Auto Execs Looking Forward To A Good 2011

Interview: Gary Silberg of KPMG talks with WWJ AutoBeat Reporter Jeff Gilbert.

As we head into 2011, a sense of optimism has returned the auto industry. An annual study of top executives shows that most feel things are improving faster than expected.

"It's just been such doom and gloom in the industry the last couple of years," says Gary Silberg who heads the automotive sector at KPMG, the U.S. audit, tax and advisory firm. "It's very nice to see these results."

KPMG talking to 200 senior auto industry executives, and found what their survey calls a "dramatic turnaround in their expectations."

"Two years ago, there was a great deal of pessimism, and restructuring and negativism," Silberg told WWJ AutoBeat Reporter Jeff Gilbert. "This year's results people are positive, forward looking."

The executives are particularly bullish on Ford, with 43 per cent expecting Ford to see its third year of market share gains in 2011. There's also optimism about the future of General Motors and Chrysler.

Silberg says he believes much of this comes from the fact that Chrysler is now breaking even, General Motors is making money, and Ford is posting big profits. The earnings coming after years of losses.

"There was such doom and gloom in terms of how people were looking at the market," he said. "Now, to have this comeback has really driven incredible profits in the industry, and cash flow that nobody would have anticipated."

The study also showed more plans for investment in new technologies, both in terms of manufacturing and alternative energy. Silberg said the pace of mergers and acquisitions is expected to pick up, as is growth in emerging markets.

"I think it's a very exciting time for the industry."