Wolfgang Reitzle, who heads up Ford's Premier Auto Group, had harsh words for America's struggling auto industry on Jan. 4 at the Greater L.A. Auto Show.

Reitzle challenged manufacturers and dealers to aggressively pursue new technologies, marketing strategies and sales incentives.

"I am pretty much fed up with the negative, defensive situation we in the automotive companies nowadays are so often put in," Reitzle said in a presentation to journalists at the show.

Reitzle put aside his prepared remarks to speak off the cuff about the auto industry.

Car companies should stop thinking of themselves as manufacturers of "sheet metal boxes" and define themselves as "mobility enterprises," he said. "In the future, it must not only be that we sell cars. You can buy mobility from us."

He had harsh words for the typical American car dealership, which he called a "parking lot with a roof," and described rebates as a "disease" that cheapens a brand. "This comes from creating unattractive products which nobody wants that can only be sold by rebates," he said.

Reitzle also took aim at financial analysts who value Internet companies but consider the automotive industry a poor investment. "I think we are the future economy," he said. "Because there is no substitution for the car, it will always grow."

A Ford press release, published after Reitzle's presentation, did not report his apparently spontaneous remarks, saying only that Reitzle had spoken on three key areas -- product, brand and the management of the business -- emphasising the importance of each element in the development and future of the automobile industry. However, the company later issued a full transcript of Reitzle's speech.

"I believe the industry will continue to consolidate, but I also believe the size and complexity of the new companies formed will require a different management paradigm," Ford's press release quoted Reitzle as saying.

"The winners will be those who can divide their businesses into nimble, market sensitive, and less bureaucratic business units and yet still achieve synergies and the benefits of a large group. The survivors will be those that master this paradigm."

Reitzle noted that catering to individual customers would become increasingly crucial to the auto industry's survival. "My prediction is that the last step of personalisation will take place in the big dealerships," he said. "The big, strong dealers will not only have a service shop, they will also have a shop for personalisation, where the dealer can change parts, make the interior a personalised interior. You can change the colours. You can change it after a year."

The Premier Auto Group, which manages the Aston Martin, Jaguar, Land Rover, Volvo and Lincoln brands for Ford, has moved its headquarters to Irvine, Calif., where it will open a design studio, Reitzle said.