Group A2 Automobile manufacturing industry Competitors overview Crystal Friend Ernita Harjati Valerie Staffey Lead Competitors •DaimlerChr by sqw40376

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									           Group A2
Automobile manufacturing industry
      Competitors overview
          Crystal Friend
          Ernita Harjati
         Valerie Staffey
     Lead Competitors


•DaimlerChrysler AG
•Ford Motor Corporation
•Honda Motors
•Toyota
Daimler Chrysler AG



             Reference: Yahoo Finance and www.daimlerchrysler.com
                Daimler Chrysler AG
Company History:
•Company founders- Gottlieb Daimler and Karl Benz

•Mercedes automobiles were fitted with Daimler engines and
open the door to the world‟s first car race in 1894

•Original cars had low center of gravity, pressed-steel frame,
light, high-performance engine and honeycomb radiator

•In 1988, Daimler-Benz AG and Chrysler Corporation –
merged to form Daimler Chrysler AG

                                         Reference: Yahoo Finance and www.daimlerchrysler.com
               Daimler Chrysler AG
Company Today:
•Develops, manufactures and distributes passenger cars, light
trucks and commercial vehicles

•Operates in four segments: Mercedes Car Group, Chrysler
Group, Commercial vehicles and Services

•Total Revenue EUR 142.1 billion (USD 192.3 billion) in 2004

•Total employees: 384,723

•Headquarters: EUR-Stuttgart,Germany
               USA- Auburn Hills, MI    Reference: Yahoo Finance and www.daimlerchrysler.com
    Daimler Chrysler AG
            Product Lines


•Maybach            •Dodge

•Mercedes-Benz      •Smart

•Chrysler           •Commercial brands
                    including-
•Jeep                   •Freightliner
                        •Western Star




                              Reference: Yahoo Finance and www.daimlerchrysler.com
            Daimler Chrysler AG
               Financial Overview

•As of 10/28/05:
        Stock (NYSE:DCX): $49.52
        Market Capacity: $50,155 Millions
        Sales: $176,471 Millions

•Debt/Equity (2004): N/A; S&P: 1.3

•Financial Leverage (2004): 5.4; S&P: 5.3




                                            Reference: www.morningstar.com
Daimler Chrysler AG
  Financial Overview




                       Reference: Yahoo Finance and www.daimlerchrysler.com
                      Daimler Chrysler
                        S.W.O.T Analysis
•Strengths-
    Clear, four-pillar strategy: global presence, superior products,
    leading brands, and innovation/technology leadership
•Weaknesses-
    Increased market penetration and lower demand. Speed and
    efficiency of R&D efforts
•Opportunities-
    Signs of economic recovery in Japan, continued energy research
•Threats-
    Fuel resources and regulation, weaker economic growth and
    demand for automobiles worldwide, rising crude oil prices, higher
    interest rates
                                               Reference: Yahoo Finance and www.daimlerchrysler.com
             Daimler Chrysler AG
                     Innovation
•Energy for the Future
   •DaimlerChrysler Commercial Buses North America
   has received a contract for 500 Orion VII hybrid-
   electric buses from New York City transport services
   •Fuel efficiency and resource research

•Accident-Free Driving
   •Distronic system is equipped with a 77-GHz radar
   sensor that measures the distance to the vehicle in
   front, up to a separation of 150 meters

•Automotive Visions & Further Innovations
                                        Reference: Yahoo Finance and www.daimlerchrysler.com
              Daimler Chrysler AG
                       Headlines

•Significant increase in Daimler Chrysler‟s Third Quarter
Operating Profit to EUR 1.8 billion (+38%)

•Daimler Chrysler Receives Largest Hybrid Electric Bus
Order to Date

•Mercedes Car Group Sold 117,900 cars in
September 2005

•Chrysler Group Achieves 18th Consecutive Month of Sales
Gains on 4 Percent Rise in Sales
                                         Reference: www.aaaa.org and www.daimlerchrysler.com
Ford Motor Company
            Ford Motor Company
              Company History
•Founded on June 16, 1903

•In 1896, Henry Ford invented the Quadricycle. It was
the first "horseless carriage" that he actually built

•Perhaps Ford Motor Company's single greatest
contribution to automotive manufacturing was the
moving assembly line. First implemented at the Highland
Park plant (in Michigan, US) in 1913

•Went public and on Feb. 24, 1956, had about 350,000
new stockholders
                                               Reference: www.ford.com
            Ford Motor Company
              Company Today
Third largest auto manufacturer, behind GM and Toyota

