Globally, it is an exciting time as the automotive industry continues to grow. While the automotive industry has been and will remain a product-driven industry, the basis of regional competitive differentiation in mature markets such as the United States has shifted from the product to branding and retail channels. Although the product and brand will have significant impact on profitability, customer dealership experiences, how original equipment manufacturers (OEM) strategically partner with their dealer networks, and how dealers market themselves and manage inventory to offer desired products will have a greater impact on the bottom line.

Deloitte Consulting LLP conducted a research study regarding the performance of the Asian automotive OEMs both globally and within the U.S. market for the year 2008. The analysis of this information across three critical dimensions: product, brand and retail channels resulted in a point of view (POV) titled "Demand-Driven Automotive Sales and Distribution," which focuses on successful regional and automotive sales and distribution methods.

The POV concludes that an OEM’s global product and volume-planning decisions, in conjunction with regional execution of product positioning, branding and dealer development, are the basis for sustainable profitable growth. Deloitte’s Demand Driven model provides a framework for OEMs to consider in developing strategies that drive profitability.

Download the full POV below to take a new look at the automotive industry and get fresh insight into how OEMs might increase margins vs. traditional strategies.

Related Content:
Research: 2008 Industry Outlook Report – Automotive