Skip to contentSkip to navigation

The U.S. Auto Industry Is Booming Again—Will It Continue?

Strong new vehicle designs and pent-up demand are pushing sales volumes back up near historic highs, and reduced cost structures mean profitability is up too.

(originally published by Booz & Company)

After a prolonged slump, the U.S. automotive industry has come roaring back. Vehicle manufacturers and suppliers restructured operations, reduced capacity, and instituted lean cost structures. These have all borne dividends. In parallel, industry sales are brisk, and year-over-year growth has been in the double digits. During the recession, as many people put off their vehicle purchases, the U.S. fleet grew older and clunkier. But a wave of innovative new designs with better fuel mileage, safety features, and informatics are drawing car buyers back.

Can the good times last? We surveyed several hundred executives among manufacturers and suppliers to gauge their current perceptions of the industry—and to spot any looming bumps in the road. The survey found that auto executives are less rosy in their forecasts of future growth, and now far more likely to use incentives and discounts to drive sales. Key highlights from the survey are summarized in this new infographic from Booz & Company.

Scott Corwin

Scott Corwin was formerly a partner with Booz & Company.

Brian Collie
Brian Collie was formerly a partner with Booz & Company.
Get s+b's award-winning newsletter delivered to your inbox. Sign up No, thanks
Illustration of flying birds delivering information
Get the newsletter

Sign up now to get our top insights on business strategy and management trends, delivered straight to your inbox twice a week.