•Designs, manufacturers, and finances passenger cars
and light trucks

•Total Revenue $170 billion
    •86% of total revenue from automobile sales
    •Financial-services arm contributes the remaining
    14% revenue

•Headquarters: Dearborn, MI

•Employees: 327,531
                                               Reference: www.ford.com
   Ford Motor Company
           Product Lines


•Ford                •Volvo

•Lincoln             •Jaguar

•Mercury             •Land Rover

•Mazda               •Aston Martin




                                   Reference: www.ford.com
                    Ford Motor Company
                      S.W.O.T analysis

•Strengths:
       Ford F-150 top selling vehicle in U.S. Ford's primary strength is the
       production of light duty trucks and SUVs. As an example, the "F-
       Series" of truck will had a unit volume of over 750,000 for 2004
Weaknesses:
       The global over capacity of the entire industry
•Opportunities:
       Increase in overseas productions, sales. The product line is
       expanding, the corporate culture is firmly and centered on the
       core business. The distribution channel is one of the best in the
       business with Ford dealerships in over 70 countries
•Threats:
       Domestic and Foreign competition
                                                          Reference: www.ford.com
           Ford Motor Company
            Financial Overview

•As of 10/28/05:
   •Stock (NYSE:F): $8.02
   •Market Capacity: $14,861 Millions
   •Sales: $173,740 Millions

•Debt/Equity (2004): 10.8; S&P: 1.3

•Financial Leverage (2004): 18.2; S&P: 5.3


                                        Reference: www.morningstar.com
Ford Motor Company
 Financial Overview




                      Reference: www.ford.com
Ford Motor Company
 Financial Overview




                      Reference: www.ford.com
                 Ford Motor Company
                      Headlines
•The "Recycling Leadership Award" was given to Ford Motor
Company from the National Recycling Coalition

•Diversity Inc.‟s Top 50 Company for Diversity

•Working Mother‟s Top 100 Place to Work

• Volvo Unveils Two Hot New Concepts At The 2005 SEMA Show

•Ford Delivers Fleet of Hydrogen Focus Fuel Cell Vehicles to
Southeast Michigan

•Latina Style‟s Top 50 Company for Hispanic Women to Work
                                                     Reference: www.ford.com
Honda Motor Corporation
             Honda Motor Corporation

Company History:
•Company founder- Soichiro Honda

•Honda Motor Corp. Ltd., was founded in 1948

•In 1959, the American Honda Motor Company is established
            "We have now established ourselves on solid ground domestically," said
            Senior Managing Director Takeo Fujisawa. "Eventually, we'll have to aim to
            be number one worldwide. So, with that in mind, why don't you go check
            out the overseas market?"

•In 1963, Honda's first sports car (S500) and light truck
(T360) released

                                                      Reference: Yahoo Finance and www.world.honda.com
         Honda Motor Corporation
Company Today:
•Develops, produces and manufactures motor products
ranging from small general-purpose engines to specialty
sports cars

•Global Operations
   Honda Japan, Honda South America, Honda Asia/Oceania, Honda
   North/Central America, Honda Europe/Middle East/Africa, Honda China.

•Total Revenue JPY133.7 billion (USD 1,181 million) at end
of Q2 2005

•Total employees: 137,827

•Headquarters: Tokyo, Japan                  Reference: Yahoo Finance and www.world.honda.com
         Honda Motor Corporation
               Product Lines


•Honda                  •Honda Power Equipment

•Acura                  •Honda Marine

•Honda Motorcycles      •Honda Engines




                               Reference: Yahoo Finance and www.world.honda.com
         Honda Motor Corporation
                Financial Overview

•As of 10/28/05:
       Stock (NYSE:HMC): $27.33
       Market Capacity: $52,549 Millions
       Sales: $80,544 Millions

•Debt/Equity (2004):0.5 ; S&P: 1.3

•Financial Leverage (2004): 2.8; S&P: 5.3




                                            Reference: www.morningstar.com
Honda Motor Corporation
    Financial Overview




                         Reference: Yahoo Finance and www.world.honda.com
              Honda Motor Corporation
                      S.W.O.T. Analysis
•Strengths-
   World‟s leader in motorcycle sales, continuous advancement of the
   Civic, increased unit sales in Europe and continental Asia, breadth
   and depth of product lines
•Weaknesses-
   Increased market penetration and lower demand. Speed and
   efficiency of R&D efforts
•Opportunities-
   Signs of economic recovery in Japan, healthy motor sport market in
   US, market introduction of “all-new” and “next generation” models
•Threats-
   Fuel resources and regulation, weaker economic growth and
   demand for automobiles worldwide, rising crude oil prices, higher
   interest rates, currency conversion rates
                                                Reference: Yahoo Finance and www.world.honda.com
                Honda Motor Corporation
                               Headlines

