U.S. automakers face continued sluggish sales, increased competition and more red tape in the coming decade, the University of Michigan said in a bleak industry forecast.
Only modest growth in the North American market is expected in the next 10 years, according to the annual report scheduled for release Monday by the university's Transportation Research Institute.Its central message: urging the Big Three to get back to basics at a time of flagging auto sales and intense foreign competition.
"Manufacturers cannot forget the purpose of their business: to provide vehicles that are desirable, affordable and offer the customer real value while meeting the broad expectations of society, labor, government and others," the report said.
The U.S. passenger car market is expected to grow just 1.1 percent annually over the next 10 years, the institute said. By contrast, demand for import models will grow by 2.1 percent.
"Corporate strategies must adapt to relatively flat markets and strive to build market share, reduce costs and increase profit margins and reinvestment rates," the report said.