Why Ist the Automotive Industry So Profitabel?

The automotive industry has always been traditionally considered a great industry from the point of view of good pay, benefits, pension and stability. I can attest to this as I was a manager for over 20 years split between GM and Ford. This stability of employment has been tested when you consider GM, Ford and Chrysler starting in the 2004 to 2009 time framework. These three companies saw a huge erosion of market share at the expense of imports such as Toyota, Honda, Nissan, Hyundai to name a few. Suddenly the shift of stability in the automotive sector went to these companies. Although the automotive sector has stabilized it is not the same as it was. However, the auto sector still provides some of the best standards of living a person can find. Large companies such as these still provide huge opportunities to anyone who is willing to work hard.

I believe that the face of the automotive sector is evolving though. The car isn't going away but is evolving. There is pressure on all manufacturers to make increasingly fuel efficient cars. Some companies have introduced E85 fuel, hybrid and electric vehicles. As gas continues to increase in price, these alternate vehicles are going to become more desirable and prevalent. At some time in the future a tipping point will occur in which mild consumer interest in alternative vehicles will become mainstream thinking. I believe this will redefine the industry yet again and will determine who will be the movers and shakers, who will thrive and who will not survive.