...Global Automobile Industry: Changing with Times By Chithra Gopal R.S., M.Sc (Agri) Executive Summary From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to 1890s, the global automobile industry of 2006 has come a long way emerging as market leader in manufacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at...
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...the automotive industry, Ford wants to reposition itself and its business model regarding as how to better satisfy consumer needs, which is to produce smaller economic cars that the US middle-class customers value. Therefore, it seeks to take a new direction and to bring a revolution to the automobile industry, and to revive its glory years. A number of vehicle programs have been changed, delayed or even dropped throughout 2007. Ford officials believe that the shifts are aimed to get the right products to the market faster, with the emphasis on reducing costs and accelerating product development. 3.1 TOWARDS MORE ECONOMIC VEHICLES Ford’s current business strategy is to make new mobility solutions that are fuel-efficient and environmental-friendly, and at an affordable cost to consumers. By monitoring the US market, Ford has detected a change in consumers’ purchasing behavior: the fact that the sales of trucks & minivans constantly fell since 2004 (the “peak” year), while small cars sales have been growing since the same year. This is a clear indication that the trucks in the US is in its declining stage, whereas smaller cars are favored in consumers’ eye. The ever-rising fuel price is another incentive for future car owners in buying more economical, thus smaller cars. Therefore, Ford’s vision of its short-term to medium-term strategy is that the firm will be able to bring affordable mobility solutions to millions of US citizens. By year 2020, Ford will be able to fully implement...
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...China’s Auto Sector Development and Policies: Issues and Implications Rachel Tang Analyst in Asian Affairs June 25, 2012 Congressional Research Service 7-5700 www.crs.gov R40924 CRS Report for Congress Prepared for Members and Committees of Congress China’s Auto Sector Development and Policies: Issues and Implications Summary The automobile industry, a key sector in China’s industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world’s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world’s biggest market for automobile sales. Meanwhile, China’s auto sector development and policies have caused concerns in the United States, from automotive trade, China’s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. China’s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China’s large and fastgrowing market. The domestic Chinese automakers, who...
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...External Environment ICO Ford Motor Corp The increase in global warming is affecting everyone: from the farmer, entrepreneur, small business owner, and large corporations, to the consumers. It is up to the larger corporations to help lead the way in handling the sustainability issues we are facing globally. The concept of sustainability argues that a firm’s ability to continuously renew itself for long-term success and survival is dependent not only upon the greater economic and social system of which it is a part, but also upon the natural ecosystem in which the firm is embedded. (Wheelen & Hunger, 2012, p. 99) Ford Motor Company takes this role very seriously in identifying and implementing solutions to help preserve the world’s delicate resources. According to the Environmental Protection Agency (EPA), Carbon dioxide makes up for 82% of the U.S. Green Gas Emissions in 2013. The EPA has strict regulations and standards regarding how much CO2 emissions automobiles can eliminate. California has also been granted a Clean Air Act waiver. This allows California to implement its own emission standards (EPA, 2015). In Europe, they have a similar government agency called, the European Environment Agency (EAA). Ford Motors has to adapt with the increasing pressures from various government entities to produce fuel-efficient vehicles that have less impact on the carbon footprint. Ford Motors has introduced electric, hybrid, eco-boost, diesel, and flex-fuel options to their...
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...and presently the newest innovations, alternative fuel engines, and electric cars. Henry Ford built the first car in 1896, (Gale, 2003). and then revolutionized the industry when he invented the assembly line.(David Highfill, Matt Baki, Sean Copus, Matt Green, Jennifer Smith, Matt Whineland). This invention allowed mass production which lowered the costs of automobiles for consumers. The industry includes a number of car manufacturers competing with each other in their competitive priorities, and competitive capabilities to capture market share. The major players in the industry are, the big three US automakers, Ford Motor Company, DaimlerChrysler, and General Motors. The major Japanese players who are also a part of the US auto industry are Toyota, Nissan and Honda. Ford, Chrysler and GM account for approximately 76% of US passenger Vehicles, Toyota, Nissan and Honda, Subaru and Mitsubishi account for 18%. The European automakers, BMW and Mercedes makeup nearly 2%. (Global Foresight, Inc. 2006 Report on Industry Trends). Over the years several mergers and acquisitions occurred within the industry and contributed to this global view. Some of the mergers and acquisition are: Chrysler merging with Daimler-Benz, to form the new Daimler-Chrysler; and buying stake in Mazda, Mitsubishi and Hyundai, and Fiat merged with BMW and Mercedes and has formed an alliance with Daimler- Chrysler. Ford purchased Sweden’s Volvo, British Jaguar and luxury line Aston Martin. General Motors bought...
