The automotive industry is entering its fourth shift — regeneration — since its inception with Henry Ford, and as green technology powers the movement forward, the opportunity to the industry has never been higher.

“This is a difficult time, but this is also the shift from one era to another,” says Michael Brylawski, vice president and practice leader, Mobility/Vehicle Efficiency Practice, Rocky Mountain Institute. “When you shift from something that is older to something that is new there is opportunity. Green is the new era.”

Speaking at the Green Car Conference, focused on furthering green vehicle innovation and advancement, in Novi, Mich., Brylawski discussed the four transformation shifts undertaken by the automotive industry. The first shift was marked by the Model T, steel, and mass vehicle production, fueled by Henry Ford. This transitioned into World War II and the need for automotive manufacturers to change their focus from creating millions of vehicles to then producing thousands and thousands of planes. This willingness to adapt to economic needs helped grow the industry into one of power and success, and eventually guided the market into a time of oil shocks and global hypercompetion. Now, in the fourth shift, regeneration, the industry is being formed by the launch of the Prius, the GM Volt and new business goals of innovation.

“This fourth shift is where we are headed over the next 15-20 years,” Brylawski says. This regeneration focus is being driven by consumer demand for more lightweight vehicles, the increasing use of electric vehicles and the need to get away from oil and carbon use.

The automotive market can look to other industries for examples of successful focus transition, such as Boeing, which retooled its planes entirely and based its priorities around efficiency, and Apple, which changed from selling PCs to selling game-changing products with recurring revenue streams.

“There is always going to be the need to sell and deliver high quality products that consumers love,” Brylawski says. “But there is also a need to develop recurring revenue streams.”

Overall, the need for continued industry success is vital. “We can’t have this industry go bankrupt. But money alone is not going to solve the problem,” Brylawski says. “We have to have bold action. We’ve got to change the way we’ve been doing things. To get to this fourth shift, we have to take the innovation of Henry Ford with the purpose of the second shift. We can make this shift happen if we have the sense of urgency. And its never been stronger.”