Automotive Industry and Company Backgrounds

AUTOMOTIVE INDUSTRY
AND COMPANY
BACKGROUNDS
By:
Eli Tuttle
Adam Saranko
Patrick Salyer
Mary Lacy
Kelsey Tissue
Overview
 Industry History
 Industry Structure
 Sales and Profits
 Micro Forces
 Macro Forces
 Industry Prognosis
 Individual Companies
 General Motors
 Ford
 Toyota
 Honda
 Mazda

History

 NAICS/SIC codes
 1769 – First Self-propelled, steam car

 1886 – First gasoline-powered car





 Micro Forces  1900’s – Henry Ford’s assembly line

 Macro Forces  1930’s and 40’s – World War II’s affect

 1970’s – Japan becomes a world
 General
competitor
Motors
 Ford
 Toyota
 Honda
 Mazda

Industry Structure

 Concentrated

 Vast majority of world market share
 is controlled by less than 10

companies
 Micro Forces  Toyota, the global leader with 13.3%

 Macro Forces

GlobalMarketShare
18%
 Industry Prognosis 16% GM
14%

12% Toyota
10%
 Individual Companies 8%
Ford
M
 General 6%
S
h
e
a
k
DaimlerChrysler/Daimler
r
t
4% AG*
Motors 2%
0%
 Ford
2004 2005 2006 2007 2008
 Toyota Year
 Honda
 Mazda
Source: Datamonitor

Industry Structure

 Major Markets

 North America

 Europe

 Asia
 Micro Forces

 Macro Forces GlobalMarketSharebyGeography

 45%
40%
 Industry Prognosis 35%
30%

25%
20% United States
M
15%
S
h
Europe
e
a
k
r
t
10%
 General Asia-Pacific
5%
Motors 0%
 Ford 2003 2004 2005 2006 2007 2008
Year
 Toyota
 Honda
 Mazda
Source: Datamonitor

Industry Structure

 Economic downturn brings spinoffs

and M&A’s


 GM ditching Hummer, SAAB, etc.


 Micro Forces


 Macro Forces
 Volkswagen & Porsche



 General
Motors
 Ford
 Toyota
 Honda
 Mazda

Sales and Profits






 Micro Forces

 Macro Forces


 General
Motors
 Ford
 Toyota
 Honda
 Mazda
Source: Ward's Auto


Sales and Profits



Automobile Manufacturers Ranked by Profit
 Industry Structure 2001 2003 2004 2005 2006 2007

Daimler 25 12 8 5
 Sales and Profits Chrysler
 Fiat 23 27 31 9 10 9
 Micro Forces Ford 27 14 6 8 27 26
GM 10 3 5 24 26 27

 Macro Forces
Honda 4 4 4 3 2 5

 Industry Prognosis Nissan 2 2 3 2 3 7

 Renault 7 5 2 4 5 6
 Individual Companies Volkswagen 3 9 11 11 7 2
 General
Motors Daimler 4 3
 Ford
Chrysler 11
 Toyota
 Honda
 Mazda
Plunkett’s Research Online “Automobile Industry Almanac” 2003-2009


Micro Forces





 Micro Forces

 Macro Forces


 General
Motors
 Ford
 Toyota
 Honda
 Mazda
Datamonitor Company Report: Toyota Motor Company, 2009


Macro Forces


 Economic/Political
 

 Micro Forces
 Technological

 Macro Forces

Demographic

 Industry Prognosis 

 General Motors
 Ford
 Toyota
 Honda
 Mazda

Macro Forces


 Economic/Political
 Industry Structure  1975 CAFÉ (Corporate Average Fuel
Economy)


  Since 1983 automakers have paid over
 Micro Forces $500 million in penalties

 Macro Forces  High Price Oil 1980s


 1980s Economical recession

 2009 Government bailouts (Global
 Individual Companies recession)
 General Motors
 Ford
 Regulations on Green House Gas
 Toyota Emissions penalties increasing in years
 Honda 2004-2012
 Mazda

Macro Forces


 Industry History  Technology
 Industry Structure  Hybrids

 Sales and Profits  Electric/Battery powered cars


 Micro Forces  BMW developed 5.4 L Triton


 Macro Forces  2020 Fuel cell technology



 General Motors
 Ford
 Toyota
 Honda
 Mazda

Macro Forces

  Demographics

 Industry History  China


○ 4th largest producer of automobiles
○ 1990 German manufacturing plants
increased by 440%