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...word:”Kaizen”. It means „continuous improvement” and is the key word to guide them towards perfection. This paper presents the strategies of Toyota Company in their attempt to gain supremacy in the international market. JEL classification: M16 Key words: global strategy; international markets; technological innovation; hybrid systems; kaizen 1. TOYOTA MOTOR COMPANY Toyota Motor Corporation (TMC) is a multinational company that produces cars, trucks, buses and robots, with headquarters in Toyota City, Japan. Toyota is the largest car manufacturer in Asia and second largest producer. Toyota is one of the three major Asian car manufacturers competing U.S. producers on the world market, the other two are Nissan Motors and Honda Motor. Also the company provides financial services through its subsidiary, Toyota Financial Services, and works in other fields. Automotive products are sold under the names Toyota, Scion and Lexus. Toyota owns a majority stake in Daihatsu and Hino, and 8.7% of Fuji Heavy Industries, manufacturer of Subaru cars. In 2005, Toyota together with Daihatsu Motor Company produced 8.54 million vehicles, almost 500,000 less than General Motors in that year. In July 2006 Toyota exceeded sales of Ford cars, but the American manufacturer has regained a month later. Toyota has a significant market share in U.S., Europe and Africa and is...
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...ternational Production Network One of the major industries that had successfully adopted both the regional as well as the global approach towards locating its production facilities and exploiting locational advantages is the automotive industry which has been predominantly driven by multinational corporations (MNCs) originating from the United States, Japan and Germany. The expansion of the production activities of these MNCs, particularly those originating from Japan, into the economies of East Asia over the past two decades have been primarily responsible for the creation of international production networks which continue to influence the extent of industrial development in the region. The international production networks in the automotive sector have made substantial contributions to East Asian economies in the form of foreign direct investments (FDI) to the host countries, creating new jobs and increasing production, establishing linkages by integrating local firms into their supply network and raising the level of production technology being used within the firm as well as with contracted local supplier companies in order to continually prepare for the challenges brought about by intense competition within a liberalized global trading environment. Regional production networks set up by Japanese MNCs have been known to be one of the strongest and most efficient...
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...Sales of hybrid and plug-in electric vehicles fell to a 16-month low in May, dragged down by real and imagined supply constraints and increased competition from lower-priced gas-powered small cars, reports Edmunds’ AutoObserver.com, the premier online resource for automotive industry analysis. May sales of hybrid and electric-drive vehicles were off 35.8 percent from a year earlier, lead by dramatic declines in sales of Toyota and Honda models. Overall, Toyota and Lexus hybrids dropped 45.1 percent for the month. Honda, the second-largest producer of hybrids, saw its sales in the segment fall 29 percent in May. "For those selling hybrids, it is incredibly bad luck that the Japanese earthquake and associated production disruptions occurred as gas prices were reaching their highest levels in three years," said Edmunds.com Chief Economist Lacey Plache. "While Japanese automakers may well gain back their lost share on other vehicles, hybrids will face an even steeper climb back to previous levels, given the greater and growing competition from fuel-efficient, non-hybrid vehicles." Leading the slump was the decline in Toyota Prius sales, which traditionally account for about half of the hybrid market. A total of 6,924 Priuses were sold in May, down 51 percent from the same month last year. Low supply and higher prices have made the popular hybrid less palatable to consumers. A pricing analysis by Edmunds.com found that the effective cost of a new Prius was $2,500 more in May than...
