The paper examines the investment performance of the world automotive industry using a sample of 21 original equipment manufacturers (OEMs) based in three major continents, North America, Europe and Asia between the years 1999 and 2004. The empirical findings suggest that there exists persistent overinvestment not only in the global level but also in the major automotive production regions analyzed. Proving that none of the 3 regions gain returns on investment at least as large as their costs of capital, shareholder wealth is not maximized in the world automotive industry. Europe, among these regions, proves to gain the highest return on investment of its cost of capital. The empirical results also show that the return on investment financed by debt is high around the world and close to 100% of its cost of capital.