November, 2004

Automotive Industry Analysis - GM, DaimlerChrysler, Toyota, Ford, Honda
Overview of Automotive Industry Analysis The development of the automobile came from many different people from different countries. The development stated in 1769 in France, with the invention of a three-wheeler that was powered by steam (Gale, 2003). Then in 1800's the first internal combustion engine was created in Belgian and the first gasoline powered vehicle was constructed in 1885 in Germany (Gale, 2003). Henry Ford built the first car in 1896 (Gale, 2003). He then revolutionized the industry with the invention of the assembly line. The assembly line allowed him to mass produce the cars making them more affordable to the consumers. Political Laws and government regulations have affected this industry since the 1960's. Almost all of the regulations come from consumers increasing concerns for the environment and the concern for safer automobiles. The first safety act passed by Congress was in 1966 and was called the National Traffic and Motor Vehicle Safety Act (Gale, 2004). This act forced manufacturers to improve the safety for the passengers, the driver visibility, and the braking of the car. It also stated that manufacturers had to inform the public when it had a recall on the cars. The motivation for the passing of this safety act was Ralph Nadar's 1965 novel Unsafe at Any Speed: The Designed-in Dangers of the American Automobile. (Gale, 2004) Safety concerns were not the only concerns during this period. There was also growing concern for the environment even before the oil crisis. According to the article "Motor Vehicles and Passenger Car Bodies", Congress passed acts in 1965 and in the 1970's. The Vehicle Air Pollution and Control Act was passed in 1965. This was the first act to set standards for automobile pollution. Then in the 1970's, Congress passed the Clean Air Act that demanded a 90% decrease in automobile emission within the next six years (Gale, 2004). In the 1970's the oil crisis caused another act to be passed. The Energy Policy and Conservation Act of 1975 stated that all automobiles must meet a certain mileage per gallon. The act demanded that all automobiles had to meet a standard of 20mpg by the 1980 model and then 27.5 mpg for the 1985 model. Then in 1992, the Intermodal Surface Transportation Act required the installation of front airbags. (Motor Vehicles and Passenger Car Bodies, 2004) Demographics For many years now, the baby boomers generation has been the main target market for just about every product. As their generation is getting ready to retire and spend less money, the automakers are looking at the younger generations. Right now, the focus is starting to turn towards the baby boomers children (Generation X) who are in their mid 20's and 30's and Generation Y(Winter, 2002). GenYer's are now hitting the age where they are able to buy cars. According to Drew Winter, "Analysts say that five years from now Gen X and Gen Y combined will account for at least 40% of vehicle sales." Americans today are choosing to purchase larger vehicles over passenger size vehicles. Today's generations are still buying the trucks, minivan and especially the SUV's, even with the ridiculous gas prices. It is not only the younger generations either; the boomers who are all reaching the retirement age are more interested in the bigger vehicles (Fetto, 2001). There activities after retirement are way more active then their parents. They are not just sitting around and playing golf or going on vacations. They are still working in some ways and being more active in their grandchildren's lives. Since the boomers are still active, they want to drive the same vehicles that their children drive in order to make life that much easier. Studies show that trucks, minivans and SUV's report increased sales nearly every year (Fetto, 2001). The manufactures target the sales of their cars to certain people and their geographic location. Convertibles are not marketed toward people who live in parts of the world that are cold all year round. A good example of targeting markets is in Paris. A new is trying to be passed that SUVs are not allowed inside the city. They are taking up to much room and the vehicles use a lot of fuel. If this law is passed then SUV's will not be marketed toward people who live in Paris. Another example is that minivans are mainly marketed toward "soccer moms". They are marketed toward the moms because they are perceived, as needed a lot of room to haul kids around and the easy access the minivans provide. Economic The automobile industry has a huge impact on the U.S. economy. The University of Michigan and the Center for Automotive Research stated that this industry is the major user of computer chips, textiles, aluminum, copper, steel, iron, lead, plastics, vinyl, and rubber. (Gale, 2004) The study also showed that for every autoworker there are seven other jobs created in other industries (Gale, 2004). These industries include anything from the aluminums to lead to vinyl. In 2001, the total sales of automobiles were 3.7% of the nation's gross domestic product. This percentage works out to be $375 billion dollars in sales. Technology The internet has affected just about every industry in the world and has also had a huge impact on the automobile industry. A study was conducted by J.D. Power and Associates in 2002 and involved more 27,000 new vehicle buyers. The study showed that 60% of the buyers referred to the internet before making their purchases and out of that 60%,