 ○ 1988 3% of international locations
 Micro Forces ○ 2004 10% international locations

 India
 Macro Forces

○ 2006 Exports increased by 12.9%
passenger vehicles
 ○ Exports commercial vehicles increase
 Individual Companies 26%
 General Motors ○ Today 10-20% cheaper for USA
 Ford companies
 Toyota
○ 50% cheaper for European firms
 Honda
 Mazda
○ Today Exports $4.1 billion
○ Estimated Exports 2016 $35 billion
○

Industry Prognosis


 Production in 5 years to increase

19%
 Sales and Profits  Immerging manufacturers:

 Micro Forces China/India

 North American production may

 Macro Forces

decrease


 General Motors
 Ford
 The World demands high efficiency
 Toyota
 Honda
and low carbon emission
 Mazda

General Motors

Overview


 History
 Industry History 


 Industry Structure  SWOT Analysis
 Sales and Profits 


 Micro Forces  Strategies
 Macro Forces 


 Industry Prognosis  Performance
 Individual Companies 
 General
 Ford
Motors  Prognosis
 Toyota
 Honda
 Mazda

History

  Founded September 16, 1908



 Industry Structure  By William C. Durant




 Micro Forces  In Flint, Michigan


 Industry Prognosis  Started with only Buick brand
 General

Motors
 Ford  Later that year acquired Oldsmobile
 Toyota
 Honda 
 Mazda
 In 1909 acquired Cadillac, Reliance Motor Truck

Co. (GMC Truck) and others
Berg, William "The History of GM - General Motors." The History of GM - General Motors. 10 Dec. 2005 EzineArticles.com. 5
Dec. 2009
<http://ezinearticles.com/?The--History--of--GM------General--Motors&id=110696>.

History

 1910 – Durant lost control to bankers’ trust





 Durant formed Chevrolet Motor car company



 Micro Forces
 1915 – Bought controlling interest of GM

 Macro Forces


 1920 – lost control of GM for good
 General
Motors
 Ford
 Toyota
 Honda
 Mazda
 Berg, William "The History of GM - General Motors." The History of GM - General Motors. 10 Dec. 2005 EzineArticles.com. 5
Dec. 2009

History


 Alfred P. Sloan took control of GM


  Later known to be a marketing genius

 Micro Forces

 Gave consumers the option to customize

 Macro Forces


 General
 Appealed to those who did not want Ford’s
 Ford
Motors
“little black box”

 Toyota
 Honda
 Mazda
Dec. 2009

History


 December 31, 1955 GM became the first
 Industry History company to make more than 1 billion
dollars in a year




 Micro Forces
 GM led global sales 77 years (1931-2007)
 Macro Forces
 

 At its peak employed 349,000 and operated
 General
Motors
150 assembly plants
 Ford
 Toyota
 Honda
 Mazda
Dec. 2009

SWOT Analysis


 Strengths
 Industry History  Strong brand portfolio (norm)

 Industry Structure  Strong dealer network (norm)


 Sales and Profits  Global presence (above norm)


 Micro Forces  Large scale operations (norm)


 Macro Forces 


 Weaknesses
 General
 Inadequate liquidity (above norm)
Motors
 Ford
 Declining financial performance (above norm)
 Toyota
 Honda
 Declining market share (above norm)
 Mazda

General Motors SWOT Analysis. Datamonitor. Feb 16, 2009. Business source premier

SWOT Analysis


 Opportunities
 Industry History  Growth potential outside of US (3.6)

 Industry Structure  Growing global truck market (1.8)


 Sales and Profits  Increasing demand of Hybrid (4.5)


 Micro Forces  New models (4)


 Macro Forces 


 Threats
 General
 Global economy in recession (5)
Motors
 Ford
 Weakening of industry (4)
 Toyota
 Honda
 Intensity of competition (3.6)
 Mazda
 Rise raw material prices (3.6)



General Motors SWOT Analysis. Datamonitor. Feb 16, 2009. Business source premier

Sales


 Year Sales % Change

 2008 2,933,451 -22.6%
 2007 3,789,900 -5.9%

 2006 4,028,992 -8.8%
 2005 4,416,042 -4.4%

 2004 4,617,300 -1.1%
 2003 4,666,868 -2.4%

 2002 4,782,212 -0.9%
 2001 4,824,337 -1.0%
 Micro Forces

 2000 4,875,404 -1.5%
 1999 4,947,359 8.8%
 Macro Forces

 1998 4,548,016 -3.5%
 1997 4,713,247 -0.6%

 1996 4,743,557 -2.0%
 1995 4,841,581 -3.5%
 General
 1994 5,015,926 7.5%
Motors  1993 4,666,988 6.1%
 Ford  1992 4,397,537 1.8%
 Toyota  1991 4,319,730 -12.5%
 Honda  1990 4,934,308 -3.4%
 Mazda  1989 5,106,224 -7.4%

 General Motors’ U.S. sales history, domestic brands, 1908-2008. Automotive News. June 1, 2009.
< http://www.autonews.com/article/20090601/ANA01/905279962>.