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...annual vehicle sales in 2010.[3] In 2008, Hyundai (without Kia) ranked as the eighth largest automaker.[4] In 2010, Hyundai sold over 3.6 million vehicles worldwide. Hyundai operates the world's largest integrated automobile manufacturing facility[5] in Ulsan, which is capable of producing 1.6 million units annually. The company employs about 75,000 persons worldwide. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms. Contents [hide] 1 History 1.1 Research and Development 1.2 Business 1.3 Hyundai in North America 1.3.1 United States 1.3.2 Hyundai in Canada 1.4 Hyundai In India 1.5 Hyundai in Europe 1.6 Hyundai in Turkey 1.7 Hyundai in Egypt 1.8 Hyundai In Russia 1.9 Hyundai in China 1.9.1 Beijing Hyundai 1.9.2 Hawtai partnership 1.9.3 Commercial vehicles 1.10 Hyundai in Japan 1.11 Hyundai in the Philippines 1.12 Hyundai in New Zealand 2 Electric vehicles 3 Environmental record 4 Motorsport 5 Model lineup 5.1 SUVs and vans 5.2 Commercial vehicles 6 Concept car 7 Corporate social responsibility 8 Controversies 9 See also 10 References 11 External links [edit]History The world's largest automobile manufacturing plant in Ulsan, South Korea, produces over 1.6 million vehicles annually. Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947. Hyundai Motor Company was later established in 1967. The company's first model, the Cortina, was released in cooperation with Ford Motor Company...
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...Department of Business, St. Thomas University, 16401 NW 37th Avenue, Miami Gardens, FL 33054 Contact: b0771276@stu.edu Introduction 2009, by the impact of the economic downturn in North America, the auto market is also showing a downward trend, the U.S. auto market, sales reached bottom in recent years, a decline of more than 20%. With the slow recovery of the economy in North America, as well as various stimulus policies play a role, so that the downward trend in remission. In 2010, total sales of U.S. automotive (car, SUV, MPV, pickup truck) reached 11,590,274, an increase of 11% year-on-year, U.S. vehicle sales remained year-on-year growth of 11% in January-July 2011. Undergo the shrinking of automobile market, although the United States rely on to curb the momentum of a sharp decline in the automotive market policy factors to a certain extent, the government "TM" subsidies just one pin short-term cardiac and unable to drive the stable recovery of the automotive market. The decline of the Big Three, but also to the global automotive industry, the research and development of new automotive technologies put on the agenda, energy-saving, environmentally-friendly automotive products, technology has become so rampant, global vehicle manufacturers and parts manufacturers are widely expand the exploration of energy-saving technologies and products . Overall, in order to focus on the development of electric...
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...units sold out of 14 million total vehicle sales in the United States. By 1999, the percentage of the total market had increased and total sales were higher. SUVs/light truck sales were 8.2 million of 16.4 million units sold.21 47.6 percent of Ford Motor Company's sales are of SUVs, primarily its Ford Explorer and larger Expedition, but also of its even larger Excursion. These vehicles took the place of the truck-like Bronco and smaller Bronco II. The largest players in the SUV market (with the number of units sold in 2000) are as follows: 22 [pic] In 1997, most auto manufacturers expanded their SUV offerings and entered the luxury SUV market. These SUVs, with prices around $50,000, featured in-vehicle televisions and VCRs, leather interiors, and all the amenities of luxury cars. The new market entrants are listed below: [pic] By 2000, the U.S. segment of the luxury SUV market was 80.5 percent.23 At that time, SUV purchases constituted one of every five auto sales in the United States and were the highest-margin products in all the automakers' lineups .24 Profits per SUV averaged $ 10,000 per unit. Profits on the Ford Excursion were at the top of the field at $18,000 per unit. At that time, SUVs comprised 20 percent of all of Ford's vehicle sales and accounted for the majority of Ford's profits.25 By the summer of 2001, there were some indications of a slowdown in the SUV market. Many attributed the decrease in sales to the price of gasoline and its escalation...
