pwc:

The global auto industry has been in high gear for the last decade. Thanks to strength in North America and emerging markets such as China and India, annual vehicle sales in 2017 will approach 93.5 million units, up from around 63.5 million in the throes of the 2008 recession. Moreover, combined annual pro ts for the top
 17 automakers worldwide are at record levels, well above US$120 billion.
 Yet automotive companies — suppliers and manufacturers (OEMs) alike — are anything but sanguine. Huge upheavals in the look, feel, propulsion, and technology of automobiles, both existing and predicted, have created a deep well of uncertainty. Many companies are unsure which way to turn strategically to prepare for the transformation that appears to be under way. As a result, they have poured money into new and, in many cases, unproven technologies for automobile connectivity, new engine designs, and self-driving features. The riskiness of this approach is glaring when you consider the industry’s record of unimpressive value creation, even when the sector is delivering record pro tability. In 2016, the return on invested capital for the top 10 OEMs was only 6.6 percent, just over half the cost of capital.
 
 Certainly, major changes are coming to the industry but not as quickly as many would have us believe. Indeed, ve myths have gained credence and have served to potentially misdirect auto OEMs.