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The European Car Industry

VIEWS: 16 PAGES: 31

									The European Car Industry

Andrew Rogan Tiffany Bentley Chris Murphey

Outline
• • • • Leading World Manufacturers Sales and Production Marketing Strategies Effect of War

Leading World Manufacturers
1. 2. 3. 4. 5. General Motors Ford Volkswagen Toyota Daimler-Chrysler

Leading European Manufacturers Volkswagen
• • • • Golf EuroVan Jetta Jetta Wagon • New Beetle • Passat • Passat Wagon

Leading European Manufacturers Volkswagen
• Phaeton
• 12-cylinder engine making 414 horsepower • $55,000 Europe • $75,000 US

Leading European Manufacturers Volkswagen
• Touareg
• 13.6% increase in SUV sale • Combines luxury with offroad

Leading European Manufacturers Mercedes
• • • • • C E S CLK CL • SL • M • N

Leading European Manufacturers Mercedes
• Offer a wide variety of cars and trucks • $24,000-$1 million • New diesel car • 30% better gas mil. • Better for environment

Leading European Manufacturers Porsche
• • • • 911 Boxter Cayenne Carrera GT

Leading European Manufacturers Porsche
• “Porsche is on the upswing” • Offer the new Cayenne SUV • Resale value only drops 23% after 2 years

Sales (world)

Sales (world)

Production (world)

Production (world)

North American Production by Manufacturer (000) units
BMW Daimler-Chrysler Ford GM VW

2001 2002 2003 2004 120 126 161 165
2,873 2,940 2,796 2,775 4,051 4,169 3,906 3,869 5,061 5,446 5,117 4,947 381 340 307 320

European Production by Manufacturer (000) units
BMW Daimler-Chrysler Ford GM VW

2001 2002 2003 2004 776 883 874 980
1,632 1,591 1,546 1,626 2,174 2,104 2,218 2,359 1,804 1,951 1,804 1,896 3,737 3,474 3,388 3,538

Sales (Europe)

Sales (Europe)

Production (Europe)

Production (Europe)

Focus on Domination
• Ford counted about 228,000 Focuses sold from December through April in about 60 countries. • About 24,000 more than the previous topselling car, the Volkswagen Golf.

European View

American View

Marketing
• During the upfront season, advertisers bid for and secure time on shows. • Some hot programs, such as "American Idol," can command as much as $1 million for a 30-second spot.

Marketing (cont.)
• Broadcast network TV is still the highest advertising venue although the impact of TV is declining. • TiVo is up and coming, with Porsche and Acura as the newest automotive companies to advertise. • Though GM is TV's biggest customer, the company continues to look at ways other than TV to reach consumers and is beginning to put more marketing dollars into other media, such as the Internet.

Marketing & The War
• Mercedes-Benz USA LLC had immediately pulled all advertising that it could, excluding high-profile media commitments. • They will soon resume regional commercials but not during war coverage. • GM, the Chrysler Group and Porsche Cars North America Inc. have not changed their media schedules throughout the war. • Ford Motor Co. and the Toyota and Lexus divisions continue to advertise, but not during news coverage.

Effects of War
• Improving the fuel economy of SUVs and other light trucks has become a contentious issue among environmental groups, especially given the war with Iraq.

• US auto sales overall recently fell for the third consecutive month in March, although it was less than what was expected among the war and economic uncertainty.

Effects of War (cont.)
• The German opposition to the war with Iraq is having very little, if any, effect on the willingness of Americans to buy German vehicles.
• Relief that the US market had held up relatively well boosted car stocks across Europe.

Our References:
• • • • • Autoindustry.com Automotive News Automotive News Europe Detroit Free Press Wardsauto.com

Conclusion

• Europe has a strong impact in the car industry not only locally but globally with the United States trailing in a close second.


								
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