•Honda Sets All-Time Records for Overseas and Worldwide
Production for the First Half of Fiscal Year

•High strength in hallmark for new Accords.
   Nearly 50% of each uni-body for Honda Motor Co‟s Accord sedan and coupe
   models is made of high strength steel

•Honda, VW spots put safety first: new ads to break mid-October
leave behind sterile crash tests

•Honda Strengthens R&D Capability in Asia Oceania Region By
Establishing Automobile R&D Center in Thailand
                                                 Reference: www.aaaa.org and www.world.honda.com
Toyota
                         Toyota
                     Company History
•First established in 1937 as a spin-off from Toyoda
Automatic Loom Works, one of the world's leading
manufacturers of weaving machinery

•In 1950 the company experienced its one and only strike.
Labor and management emerged from this stoppage firmly
committed to the principles of mutual trust and
dependence, and that corporate philosophy still guides their
growth today

•Toyota launched its first small car (SA Model) in 1947.
Production of vehicles outside Japan began in 1959 at a
small plant in Brazil, and continued with a growing network
of overseas plants                                  Reference: www.toyota.com
                        Toyota
                     Company Today
•Toyota is the world's third largest manufacturer of automobiles
in unit sales and in net sales. It is by far the largest Japanese
automotive manufacturer, producing more than 5.5 million
vehicles per year, equivalent to one every six seconds

•Toyota Motor Corporation is one of the world„s leading
automakers, offering a full range of models, from minivehicles
to large trucks

•Toyota employs 264,000 people worldwide (on a consolidated
basis), and markets vehicles in more than 140 countries

•Head office in Toyota City, Aichi                   Reference: www.toyota.com
             Toyota
          Product Lines

•Toyota            •Hino

•Lexus             •Daihatsu

•Toyota F1 and     •Diversified operations include
Motorsports        telecommunications, prefabricated
                   housing and leisure boats




                                     Reference: www.toyota.com
                         Toyota
                     S.W.O.T analysis
•Strengths:
       Small cars in times of high gas prices, low cost production,
       High quality, repeat buyers, Lexus most popular luxury
       brand, Toyota Camry No. 1 selling car in U.S.

•Weaknesses:
     World market is in over supply of cars. Car market may
     slow down production. The company needs to keep
     producing cars in order to retain its operational efficiency




                                                   Reference: www.toyota.com
                         Toyota
                     S.W.O.T analysis
•Opportunities:
      Lexus and Toyota now have a reputation for manufacturing
      environmentally friendly vehicles. Lexus has RX 400h hybrid,
      and Toyota has it Prius
•Threats:
      Product recalls are always a problem for vehicle
      manufacturers. In 2005 the company had to recall 880,00
      sports utility vehicles and pick up trucks due to faulty front
      suspension systems. The company is also exposed to any
      movement in the price of raw materials such as rubber, steel
      and fuel. Tremendous competitive rivalry in the car market
      (new entrants from China, South Korea, and new plants in
      Eastern Europe)
                                                   Reference: www.toyota.com
                    Toyota
              Financial Overview

•As of 10/28/05:
        Stock (NYSE:TM): $91.25
        Market Capacity: $149,106 Millions
        Sales: $172,740 Millions

•Debt/Equity (2004): 0.5; S&P: 1.4

•Financial Leverage (2004): 2.7; S&P: 5.3




                                             Reference: www.morningstar.com
      Toyota
Financial Overview




                Reference: www.Toyota.co.jp annual report
                        Toyota
                       Headlines

•Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) will
produce the hybrid version of the Camry - the first Toyota
hybrid vehicle to be made in North America - beginning in the
second half of 2006, with an expected monthly production
target of 4,000 units

•Toyota's Fourth Environmental Action Plan, announced in
May, calls for the company to become "a leader and driving
force in global regeneration by implementing the most
advanced environmental technologies"


                                                  Reference: www.toyota.com
GM vs. Competition
                     Chart Comparison:

                                      Market Capacity

                    Ford, 15,083.83

GM, 15,376.04


 Chrysler,
49,425.82
                                                           Toyota,
                                                         147,504.74



             Honda, 52,491.21



                                                        Reference: www.morningstar.com
                      Chart Comparison:
                                 Return On Assets

         0.1
        0.08
                                                                           Chrysler
        0.06
                                                                           GM
        0.04
    %




                                                                           Honda
        0.02
                                                                           Toyota
            0
                                                                           Ford
            1998
        -0.02      1999   2000      2001    2002    2003      2004
        -0.04
                                    Year



ROA (%) for 6 years comparing GM and its competitors.
Honda shows to be the highest followed by Toyota and Chrysler.