SWOT Analysis



 
 
 
 Micro Forces
 
 Macro Forces
 
 
 General 
Motors
 Ford  Steady decline over the years
 Toyota
 Honda  Foreign competitors gaining
 Mazda

 Loosing competitive advantage
 What made GM big was not hard to duplicate


<http://images.forbes.com/images/2003/11/18/gm_423_350.gif>

SWOT Analysis








 

 Micro Forces




 General 
Motors
 Ford 
 Toyota
 Honda
 Steady increase over the years
 Mazda  Drops during wars and recessions
  Practically worthless as of now
 Original GM (Motors Liquidation Corp.) will likely
 never recover
http://finance.yahoo.com/q/bc?s=MTLQQ.PK&t=my&l=on&z=m&q=l&c

The New General


Motors


 On July 10, 2009 NGMCO bought operations
 Industry History and trademarks of General Motors
 Now known as Motors Liquidation




 Micro Forces
 United States now owns 61% of New GM


 Macro Forces

 New General Motors consist of:
Buick, Cadillac, Chevrolet, GMDaewoo, GMC, Holden,


 General Opel, and Vauxhall
Motors
 Ford 
 Toyota
 Honda  Old General Motors also had:
 Mazda
 Hummer, Oldsmobile, Pontiac, Saab, and Saturn


 
http://en.wikipedia.org/wiki/General_Motors

Prognosis

 


 Industry History  The United States and Canada will likely never
 Industry Structure let General Motors go completely under
 They both bailed GM out this time, will probably do it


 again if need be
 Micro Forces


 Macro Forces
  GM now has the opportunity to start fresh and

attempt to regain competitive advantage
 Individual Companies 
 General
Motors
 Ford
 I believe GM will continue to survive and gain
 Toyota
 Honda
some advantage but never again be the
 Mazda powerhouse it once was
 


http://en.wikipedia.org/wiki/General_Motors
Ford

History





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: http ://www.edmunds.com/ford/history.html


Organizational

Definition

 

 Industry History  Mission: One Team, One


Plan, One Goal




 Vision: Greater global sales
 Micro Forces

 Macro Forces

 Values: Ford Motor


Company Funds &
 General Motors
Community Service,
 Ford Environment,
 Toyota
 Honda
Diversity, Education
 Mazda
http://manonamission.blogspot.com/2005/04/fords-f-mission-statement.html
http://www.ford.com/about-ford/company-information/one-ford
http://www.ford.com/our-values/ford-fund-community-service#

Strengths and Weaknesses






Strengths Weaknesses

Extensive dealer Poor financial

network performance
 Micro Forces
 Strong engineering Sluggish performance
 Macro Forces capability in geographic region


High employee Poor Cash Flow
 General Motors productivity
 Ford
 Toyota Achievements
 Honda
 Mazda
Source: Datamonitor: Ford Motor Company


 Opportunities and
Threats


 Industry Structure Opportunities Threats



Growth potential in Recession in North
 Micro Forces China and India America and Europe

 Macro Forces

Increasing demand for Weakening of global
 Industry Prognosis hybrids automotives industry

 General Motors Growing global truck Intense competition
 Ford market
 Toyota
 Honda
 Mazda
Source: Datamonitor: Ford Motor Company


Strategies


 Industry History  Corporate
 Industry Structure  Focus sales in America and Europe

 Sales and Profits  Focus manufacturing in India and

China

 Micro Forces
 Business

 Macro Forces
 Beginning cost leadership: producing



affordable cars for American
 General Motors  Moved towards differentiation with
 Ford
 Toyota the purchase of Volvo (cars)
 Honda
 Mazda
 Continuous Research and
Development

 Innovation
http://www.ford.com/about-ford/investor-relations/company-reports/annual-reports

