Executives have a bright outlook on near term prospects of global profitability, according to a survey conducted by KPMG, and foresee a quicker turnaround in the fortunes of carmakers.

The survey, based on interviews with 113 senior executives at vehicle manufacturers and suppliers worldwide, found 26 of those surveyed said they expect a rise in global profits in the next five years.

Only 14 per cent anticipate a decline. The figures are more optimistic than two years ago when only 16 per cent of bosses expected a rise and 28 per cent predicted a fall. In both surveys, however, 37 and 35 per cent, believed profitability would remain “volatile and unpredictable”. “Increased competition is fuelling higher levels of optimism,” said Mike Steventon, head of automotive at KPMG in the UK.

“Notwithstanding the immediate difficulties for sales in the US market, there is a clear sense that executives now feel they have developed their turnaround plans and have an increasing confidence.” In terms of consumer priorities, the executives said there was increasing demand for vehicles using alternative fuel sources. Over half – 65 per cent – of respondents said this was important or extremely important to consumers. Previously, only 53 per cent claimed this was the case. To download a full copy of the report CLICK HERE or use the link in the top right