The automotive industry has crossed the threshold from using magnesium alloys in interior applications such as instrument panels and steering wheels to unprotected environment such as oil pan, cylinder head and wheels. The expanding territory of magnesium leads to new challenges: mainly environmental degradation of the alloys used and how they can be protected. The present critical review is aimed at understanding the corrosion behavior of magnesium and magnesium alloys in industrial and marine environments, and the effect of microstructure, additive elements and inhibitors on the corrosion mechanism.