                                                     Reference: www.morningstar.com
                      Chart Comparison:
                                 Return On Equity

           1
         0.8
         0.6                                                              Chrysler
         0.4                                                              GM
     %




         0.2                                                              Honda
            0                                                             Toyota
            1998
         -0.2      1999   2000      2001   2002     2003     2004         Ford

         -0.4
         -0.6
                                    Year


ROE (%) for 6 years comparing GM and its competitors.
Ford shows to be the first followed by Honda and Toyota.
                                                           Reference: www.morningstar.com
                           Chart Comparison:
                                  Operating Margin (% )

               14.00%
               12.00%
                                                                           Chrysler
               10.00%
                                                                           GM
               8.00%
           %




                                                                           Honda
               6.00%
                                                                           Toyota
               4.00%
                                                                           Ford
               2.00%
               0.00%
                    1998   1999   2000   2001   2002   2003   2004
                                         Year


Operating Margin (%) for 6 years comparing GM and its competitors.
Toyota shows to be the first followed by Honda and GM.
                                                              Reference: www.morningstar.com
Stock Comparison:




                    Reference: www.morningstar.com
           Overall Industry Trends
•Increased R & D Spending
•Lower sales in high fuel intake, SUV vehicles
•Continued innovations in build and manufacturing
•Continued research for more efficient fuel sources
•Large company merger
•Economic boom in Asia- markets in China and India
expected to exceed overall geographic sales

                                        References: The Economist
    GM vs. Competitors- Overall Conclusions
•GM is not as innovative as other competitors.
    GM was not the leader of hybrid vehicle which is in high demand
    right now
    Many new vehicle offered by GM do not appeal to young buyers

•GM offers many rebates / sales incentives to boost their unit
sales
•GM and Ford have decreasing total return % trend performance
compared to Toyota, Honda, and Chrysler who have increasing
return even though GM is the leader at its sales.
•GM is one of industry‟s worst returns on assets
                    Suggestions for GM:
•Redesign their product line to keep leadership in the worldwide
automobile business by interacting directly with the real world
instead of focusing on just automobile shows or high-tech design
(explore other electronic shows, car dealerships, etc).
•Plan to introduce an alternate fuel vehicle or hybrid to compete
with other manufacturers and attract environmentally-conscience
consumers, especially since GM‟s majority of sales are in trucks and
SUV‟s, which tend to use more gasoline.
•Continue to work on drastically reducing health care and pension
costs, starting with decreasing their number of employees.
•Bring back employee discount program to Hummer, Cadillac, and
Saab to boost profits made from GM‟s financing division. In the
meantime, continue to strongly market these products.
                                    References
Company financial information. Retrieved October 27, 2005, from
http://www.morningstar.com

Daimler Chrysler operating profit by segment and company history .Retrieved October 31,
2005, from http://www.diamlerchrysler.com

Daimler Chrysler Headlines. Retrieved November 1, 2005, from www.aaaa.org and
www.daimlerchrysler.com
Economist, The. The global car industry, Extinction of the Predator. September 8,
2005.Retrieved November 7, 2005.
Financial information. Retrieved October___10/28/05__, from http://finance.yahoo.com/

Ford Heritage. Retrieved October 25, 2005 from,
http://www.ford.com/en/heritage/default.htm?referrer=home

Ford Good Works. Retrieved October 25, 2005 from,
http://www.ford.com/en/goodWorks/default.htm?referrer=home
                                     References
Ford financial global overview. Retrieved November 03,2005 from
http://www.ford.com/en/company/investorInformation/comp
anyReports/annualReports/2004annualReport/2004_pdfs.htm

GM has a new model for change. Smith, James. Fast Company. December 2000. Retrieved
November 04, 2005 from “http://www.fastcompany.com/magazine/41/gm.html”

Honda operating data (unit sales breakdown) and company history. Retrieved October 27,2005,
from http://www.world.honda.com

Honda Headlines. Retrieved November 1, 2005, from www.aaaa.org and
www.world.honda.com

Toyota revenues and operating income by region and company history .Retrieved November    03,
2005, from http://www.toyota.co.jp/en/ir/library/annual/pdf/2005/03.pdf

Toyota SWOT. Retrieved October 25, 2005 from
http://www.marketingteacher.com/SWOT/toyota_swot.htm

								
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