Automotive industry issues and trends
The automotive industry is characterized by intense competition, a sharp focus on cost and regulatory oversight with an ongoing trend towards global sourcing and distributed manufacturing and assembly operations. As the automotive industry in North America continues to emerge from the recession, automotive suppliers and manufacturers need a professional services firm with a wide range of automotive industry knowledge, someone who understands the latest trends and challenges automotive manufacturers face each day. At RSM, we are thoroughly familiar with the challenges our automotive industry clients face and the climate in which they operate, including not only accounting and tax issues, but also the business and technical factors that drive the industry.
Our automotive practice helps clients tackle some of the most challenging and complex issues facing the industry, including:
- Mobile connectivity - this technology is the latest trend to have an impact not only on consumers' mobility choices and transportation choices but seriously affects the decisions made in the board room regarding model refresh cycles.
- Corporate Average Fuel Economy (CAFE) standards – the ever-changing requirements regarding vehicle weight impacts your product development cycle, manufacturing processes and your material choices.
- Mexico – Mexico is seeing the most significant automotive manufacturing boom the industry has seen in decades. Many manufacturers are making major investments in Mexico – are you well-prepared to expand your business in Mexico?
- Import and export activity – understanding the impact of increases or decreases in your automotive import and export operations and what advantages you may have.
- Research & development life cycles – the automotive industry is transforming how people use their vehicles by adding increased functionality, complexity and dependences to the model designs. Adding to the challenge is the ever growing integrations of systems, models and data application information as well as mobile connectivity.
- Repatriation and transfer pricing – Most automotive manufacturers have cross-border transactions, and many have non-U.S. ownership. Many U.S. manufacturers are facing increasing pressures to repatriate money to non-U.S. parent companies.
We have a comprehensive team of tax, audit and automotive manufacturing specialists ready to help you tackle these challenges and many others facing the automotive industry. If international matters are important to you, our international services practice professionals have a deep knowledge base of the global marketplace and accounting standards. We serve many international clients in the automotive space, both those headquartered in the United States and abroad.
Our team has experience that can help your business manage the challenges and capitalize on opportunities that are part of today's automotive manufacturing environment. Whether you are an OEM, Tier 1, 2 or 3 supplier or an aftermarket supplier, we can help you address the immediate challenges you face as well as assist with long-term strategic planning.
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