manufacturers must mass-produce the automobiles so that they are affordable to the consumer. Some of the substitutes are walking. Toyota and Honda were both selling the hybrid vehicles at retail value in 2001. "Early models were unpopular because of slow cruising speeds and lack of performance. American companies started buying foreign manufacturers created some of the largest foreign takeovers. that it takes many suppliers to accomplish this. Another barrier to entry is that it takes an incredible amount of capital to manufacture the automobiles. In the beginning. Automotive Industry Five Forces of Competition Model Threat of New Entrants The threat of new entrants is very low in the automobile industry. All the buyer has to do is sell the car they own and purchase a new one. When there are many suppliers in an industry. Another aspect of the sociocultural is the environmental concerns for the need of fuel-efficient vehicles."(Motor Vehicles) At the end of the 1990's manufacturers was coming up with the technology to produce internal combustion engine with an electric motor. such as more efficiency and lower cost. Bargaining Power of Buyers The bargaining power of the buyers is moderately high. and General Motors and Saab (Gale. If they can not keep their buyers happy then they risk losing them to their competitors. the subway is the most effective means of transportation. automakers did not want to look into the development because of the high cost and the many risks involved. There is even legislation that requires cars to average a certain miles per gallon. Volkswagen. and Nissan Motor Company come together to create a new trade association created the Alliance of Automobile Manufacturers (Gale. Mazda." Concerns for the economy and global warming have caused the automobile industry to develop alternate fuel vehicles. The industry is very mature and it has successfully reached economies of scale. For this to occur. Toyota. electric car production began to be practical. if makes them feel better about themselves. merged with Chrysler Cooperation to form DaimlerChryler A. Ford. In some cities such as New York or Chicago. The buyers have low switching cost if they are not happy. Bargaining Power of Suppliers The bargaining power of suppliers is very low in the automobile industry. Space in the dealerships lots is very limited making it difficult to have a wider variety of inventory. The exchange was originally called NewCo. Substitutes products all depend on the geographic location of the consumer. and seek consistent global regulatory standards (Gale. No one wants to be seen driving an unattractive piece of junk because of what other people will think of him or her. "In August 2002 General Motors announced it was about to begin sending requests for quotes to suppliers through Covisint using a tool called Quote Manager. In order to compete in this industry a manufacture must be able to achieve economies of scale. a car is not as necessary. BMW. Access to distribution channels is another high barrier to entry. they do not have much power. The manufacturers also started merging in the late 1990's. and then it was changed to Convisint. Ford Motor Company. The reasons why the power is not completely high is that the buyers are not large and few in number. the goals of the associations "were to work together on public policy matters of common interest to provide credible industry information and data. . riding bike or taking a train. manufactures can easily switch to another supplier if it is necessary. 2004). Some other big mergers were Ford with Volvo. It takes an extreme amount of capital not only to be able to manufacture the products but also to keep up with the research and development that is necessary for the innovation requirements. and Daimler Chrysler announced in 2000 their plans to create a global online exchange for suppliers and the original equipment manufacturers.G (Gale. The buyers being consumers purchase almost all of the industries output. The manufacturers depend on them to stay in business. In 19998 Daimler-Benz A. In cities such as those. Daimler Chrysler. Anyone who drives a nice vehicle is thought to be wealthy. but by the end of the century. If they want a car then they have to purchase it from a dealership. The automakers decided that electric cars would be the best way to meet the legislation demands. A company must find a dealership to sell their automobiles or have their own dealership.88% went to the auto websites before going and taking a test drive. 2004). Because of new legislation. GM. Many environmentalists are worried about the impact that the gas cars have on the environment. Threat of Substitute Products There are not many substitute products for automobiles. 2004). The organization was to replace the American Automobile Manufactures Association that only consisted of American manufacturers. Society does not like to admit to this but it is very true. The buyers also are a significant portion of the industries revenue. Business-to-business marketplaces have given the industry many opportunities because of the internet. Volvo. Sociocultural Today's society judges people on the type of car you drive. they had no choice but to come up with the technology to make the fuel-efficient cars. According to Motor Vehicles and Passenger Car bodies.G. This is because the manufactures target mini vans to mothers. The buyers do not have the ability to integrate backwards into the industry. For example. There are so many parts that are used to produce an automobile. anyone who drives a mini van is perceived as a soccer mom. There are so many suppliers to this industry. Global General Motors. Manufactures know this happens and targets their markets by these thoughts. Consumers also just feel better when they are driving a nice or new car. 2004).

