and 2003, the survey found 52 percent and 53 percent, respectively, predicting North American brands would lose market share during the next five years. This year that number fell to 45 percent.
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