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In the Future there Will be Only Six Automakers: Morgan Stanley

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The global automotive industry could shrink from nearly 30 major automakers to merely a half a dozen in the future.

That, at least, is the opinion of one auto industry analyst, due to “the balance of economic, competitive and technological forces.” Adam Jonas, auto analyst for Morgan Stanley, believes that the landscape of the industry is changing radically and if American automakers in Detroit want to survive, they’ll have to change their way of thinking.

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The analyst’s thoughts have been spurred by the technological advancements made by Tesla and believes the newest battle for automaker survival involves technology being developed outside the auto industry. Last year, General Motors set up a committee strictly to review Tesla’s operations to see if the American automaker can learn anything from it. But technology will be key heading into the future Jonas believes, noting that BMW has about twice as many tech professionals at the German automaker’s Mountain View technology center than all of Detroit’s automakers.

“Tesla could either end up being Detroit’s worst enemy or its salvation,” said Morgan Stanley auto analyst Adam Jonas. “In our opinion, the disruption from Tesla comes early enough to allow an incumbent sufficient time to adapt its culture, capital allocation and recruiting strategy to the changing forces. With proper execution, Detroit may thank Tesla Motors for being that stiff board in the back of the head right when they needed it.”

[Source: Detroit News]

19 Comments

Cory Ray says:

Very vague article. Seems like it’s a copy-paste from another source. Is there a link to the original?

Zac says:

The link is at the end of the article. Bottom right it says “Source: Detroit News”

Rickers says:

LOL. What a dumbass.

Cory Ray says:

Thank you.

Honest Abe says:

I’ll call them: BMW, Toyota, VW, Fiat, Ford, Nissan. Sorry Honda, GM, Mercedes, etc.

Richard Joash Tan says:

but for me, Subaru should be in the six

Cory Ray says:

Toyota already owns about 20% of either Subaru, or its parent company, Fuji Heavy Industries. I would like to see them stay independent but I see them getting swallowed by the larger company in the long term.

Richard Joash Tan says:

I am assuming that Toyota owns FHI for making the 86/BRZ twins

chavitz says:

Quite sure, if Morgan Stanley ever issued such opinion, The opinion was financially sponsored by Tesla , and this article is sent by Tesla. In awl street, money can buy everything. . The sole aim of Practice is to make this totally rubbish carmaker, Tesla, look something bright and edgy. The simple question is: is Tesla going to be one of the six? Who will believe such junk ? Tesla is competitive in way of such shrewd marketing , but nothing else. That’s junk

Richard Joash Tan says:

and you are a big bullshit junk

Honest Abe says:

What are you talking about? Where does it say anything about the post being sponsored by Tesla?

dMnyc says:

Prediction: Subaru will eventually be part of Toyota or dissolved.

Cory Ray says:

Posted above without seeing this. It is quite likely.

Honest Abe says:

I have to agree. I could also see Toyota buying Honda in a distant future.

Richard Joash Tan says:

remember, joint colaboration

@TheAutoholic says:

Hyundai, Toyota, Honda, Ford, Tesla and whatever is left of GM’s holdings (if there were only 6)

方心樂 says:

Toyota, Fiat, Ford, GM, Tata, VW

Frank H says:

VW will buy GM… I’m calling it now.

Ibinaround2 says:

I don’t get too worked up over one man’s opinion…