Annual

Profitability


 FordMotor Company
 Sales and Profits 5,000,000

0
 Micro Forces
-5,000,000

-10,000,000
UD
 Macro Forces
So
la
rs
d
u
h
in
o
a
s
t
)(
 -15,000,000
 Industry Prognosis -20,000,000

Year
 General Motors
 Ford
 Toyota
 Honda
 Mazda

Sales


 Industry Structure Auto Sales over 10 years



 $160.000
 Micro Forces $155.000
Sales in $ billions

$150.000
 Macro Forces $145.000

$140.000
 Industry Prognosis Sales

$135.000
$130.000
 General Motors $125.000
 Ford $120.000
 Toyota $115.000
 Honda
2000
2001
2007
1999
2002
2003
2004
2005
2006
2008
 Mazda
 Years

Stock

$8.90/share





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda

Stock





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
http://quote.morningstar.com/stock/s.aspx?t=F

Return on Equity

 Years Stockholders' Equity
 Industry Structure Stockholders' Equity
 2007 $ 5,628.00
 Sales and Profits $20,000.00
 2006 $ (3,465.00)
$ Stockholders' Equity
 Micro Forces $15,000.00
 2005 $ 13,442.00
$10,000.00
 Macro Forces Stockholde
 2004 $ 17,437.00 Equity
$5,000.00
 2003 $ 13,459.00
$-
2007 2006 2005 2004 2003
 General Motors
$(5,000.00)
 Ford
Year
 Toyota
 Honda
 Mazda

Competitive

Advantages

  Global Power-Train Strategy

Cleveland Engine Plant #1
Flexible techniques

 Micro Forces

 Macro Forces Manufacturing equipment (same)



 Industry Prognosis Cross shipping
 General Motors
 Ford
 Toyota
 Honda
 Mazda
http://media.ford.com/print_doc.cfm?article_id=13633

Market Share

  Europe 2009 – 10.1%


 USA 1998 25%


 Micro Forces


 Macro Forces

 Industry Prognosis  USA 2009 15.2%


 General Motors
 Ford
 Toyota
 Honda
 Mazda
http://web.ebscohost.com/bsi/detail?vid=3&hid=7&sid=cc8cfcc9-8b66-4b87-a52c-455629f6835c%40sessionmgr11
&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=buh&AN=44925516#db=buh&AN=44925516

Future

 2009 input navigation system in 5 cars

 2010 EcoBoost Engine in F150 and

Taururs
  Parking assistant technology
 Micro Forces
  Producing more fuel efficient automobiles
 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
http://www.ford.com/innovation/automotive-technology
http://www.ford.com/about-ford/news-announcements/press-releases/press-releases-detail/pr-ford-vehicles-equipped-with-31551
http://www.ford.com/about-ford/news-announcements/press-releases/press-releases-detail/pr-ecoboost-engine-attracts-younger-31419
Toyota

History

Lexus Lexus

Toyota launched introduced
 Industry Structure Motor Sales
Toyota Motor in US in Japan
U.S.A., Inc. Toyota Motor Prius is
Co., Ltd. established Corporation is

established launched
 Sales and Profits formed 1989 2005

1937 1957 1997

 Micro Forces 1982

 Macro Forces

 1950
1965 1992 2007
Toyota Motor 2000-2002
Sales Co., Ltd. Awarded Deming Begin Begin
 General Motors
established Application 1988 productio Begin production
 Ford Begin n in the production in in Russia
Prize for China, France,
 Toyota quality control manufacturing UK
in the US and Poland
 Honda
 Mazda
Source: http://www2.toyota.co.jp/en/history/index.html

Mission

 Industry History  “to manufacture automobiles that

meet the needs of society and

enrich people's lives."


 “to take root in the communities


 Micro Forces
we serve by creating jobs,


 Macro Forces

earning profits and paying

taxes, thereby enriching the
 General Motors local economies where we
 Ford
 Toyota operate."
 Honda
 Mazda - Akio Toyoda President, Toyota
 Motor Corp June 2, 2009

Vision


 Honor the language and spirit of the law of every nation
and undertake open and fair corporate activities to be

 Industry History a good corporate citizen of the world.


 Respect the culture and customs of every nation and
contribute to economic and social development
through corporate activities in the communities.



 Dedicate ourselves to providing clean and safe products
 Micro Forces
and to enhancing the quality of life everywhere

through all our activities.
 Macro Forces
 Create and develop advanced technologies and provide
outstanding products and services that fulfill the
needs of customers worldwide.