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...Luo May 6, 2005 International Motor Vehicle Program, MIT Index 1 Overview of Current Chinese Automotive Industry……………1 2 The Burgeoning Independent Chinese Auto Companies………9 3 Case Study: Chery Automobile Company………………………14 3.1 Introduction………………………………………………………… 14 3.2 Characteristic Analysis…………………………………………….. 18 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 Technical Capabilities………………………………………………….18 Production Management……………………………………………….24 Product Characteristics……………………………………………….. 25 Intellectual Property…………………………………………………... 29 Exportation Strategies……………………………………………........33 Enterprise Culture…………………………………………………….. 36 3.3 Comparative Analysis ……………………………………………....36 4 Conclusions………………………………………………………. 42 References…………………………………………………………….47 1 Overview of Current Chinese Automotive Industry China’s first automobile manufacturing base, FAW (First Automobile Works), was built 50 years ago. From then on for over 30 years, there was no big progress in the Chinese automotive industry on both production and technology sides. Production capacity was low, and technology was outdated. From the middle 1980’s, with the establishments of joint ventures, the Chinese automobile industry began to develop faster than before. So far, all of the world's major automakers, such as General Motors, Toyota, Ford, Volkswagen, DaimlerChrysler, Nissan-Renault, PSA Peugeot Citroen, Honda and BMW, have established joint ventures in China*. In particular, the joint ventures control...
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...thank the University of Mumbai for giving me chance to do this project. I would like thank my Principal, Dr. Madhavi.S.Pethe for providing the necessary facilities required for completion of this project. I would also like to express my sincere gratitude towards my project guide PROF. MRS N.A. NERURKAR whose guidance and care made the project successful. I would like to thank my college library, for having provided Various reference books and magazines related to my project. Lastly I would like to thank each & every person who directly or indirectly helped me in completion of the project especially my parents & peers who supported me throughout my project. Content a) Introduction b) History c) Toyota’s Global Vision d)...
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...connection with its relationship to parent General Motors and its rivalry with Ford. Chevrolet has a long history of success in developing and marketing cars, trucks, and SUVs that are practical, sporty, and affordable. The brand's relationship with General Motors is both a strength and a weakness, especially in the aftermath of the federal government's financial bailout of General Motors in 2008. Government demands for improved fuel economy and ever changing customer needs and preferences will be constant challenges as Chevrolet looks toward its next 100 years. Themes: Product innovation, product mix, branding, product strategy, competition, corporate reputation, evolving technology, customer loyalty, government regulation, international marketing General Motor's (GM) Chevrolet brand celebrated its 100th anniversary in 2011. Throughout its history, Chevrolet has launched many different vehicle models, some of them widely successful and others deleted from the product mix shortly after introduction. Over the years, the company has transitioned from an American icon into a worldwide brand known for quality and durability. Despite numerous successes and failures in its history, including the recent bankruptcy and bailout of parent company GM, Chevrolet is still going strong after a century of product innovation. A History of Product Innovation Ironically, Chevrolet exists because of its top competitor, Ford Motor Company. William Durant founded Chevrolet in 1911 to compete head...
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...outcomes of the SWOT analysis conducted for Ford Motor Company. The SWOT analysis will look at the strengths, weaknesses, opportunity, and the threats that Ford Motor faces. Next, part II of the business analysis will review Fords income statement, balance sheet and cash flow to determine the financial health of the company. Last, part III of the business analysis will review the strategic initiatives of Ford Motor Company relating to the organizational and operational adaptations to the changing automobile market. SWOT Analysis The reduced availability of fuel and the economic distress of Ford suppliers place the company in potential risk. The world has experienced great woes in regard to fuel availability. Events beyond car manufactures control have caused consumers to take a second look at the way they purchase automobiles. As gas prices increase consumers seek price effective ways to travel and transport goods. SUV’s, V-8 engine cars and other gas guzzling vehicles abate consumer purchases. Ford must combat the potential risk of consumer purchase decline by producing fuel efficient vehicles while making up profit losses in the slump of sales in major Ford models such as the Expedition, Explore and the F-150, super Duty and Ranger. The following will review the outcomes of the SWOT analysis conducted for Ford Motor Company. The SWOT analysis will look at the strengths, weaknesses, opportunity, and the threats that Ford Motor faces. Finally the information gained...
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