which would help Iraq's economy recover from the war. General Motors has offered generous plans to attract workers to its plants (Hakim. Other major threats have to deal with worker dissatisfaction. When the different manufacturers advertise they even compare their products to their competitors. and many other aspects of different manufacturers are greatly taken into consideration when deciding what type of vehicle to purchase. president of AsianPacific. Last year. This large amount of spending has reached customers through the first internet coupons worth $500 towards a Buick Regal (Halliday. General Motors would like to institute a dealership network in Iraq (Ridder. and retirement plans fair. For example. Another threat of losing "safety professionals" due to retirement at General Motors has been turned into an opportunity of developing the recruiting and training program at General Motors (Minter. General Motors CEO never thought that the price war he launched three years ago would still be going on. causes other plants in Europe to lay-off close to 12. claims that developing Hybrid cars is the new strategy for General Motors (Stein. automakers are trying to drive down costs by sharing costs through their own global alliances. In this particular case. or promising them the opportunity to come back work when it is available. 2004). The main weakness that General Motors has been battling for the last century is employee satisfaction which leads to constant strikes throughout the corporation.However. 2002). 2004).12 billion on advertising in the United States One reason that General Motors is sitting at the top of the industry could be due to the fact that it also lead the industry in ad spending. Well. It is crucial for every company to try and turn threats into opportunities for improvement and development. General Motors can integrate its operations so each manufacturer can concentrate on its core competencies. A strike in Germany has squeezed some of European production due to lack of two essential parts that are usually provided by the German plants (Three. 1999). such as losing any global market share. but is occurring globally. In terms of taking a threat. This demonstrates the importance of keeping each plant happy. weaknesses. One of the major strengths that General Motors possess is the global awareness and presence it holds in today's market. 2004). quality. or in joint ventures or partnerships with other companies (Harbour. One of General Motors' current projects is releasing two Hybrid cars in China and hopefully more in the United States in the year 2007 (Stein. not all threats can be turned into a positive. and threats. in most places a person must have access to an automobile in order to get around. durability. 2001). Nationally. opportunities. The major competitors are so closely balanced that it increases the rivalry.000 temporary layoffs (G. One of the other reasons there is such high rivalry is that there is a lack of differentiation opportunities. General Motors spent close to $ Troy Clarke. what might be a threat in one category for General Motors. the commercials will focus on areas where the company outperforms its competitors. General Motors has made advances in the EBusiness strategy and technology for the Asian automotive industry.. All the companies make cars. The competitors are compared to one another constantly. and turned this threat into an opportunity. that time has arrived and General Motors is facing a difficult future as . are quite dynamic for General Motors and each can be integrated into another.00 million. This has caused General Motor's market share to fall in the past year (Welch. hours. This entails helping them find other jobs. General Motors today has manufacturing operations in 32 countries and its vehicles are sold in 192 countries (www. and is another method of how General Motors' innovation strategies enables them to remain at the top of the industry. With sales growing at 60 percent in the Middle East last year. 2004). This is crucial to keep employee morale high for those workers who still have a job. The main problem with General Motor's plants in the United States is that they have too much capacity. but no one thought about what would happen when these workers got to the age of retirement. For example. reaching about 15 percent of the global market (Company Press Release). To gain a better idea of General Motors position in today's market. The dissatisfaction of the workers is not only in America. the strikes of one plant in Germany. a strike at one plant or factory can have a domino affect on other plants or factories. Through global alliances. General Motors is currently spending a large proportion of their earnings on health care for their retirees as compared with newer automakers. In order to gain market share in the automobile must gain market share by taking it from their competitors. Managers have been battling with employees and unions on keeping wages. General Motors has plans to make 10. General Motors can stay in business in Europe and continue to satisfy its' customers. 2004). However. which in turns causes them to make bad long-term business decisions. In the past.M. General Motors SWOT Analysis The strengths. For example. Another strength for General Motors is having the largest amount of annual sales at $185. By having such a strong presence globally. and keeping this promise. The price. This has become one of Europe's strategies for the problem where small vehicle continue to dominate the market and provide only small profit margins for General Motors.524. What General Motors needs to do is make sure that the people who are laid off are treated with respect. Leading the industry in sales enables General Motors to spend time and money in its' R&D department. 2004). can turn into an opportunity or become a new strategy for General Motors in the future. Intensity of Rivalry among Competitors Rivalry among the competitors is very strong is this industry. refer to table 1. As one can see. trucks or SUV's. The opportunities for General Motors globally are almost endless and the ways in which General Motors turns threats into opportunities proves why they are number one in the industry.000 jobs across the continent. 2004).

