Factors that are affecting the automotive industry worldwide and the roles of its suppliers are described, and those forces that will dictate change in the basis of competition for both OEMs and suppliers are discussed. Motivating factors of the automotive industry worldwide are discussed, including regulations, fuel economy, life styles, balance of trade, purchasing power, personal mobility, national product loyalty, and Third World growth. U.S. automobile market and technological trends are described, with major emphasis on fuel economy projections and technological changes. CAFE’s for cars and light trucks are projected. A total concept approach to building a “world car” that will achieve sensible levels of safety, cleanliness, and efficiency, while meeting the worldwide demand for a cost-effective, utilitarian, fun-to-drive vehicle is outlined. The implications of technological and market trends to suppliers are described, and the necessary insights into product engineering for the automobile OEMs are discussed.