 Foster a corporate culture that enhances individual
creativity and teamwork value, while honoring mutual
 General Motors
trust and respect between labor and management.
 Ford  Pursue growth in harmony with the global community
 Toyota through innovative management.
 Honda  Work with business partners in research and creation to
 Mazda achieve stable, long-term growth and mutual benefits,
while keeping ourselves open to new partnerships.



Source: http ://www2.toyota.co.jp/en/vision/philosophy/index.html

Values





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: http ://www2.toyota.co.jp/en/vision/philosophy/index.html


Company

Structure





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Datamonitor Company Report: Toyota Motor Corporation, 2009


Sales





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Plunkett's Automotive Industry Almanac 2003 & 2009


 Corporate-Level
Strategies





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


 Business-Level
Strategies





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


Profits





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Plunkett's Automotive Industry Almanac 2003 & 2009


Market Share





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


Stock

Performance





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


Strengths





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


Weaknesses





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


Opportunities





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


Threats





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda


Prognosis

 Industry History  Focus R&D on hybrid/electric

technology; introduce hybrid

technology to all models by 2020


 Will remain an industry leader and


 Micro Forces
continue to increase global


 Macro Forces

market share by entering

emerging markets (China & India)
 General Motors
 Ford
 Increased market share for
 Toyota
 Honda
individual regions due to “regional
 Mazda vision”


Fujio Cho, Toyota Chairman, July 2009 Annual Report

Honda

History

Begins

Honda sells manufacturing Honda
 Industry Structure first
Soichiro Honda Automobile EPA ranks Civic cars in U.S. introduces
releases first in U.S. the most fuel- first hybrid

product
 Sales and Profits efficient 1982

1947 1969 1999

 Micro Forces 1977

 Macro Forces

 1959
1973 1984
Honda opens 2008
 General Motors first store in Civic is a hero Introduc
America in the U.S. 1979 e first Clarity first
 Ford Begins car to line with
energy crisis
 Toyota manufacturing make 50 hydrogen fuel
motorcycles mpg cells
 Honda
in the U.S.
 Mazda
http://corporate.honda.com/america/timeline.aspx

 Organizational
Definition

 Mission

 “Maintaining a global viewpoint, we are
 Industry Structure dedicated to supplying products of the
highest quality, yet at a reasonable price


 for worldwide customer satisfaction.”
 Micro Forces
  Vision
 Macro Forces

 “Dreams inspire us…to meet the particular
 Industry Prognosis needs customers…around the world…”
 Values

 General Motors
 “Respect for the individual. The Three Joys
 Ford
 Toyota (buying, selling and creating)”
 Honda
 Mazda


Sales


 Industry Structure Honda Motor Co Ltd


6,000,000
 Sales and Profits 5,000,000

4,000,000
3,000,000
 Micro Forces 2,000,000
rd
s D
U
S
o
la
1,000,000
d

u
th
o
a
s
)(in
0
 Macro Forces

 Year
 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: Plunkett's Research Online


Market Share





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: Ward's Auto


SWOTs





 Micro Forces

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: Datamonitor

Strategies

  Corporate-Level
  How to become the best in

China/India

 Micro Forces
 Business-Level

 Macro Forces
 How to compete in current markets

 General Motors
 Ford
 Toyota
 Honda
 Mazda


Prognosis

  If economy gets worse
  Already diversified
  If people “stay green”
 Micro Forces
  Set to stay in U.S.
 Macro Forces
  If successful in India/China

 Will be hard to compete with
 General Motors
 Ford
 Toyota
 Honda
 Mazda

Mazda

History

  Toyo Cork Kogyo Corporation


 Becoming an International

 Micro Forces

 Macro Forces
Company



 General Motors
 Relationship with Ford
 Ford
 Toyota
 Honda
 Mazda
Source: mazda.com

 Organizational
Definition

 Mission

 “With passion, pride and speed, we actively
 Industry Structure communicate with our customers to deliver
 insightful automotive products and services
 Sales and Profits that exceed their expectations.”

 Micro Forces
 Vision
  “To create new value, excite and delight our
 Macro Forces customers through the best automotive
 products and services.”

 Values
 Individual Companies  “We value integrity, customer focus, creativity,
 General Motors and efficient and nimble actions and respect
 Ford highly motivated people and team spirit. We
 Toyota positively support environmental matters,
 Honda safety and society. Guided by these values,
 Mazda we provide superior rewards to all people
associated with Mazda.”