General Motors Collection store was the third highest in net sales at the McNamara Terminal in August. General Motors has recently entered into the retail industry with its first ever General Motors Collection store in Detroit's McNamara Terminal. 2003). The major advantages of improving employee satisfaction are higher worker morale. General Motors also plans on implementing a line of compact pickups which include more car-like creature comforts and style. and an overall sense of corporate loyalty both internally and externally. becomes more loyal to General Motors. if not ahead of the competition with what is going to be the new fad in the years to come. 2002 (Geist. such as CD and DVD players. One of the major strategies which General Motors is changing is the switch from producing seventy percent light trucks to producing seventy percent cars. Implementing the process of improving customer satisfaction is a timely and excruciating process. 2002). If a store enters into a market place and fails miserably. 2003). With everything that General Motors is doing right and with what little it is doing wrong. This change has come about to match what the customers want with one of General Motors' slogans: 'A car for every purse and purpose' (Greensberg. General Motors needs to be extremely careful on how far in the future it is looking ahead. However. in the long run scheme of things. increasing worker satisfaction will have an overall positive effect on the corporation. OnStar has expanded its premium services to let the customer check his or her E-mail as well as trade stock via different voice commands (Galvin. and Accura. and it is crucial that General Motors stays a leader in innovation as well as sales. it hopes to be the leader in the future with hydrogen fuel. General Motors will still be able to contend with the rest of the industry. it must have multiple strategies being implemented at the same time to keep up with the fast. And as has been discussed before. the competition gains a little bit of ground on the leading corporation. Also. As dynamic as General Motors is. However. General Motors does not plan on letting the production of light trucks slip away however. it is essential that much research be put into the location selection. higher productivity. the consumers in the market may . large cities with high tourist rates will have more flow in the shops and will in turn have higher sales. General Motors is first in line when it comes to the HydroGen3 fuel cell prototype. president of GM North America. which increases stakeholders' satisfaction and everyone. enabling General Motors to compete at the same level as its competitors. Innovation is the backbone for any corporation these days. It would be extremely difficult for General Motors to catch up with Honda. If General Motors does not see the customers adapting to Hybrid cars then it might be making a good decision on jumping ahead to the next level of fuel efficiency. If the money to pay for the rising health care costs cannot be found by cutting costs. currently the competition is way behind the rest if its competitors in Hybrid automobiles. Recommendations can be given in the fields of employee satisfaction. With sales on average of $2. It would also be interesting to see if such retail stores could do as well in foreign markets who might not as ego-savvy as Americans and their possessions. By targeting cities that have large manufacturing plants. this retail store is a perfect template for General Motors to use in other cities where General Motors manufacturing is a large part of the community. and their manufacturing of Hybrid cars. Being one of General Motors' main weaknesses. The disadvantage of waiting for the improvement of technology and for it to be shared is of course the waste of time not improving the corporation. Although General Motors is just now releasing a Hybrid car in China. innovation. General Motors will continue to sell to its employees who take pride in where they work. Although General Motors might be the leader in hydrogen fuel in the future. and it takes a lot of time. and new markets. The disadvantages of trying to improve employee satisfaction are that it cost a lot of money to have external consultants work with the corporation to figure out what exactly is wrong. it is imperative that the managers and executives review the policies and procedures which the lower employees must abide by and determine if these rules are fair or not. then management needs to find other ways to give benefits and incentives to the employee staff that will keep everyone happy. workers tend to be more efficient and profit margins rise.000 a day. there is still room for improvement. Recently. Hopefully. and no one can compete with out money. Before General Motors starts putting these collection stores all over the world. General Motors has sped up the pace of innovation with the successful completion of a trans-Europe endurance run for its HydroGen3 fuel cell prototype (Kisiel. Critics have been criticizing General Motors for waiting so long to develop what is now the new wave of vehicles. The retail stores sells merchandise from miniature models of General Motors manufactured cars and racing cars. affordable for those who desire them. With every strike that General Motors goes through. changing pace of the industry. the technology on how to produce Hybrid cars with economy of scale will be shared throughout the industry. As the morale of the worker increases. but America is switching to a more economic commercial car (Guilford. 2001). General Motors has started licensing the technology of OnStar to other companies which might erode its brand name. to hats and t-shirts with its most popular automobiles on them. Another add-on which has become the most popular addon and almost a standard for General Motors vehicles is the OnStar feature. still believes there is a strong market for trucks. Toyota. General Motors has realized that it can make the add-ons. It would only seem wise to be at the same level.these costs of retirement continue to rise. Gary Cowger. It has been recommended by critics across the globe that General Motors should pick up the pace and not let the competition gain an edge in the next few years with the Hybrid cars. Employee satisfaction has a domino effect on the corporation. The advantage of doing so however is that in case Hybrid cars are the future of the automobile industry and not hydrogen fuel. time is money. Open communication and open minds between the managers and the unions' needs to become a must in the General Motors Corporation. the Hybrid cars. 2004).

