Introduction An article “Detroit’s engineers need to rethink entire business model” by Pierre LavalleE, published in the Globe and Mail, outlines the main issues with auto industry sector in the US. The author outlines the difficulties auto sector currently faces in the United States bringing examples of such companies as General Motors and Chrysler. Bringing examples of successful companies in the same sector, such as Japanese and Korean companies, the author points out to the necessity of implementing changes in the business model, which after the end of Second World War mostly driven by the old system of coping with increased customers demand. The basis of these changes is the transition from pushing products into the market into customer-driven approach, a modular design and an effective supply chain. An example of such implementation can be seen through the integration of internet and the auto industry through the possibility of configuring, ordering and paying the desired product online. Another implementation state by the author is the collaborative commerce through modular design. The author ends the article stating that such changes require fundamental changes in management and financial processes, where the latest crisis in the industry can be seen as an opportunity to start implementing these changes. Discussion The first concept that can be linked to the aforementioned article is the importance of the managerial role, which was covered in chapter one. As it was stated in the article, “big changes are needed, both to the management model and to the financial processes…” The main function that is concerned in the article is “leading”, “Who will be courageous enough to lead it?” In that sense, although the function outlined in the article is concerned with leadership, other functions such as “Planning, Organizing, Leading and Controlling” are implied. The presented case of the US auto industry outlines the need of a manager of the upper level of managerial hierarchy as there is a need for conceptual skill in leading the new business model. Additionally, as the needed changes in the business models are long-term changes, it can be seen that need of an upper level management is obvious through the main duties of top managers, i.e.” scan the environment, create and communicate long-term vision, and ensure that strategies and performance objectives are consistent with the organization’s purpose and mission.” In that sense, the changing nature of the business can be seen as the main reason for implementing business model changes and accordingly managerial changes. The second link can be seen through the importance of a competitive advantage and the factors influencing it, mentioned in chapter four. The competitive advantage, as a factor of” high value that competitors cannot replicate”, for the US auto industry can be summarized as the availability of the products that satisfy the demands resulted from the massive increases in consumption that followed the end of the Second World War. The aforementioned advantage can be seen as applicable to both economic and socio-cultural conditions that were influencing the post war era. In that regard, the change in the conditions require revising the competitive advantage of the US auto industry, due to the inability to compete effectively with the mos