The automotive industry has been struggling for growthfor decades. However, not every company in the industryfaces the same decline. American and Europeanautomotive companies are losing their shares and profitswhereas Japanese companies are world market shares andgaining more profits. Therefore, present is considered asthe big transition period of the automotive industry. Thepurpose of our article is to present the weak points ofcurrent systems of the automotive industry as a whole,and provide the solutions and suggestions for the industryto become prosper again. In addition, we will give insightto a unique supply chain and logistics conceptsimplemented by Japanese automobile companies, thatallow them to become successful, as a model of bestpractices of the industry.