and more importantly with no strong plan to compete in Asian markets. This partnership will not only allow for greater product visibility for DaimlerChrysler in one of the largest automobile markets. DaimlerChrysler is currently a leader in hydrogen fuel cell technology. There strategy to focus on the entirely new hydrogen technology has left them behind many other major manufacturers in the development of hybrid technology. In the arena of American car makers the Chrysler brand stands out as a leading innovator in vehicle design. Many have speculated this "brain-drain" of Chrysler executives could hurt the innovative reputation of the American brands in DaimlerChrysler's portfolio of manufacturers. The Mercedes Benz brand is the most recognizable world wide. This partnership gives DaimlerChrysler presence in the Asian regions which is does not currently enjoy with its current stable of brands. Hydrogen. Brands such as Dodge and Chrysler are strong in the US. and increase the connection of style and image with DaimlerChrysler vehicles. DaimlerChrysler's partial stake in Mitsubishi was supposed to be an answer to this problem but current drops in Mitsubishi's market share accompanied by other problems has left DaimlerChrysler's future investments in Mitsubishi uncertain. The merger of Chrysler and Daimler Benz which created DaimlerChrysler gave the company a large worldwide presence. What has been billed as a merger between America's Chrysler and Germany's Daimler Benz has turned out to be more of an acquisition of Chrysler by Daimler Benz. By hitching there wagon to hydrogen power and not trying to capitalize on rising hybrid trends DaimlerChrysler could be missing out. has the ability to revolutionize the industry. As other major car companies are preparing to roll out hybrid options for many of there most popular models DaimlerChrysler does not plan to do the same anytime soon. Chrysler is well known for category breaking models such as the PT Cruiser and Plymouth Prowler. Not only will free advertising be gained. Within these brands DaimlerChrysler also has wide variety of automobile products that span all price ranges and model types. The Jeep brand is well known and respected throughout most markets. from economy cars to luxury models. with this come many strengths. This presence is a quality one because DaimlerChrysler is considered to be one of most respected companies worldwide according to a Financial Times survey of world corporate leaders. but have had limited success in other markets. DaimlerChrysler is even represented in the realm of ultra luxury with its Maybach brand which competes directly with manufacturers such as Bentley and Rolls Royce. If or when this is the case DaimlerChrysler's commitment to research and development of the technology will help ensure the company remains on the top of the automotive world. Although DaimlerChrysler is well represented in the American and European markets they are not strongly represented in the Asian markets. General Motors already leads the industry in advertising and by offering the public the choice of supporting their favorite sports car or any General Motors product. General Motors gains free turn form a negative view about General Motors. The growing use of hybrid engines could also cause problems for DaimlerChrysler. This would come about through the association of the store failing to survive and the lack of quality decision General Motors produces. The opposite effects however is what General Motors would like to see. With all of the strengths that come with being a top auto manufacturer every company must also face weaknesses that can arise from the current business landscape and DaimlerChrysler is not immune to these shortcomings. while Mercedes Benz is one of the highest quality luxury car makers in the industry. Mercedes Benz. As the automotive industry continues to move in the direction of globalization it is important for manufacturers to be strongly represented in all large and emerging world markets. considered to be the next big breakthrough in automobile engines. Chrysler. DaimlerChrysler has no brands of its own that command significant market share in either the Japanese or emerging Chinese markets. Brands such as Jeep are recognized worldwide for off-road and SUV vehicles. but as a luxury car maker it is harder to market to a majority of consumers in different markets. This presence is further increased by DaimlerChrysler's strategic partnership with Japanese car maker Mitsubishi. Much of the operations of DaimlerChrysler have also been moved to Germany where current wage rates and labor laws have made it hard for DaimlerChrysler to cut costs and bolster its bottom line. Related to the problem of Asian representation is the