Annual Automotive Conference
PriceWaterhouseCoopers

Speaker: Larry Yost
Dec. 3, 2001
Dearborn, Mich.

Chairman and CEO Larry Yost discussed the challenging times we are facing in our world, the economy and the automotive industry. Echoing the comments he made during his Aug. 8, 2001, speech to the University of Michigan Management Briefing Seminars in Traverse City, Mich., Yost stressed that in order to survive, auto companies must cooperate and collaborate to raise the image and change the perception of the auto industry. Together, they must create appreciation for the auto sector, change their business models, build trust and, most importantly, get the industry to deliver appropriate returns.

Some of the challenges the automotive industry is faced with include a slowing economy, OEM plant shutdowns, eroding profit margins, currency issues, overcapacity and pressure to cut prices. As a result, investor interest is weak. But, as Yost points out, the automotive industry is a great industry, with $1.5 trillion in revenues worldwide. And, suppliers have the opportunity to grow thanks to OEM consolidation and outsourcing, the trend toward modules and systems, new technology, and global and emerging markets.
By working together to change the industry, OEMs and suppliers can build interest in the auto sector. Or, as Yost puts it, "If we work together to find a better way, we will have a future."