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Outlook. The two underlying factors behind this location shift in the auto industry are production costs and the demand factor. The cost of labour in emerging auto markets continues to be a fraction of that in the developed world; and many of those low-­‐cost regions have high potential for growth.


Nevertheless, established manufacturers have also experienced a measure of growth in 2011. In the US, Chrysler, Ford and GM saw a recovery in sales. In the first seven months of 2011, Ford’s sales went up 11.7 percent to 1.25 million vehicles, while sales of GM and Chrysler grew 15.7 percent to 1.48 million vehicles and 21.2 percent to 751,958 vehicles respectively, during the same period.


But the cyclical leverage of the automotive industry nevertheless exposes it to the uncertain outlook for the US and global economy. While the Asian countries, especially China and India, are expected to account for 40 percent of growth in the automotive industry over the next five to seven years. According to Global Insight – a US-­‐based provider of economic and financial information – 14.7 percent of growth is expected to come from India and 8.3 percent from China by 2013 (compared with 2008 levels) based on their rapidly growing economy. Domestic automakers are likely to rule the key growth market of China as the government plans to consolidate the top 14 domestic automotive players into 10. These automakers would capture a share of more than 90 percent in the local market. Meanwhile, Indian automakers are also venturing into international markets by introducing innovative products that could meet consumer demand abroad.


-­‐ Financial services


Emerging from the global turmoil of the financial crisis and the worst global economic downturn of recent times, financial services companies are facing a multitude of external forces that continue to change the industry and impact individual companies. These forces range from new regulatory requirements aimed at stabilising the financial system to the development of ongoing rules to counteract corruption, terrorism, or bribery.


The key forces currently shaping the global financial services industry are analysed in the Deloitte Touche Tohmatsu Limited Global Financial Services Industry (GFSI) Group’s survey, Harnessing the Forces of Change, which highlights the changes affecting the world’s banks, securities firms, insurance companies, and investment management firms. As a result of the credit crisis, many financial institutions were forced to merge, dissolve, or reconsider their business models to maintain their operations. But while some well-­‐known companies shut down, other new ones have emerged, creating some unique competition in the marketplace. Services that were once offered exclusively through major banks or insurers are now being offered by a new array of non-­‐traditional and overseas entrants and this has created a new, more competitive landscape, according to the GFSI Group’s research.


In addition to new entrants, an increase in consolidation can be observed, with key players becoming global, and smaller national and regional companies becoming more strategic in


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