March 2011- For the first time in years, automakers are brimming with optimism. In late January, J.D. Power, Westlake Village, Calif., raised its forecast for U.S. 2011 auto sales to 13 million units—a 2 percent increase. Jeff Schuster, director of forecasting at J.D. Power, said in a press release that “further upside potential remains” if both the economy and credit availability continue to improve.

The enthusiasm among manufacturers was palpable at the 2011 Chicago Auto Show where automakers rolled out their new models designed to attract the next generation of car buyers. “By 2012, Gen Y will account for approximately 40 percent of the car-buying population and represent a new breed of confident consumers who are independent, tech-savvy, engaged, demanding and just the group to help rejuvenate the automotive industry,” according to “Gaining Speed: Gen Y in the Driver’s Seat,” a report from Deloitte LLP’s North American Automotive Practice and the Eli Broad College of Business at Michigan State University.

The survey found more than 82 percent of Gen Y consumers are excited to shop for a vehicle, and automakers have stepped up to the plate to offer the features they crave. New vehicles often boast premium speakers, subwoofers, navigation systems and Bluetooth capability. For example, the 2012 Volkswagen Jetta GLI offers a standard 6.5-inch touch screen, premium VIII radio with Bluetooth and iPod connectivity and an available option of a Fender sound system the company said will “bring the concert stage to the vehicle for the ultimate music experience.”

Dodge also focused on the in-vehicle experience at its Chicago Auto Show press conference, especially for its R/T line, which includes a Grand Caravan R/T, dubbed the “man van.” This car bears no resemblance to the minivan I knew growing up. It has 17-inch wheels, a body-color grille, black leather seats with red stitching, leather-wrapped steering wheel, performance-tuned suspension and a nine-speaker, 506-watt sound system.

In addition to a big Gen Y market, automotive CEOs are predicting growth globally. According to PriceWaterhouseCoopers’ 14th Annual Global CEO Survey, automotive CEOs surveyed by PwC in the fourth quarter of 2010 are confident growth is on the rise in 2011. Ninety percent of automotive CEOs indicated they were somewhat confident or very confident in achieving revenue growth in the next 12 months—a number nearly as high as their opinion before the global financial downturn in 2008.

PwC’s Autofacts team anticipates about 80 percent of global growth from 2010 to 2017 will come from emerging markets, and 34 percent of that forecast will come from China.

“Automotive companies that have made strategic decisions to invest in China and forge joint ventures with Chinese partners are seeing strong revenue growth because of the actions taken over the last decade,” said Rick Hanna, PwC global automotive leader, in a press release. “Automotive companies recognize the importance of the domestic China market share. However, long-term sustainable profits will still be dependent on producing vehicles that consumers want to buy at the right price. This is as true in China as it is everywhere else in the world.”

There’s a car out there for consumers who crave a sleek look, high performance, customized features and everything in between. Detroit isn’t the same old industry anymore, which is evident in this month’s OEM Report on page 14. The new, performance-oriented Cadillac CTS series is designed to appeal to a younger generation of auto enthusiasts, and laser brazing helps make the GM stylists’ vision a reality. MM