Automotive industry leaders are predicting that one of Europe's major car brands will go under in the next three years.
New research published today based on the testimonies of more than 300 senior figures in the sector suggests factors such as Brexit and electric vehicles will contribute to the downfall of an iconic motoring brand.
The new report is entitled 'The Innovation Race' and explores the challenges and opportunities for Europe's car makers, with more than half of respondents expecting a big name to fall.
The survey interviewed over 300 senior leaders from car makers and major suppliers including BMW, Daimler, Jaguar Land Rover, Magneti Marelli, Volkswagen and Williams F1.
Stricter environmental regulation in the coming 12 months was deemed to be the most pressing short-term concern for 55 per cent of respondents while 52 per cent believe a new entrant will disrupt the market with a revolutionary new kind of vehicle over the next three years.
Analysis also highlighted the move to the next industrial revolution, with 71 per cent of respondents indicating they needed to adopt Industry 4.0 or digital processes in order to survive.
The research was conducted by Protolabs, a digital manufacturer of custom prototypes and low-volume production parts based in Telford, Shropshire.
Bjoern Klaas, managing director of Protolabs Europe, said: "There appears to be a perfect storm developing in the automotive sector, with trade wars, Brexit and the race to electrification creating a time of extreme change for the car brands and supply chain.
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"With so many challenges to face, it is imperative the industry continues to invest in R&D and its collective ability to bring innovation to market quickly. And with this report highlighting the unprecedented change expected within the next three years, it's almost a case of innovate to survive and then thrive."
Professor David Bailey, from Birmingham Business School, acknowledged the industry in Europe was now facing major changes as competition increased from Asia.
"It's certainly the case that the automotive industry faces a perfect storm of stagnating markets, high uncertainty and the heavy costs of investing in new technologies," he told BusinessLive.
"Increasingly firms will have to collaborate share technologies - witness JLR and BMW co-operating on electric motor development and VW and Ford on developing electric vehicles.
"And new competitors will appear from China in particular. The European industry will have to change to survive."
Other findings from Protolabs' research suggested almost 70 per cent of respondents felt under the most pressure of their entire career to innovate while two thirds agreed a business would cease to exist without a strong R&D function.
A further 69 per cent said they were satisfied they could scale up a new innovation, with three quarters indicating they were set-up to include customer insight in the early-stage of the design process.
Almost half of firms said they were less confident in discontinuing an unsuccessful product without suffering a negative impact while 40 per cent felt their innovation strategy was not as aligned as it should be with the corporate vision.