The global automotive industry has always been fascinated by the latest trends, but this focus on novelty may have led it to ignore - to its great peril - more fundamental realities. This paper, written by Glenn Mercer (NA) & Andreas Zielke (EU), McKinsey & Company, is exclusive to just-auto and highlights what they see as 'four truths' about the auto industry. It has been published in two parts (part one was published last week). Part two - reproduced below - examines the third and fourth of their four truths: 'a mid-market squeeze is on' and 'past trumps future'.