Economics of the Automotive Industry

Cole, D.E., Smith, B.C., Ziomek, J. 1997. Automotive Interiors Delphi Forecast and Analysis of the North American Automotive Industry.
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This study surveyed automotive executives to obtain insight into the future of automotive electronics. Four hundred executives received the 24-question multi-part surveys. There were 84 usable responses, mostly from high level executives, with 71% of those responding being CEO, presidents, vice-presidents, or directors. Respondents noted supplier roles, as well as the overall pace of change, would continue to increase. They felt some supplier-OEM relationships were too driven by price, but in successful relationships, there was considerable technical expertise and R&D conducted by both parties. They strongly agreed that purchasing electronics in “chunks” improved the product. Respondents wanted to know what communications standards would be adopted and the nature of government-regulation driver distraction. They noted product plans were most likely to be upset by a more rapid than expected change from internal combustion to alternative power sources and 12 to 42 v systems. Product features likely to reach 10% market penetration for luxury vehicles in 2004 include built-in wireless phone interfaces, GPS navigation, automatic collision notification, satellite radio, removable media for entertainment and data, email/Internet access, PDA docking station, and adaptive cruise control.