As report author Uwe Achterholt, global chair, automotive, for KPMG in Germany, points out, the positive changes have occurred against a background of a difficult economic climate, including high oil prices and contracted credit. As such, he says, "The importance of the turnaround in mood cannot be underestimated."

The survey indicates the industry is still going through transition, rounding out the first phase of a restructuring process that has included major cost-reduction efforts and a shift of manufacturing to developing markets and low-cost countries. Phase II will demonstrate a willingness to make vehicles geared for the 21st century consumer. "Our research shows a renewed focus on sustainability and the environment, an increase in growth-orientated investment, rising popularity of passenger cars and fuel-efficient vehicles and higher projected sales of hybrids," says Achterholt. "It would appear that the new positive attitude of automotive executives is a result of the industry rising to meet the challenges of curbing CO2 emissions and of meeting the vehicle needs of the rising middle class in developing markets."

Achterholt believes the change in mindset suggests the industry has bottomed out and is regrouping with new technology geared towards production efficiencies and consumer and regulator demands for fuel efficiency and clean energy. He attributes the willingness to change partly to the promise of vast numbers of new buyers in developing markets.