Motor industry 'expecting losses'
Senior executives in the motor industry are expecting more companies to go out of business in the coming years as revenues and profits continued to fall, according to a new report.
A survey of 200 executives by KPMG showed that one in four believed their firm's profits will decrease in the next few years.
Most of those polled highlighted the risk of company insolvencies or bankruptcies, with almost nine out of 10 predicting an increased number of business failures.
Mike Steventon of KPMG said: "The current economic climate is having an unprecedented impact on the automotive industry. The combination of evaporating consumer confidence combined with significant restrictions on available finance, uncertainties over residual values and inherited overcapacity have created the automotive industry's perfect storm.
"Although there are turbulent times ahead and the level of restructuring globally will be unprecedented, I believe we will look back on 2009 as the year the automotive industry addressed its legacy issues of overcapacity, productivity and inherent duplication."
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