The automotive industry has had its ups and downs over the past 30 years, and by necessity has had to reinvent themselves to be competitive and to survive. It would be understandable, if not expected that an automotive supplier might want to diversify their portfolio of businesses if or when another economic downturn happens. Given how this question is asked, an interviewer would like to hear you talk about four things: your knowledge of the automotive industry, your hands-on experience of product development, your involvement with mergers and acquisitions, and your expertise with marketing and branding. Your focus should be on assessing the current situation, and looking at whether the supplier might have products or materials that may be redeveloped for non-automotive applications. Doing some research on cross-over products from different industries might help move the conversation in the right direction.