Source: mazda.com

SWOTs


 Relationship with Ford
 

 Micro Forces
 International Competition

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: mazda.com & Plunkett's Research Online


 Corporate-Level
Strategies


 “World Wide Brand Positioning”
 

 Micro Forces
 What is WWBP?

 Macro Forces

Target Market


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: mazda.com

 Business-Level
Strategies


 Customer Focus
 

 Micro Forces
 Differentiation

 Macro Forces


 General Motors
 Ford
 Toyota
 Honda
 Mazda
Source: mazda.com

Market Share

 Industry History US Market Share


2000 1.5%

2001 1.6%

2002 1.6%
 Micro Forces

2003 1.6%
 Macro Forces
 2004 1.6%
 2005 1.5%
 General Motors 2006 1.7%
 Ford
 Toyota
2007 1.9%
 Honda
 Mazda
2008 2.0%
Source: Mazda.com & Plunkett's Online Research


Sales


Mazda Sales Worldwide

40,000,000
35,000,000
Sales (billions of $)

30,000,000
 Micro Forces
 25,000,000
 Macro Forces 20,000,000
 15,000,000
 Industry Prognosis 10,000,000

5,000,000
 Individual Companies 0
 General Motors
2000 2001 2002 2003 2004 2005 2006 2007 2008
 Ford
Year
 Toyota
 Honda
 Mazda
Source: mazda.com & Plunkett's Online Research


Profitability


Mazda Corp. Profitability

1,500,000
1,000,000
Profit (billions of $)

 Micro Forces

500,000
 Macro Forces 0

2000 2001 2002 2003 2004 2005 2006 2007 2008
 Industry Prognosis (500,000)

 Individual Companies (1,000,000)

 General Motors
(1,500,000)
 Ford
 Toyota Year
 Honda
 Mazda
Source: mazda.com & Plunkett's Online Research

AUTOMOTIVE INDUSTRY
AND COMPANY
BACKGROUNDS
By:
Eli Tuttle
Adam Saranko
Patrick Salyer
Mary Lacy
Kelsey Tissue

Automotive Industry and Company Backgrounds

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Automotive Industry and Company Backgrounds

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AUTOMOTIVE INDUSTRY

 1886 – First gasoline-powered car

 Sales and Profits

 Macro Forces GlobalMarketSharebyGeography

 Ford 2003 2004 2005 2006 2007 2008

 GM ditching Hummer, SAAB, etc.

 Volkswagen & Porsche

Sales and Profits

 Sales and Profits

Source: Ward's Auto

Sales and Profits

 Industry Prognosis Nissan 2 2 3 2 3 7

Plunkett’s Research Online “Automobile Industry Almanac” 2003-2009

 Sales and Profits

Datamonitor Company Report: Toyota Motor Company, 2009

 Sales and Profits

 Macro Forces  High Price Oil 1980s

 Sales and Profits  Electric/Battery powered cars

 Micro Forces  BMW developed 5.4 L Triton

 Macro Forces  2020 Fuel cell technology

 Industry History  China

 Sales and Profits

 Micro Forces China/India

  Founded September 16, 1908

 Industry Structure  By William C. Durant

 1910 – Durant lost control to bankers’ trust

 Industry Structure  Strong dealer network (norm)

 Sales and Profits  Global presence (above norm)

 Micro Forces  Large scale operations (norm)

 Industry Structure  Growing global truck market (1.8)

 Sales and Profits  Increasing demand of Hybrid (4.5)

 Micro Forces  New models (4)

The New General

 Sales and Profits

 Sales and Profits

Source: http ://www.edmunds.com/ford/history.html

 Industry History  Mission: One Team, One

 Sales and Profits

Strengths and Weaknesses

Source: Datamonitor: Ford Motor Company

 Industry Structure Opportunities Threats

Source: Datamonitor: Ford Motor Company

 Sales and Profits  Focus manufacturing in India and

 Beginning cost leadership: producing

 Industry Structure Auto Sales over 10 years

 Sales and Profits

 Sales and Profits

 Sales and Profits

 Macro Forces Manufacturing equipment (same)

 USA 1998 25%

 Industry Prognosis  USA 2009 15.2%

1937 1957 1997

 Industry History  “to manufacture automobiles that

enrich people's lives."

 Sales and Profits

 “to take root in the communities

we serve by creating jobs,

 Industry History a good corporate citizen of the world.

 Sales and Profits

 Sales and Profits

Source: http ://www2.toyota.co.jp/en/vision/philosophy/index.html

 Sales and Profits