reality that none of DaimlerChrysler's brands are truly marketable to worldwide consumers. but customer's brand loyalty will be increased and more cash flow will be available for General Motors. The Dodge Viper is a vehicle that broke away from the mold of other American sports cars to drive the imagination of car buyers. and Jeep. The result is that most top managers of DaimlerChrysler are from Daimler Benz and many of the leaders of Chrysler choose to leave or retire. This means DaimlerChrysler has strong brands that are recognizable in almost every part of the world. but will also allow for sharing of technology between DaimlerChrysler and Mitsubishi. With the evolution and changing environment of the Automotive industry DaimlerChrysler has many opportunities to . but its appeal is limited to the specialized group of SUV and off-road buyers. DamilerChrysler SWOT Analysis As the number two auto manufacturer in total revenues DaimlerChrysler has positioned itself as an industry leader. The DaimlerChrysler umbrella covers many well-known brands such as Dodge.

DaimlerChrysler currently lays claim to passenger vehicle brands such as Chrysler. while the smaller Smart brand produces economical urban vehicles for sale in Europe and the Freightliner brand gives DaimlerChrysler a strong share of the market in the commercial shipping and transportation. Jeep is a top producer of off-road and SUV vehicles. more efficient diesel engines as an alternative to hybrid technology. Even worse. as well as provide opportunities for government subsidies for continuing advancement of the technology. Another great threat is due to DaimlerChrysler's decision to put all its eggs into the hydrogen fuel basket. A current major threat is the shaky alliance between DaimlerChrysler and Mitsubishi. and Technology leadership. They also have ownership of Freightliner. China. With DaimlerChrysler's current shortage of Asian market share there Jeep brand could be a bright spot. With the growing trend of consumerism in China it is currently the fastest growing auto market in the world. DaimlerChrysler also wished to produce strong brands of automobiles with broad product ranges to be offered in these markets. Jeep. These recent developments provide DaimlerChrysler with more chances to push its products into a hugely coveted consumer market. The current downturn of Mitsubishi has left DaimlerChrysler in a very vulnerable condition. In the arena of Technology leadership DaimlerChrysler boasts that it is a world leader in the development of hydrogen fuel cell powered automobiles. representing all vehicle types across all world markets. If the current trend of hybrid engines continues to catch on and grow throughout world markets DaimlerChrysler's reluctance to follow suit could cause loss of market share to rivals who offer better hybrid engines in more vehicle models. if hydrogen proves not to be a viable energy source in the near future than DaimlerChrysler would not be able to profit from recent heavy investments in the technology and be faced with huge sunk and opportunity costs. The high prices will help to put more focus and energy into viable fuel alternatives which could push the demand for hydrogen powered vehicles. DaimlerChrysler also has headquarters covering all major geographic regions on every continent except Antarctica. DaimlerChrysler. Even specialized vehicles are represented. Daimler Benz was one of Europe's largest car manufacturers. DaimlerChrysler hopes that its research into the new power technology will result in affordable vehicles powered by the alternative fuel source in the neat future. Mercedes. From Dodge and Chryslers cars and trucks covering all price ranges and styles to Mercedes' and Maybach's representation in the luxury market. while Chrysler was a leading American country. DaimlerChrysler has embarked upon a strategy of becoming a world wide leader in the automobile industry. DaimlerChrysler that strong research into these alternative power sources will facilitate their desire to be a technological leader in innovation among other companies in the automobile manufacturing industry. The four pillars include: Global presence. Along with new opportunities come the inevitable threats and opportunity costs associated with any course of action which have the ability to affect DaimlerChrysler. These three markets are the largest in the world and gives DaimlerChrysler a strong global presence. They are also looking in the direction of cleaner. These brand names represent all vehicle types currently offered to consumers. Not all strategies are implemented seamlessly and DaimlerChryser is no exception to this. DaimlerChrysler has also recently inked deals to build manufacturing plants for Mercedes Benz in Beijing. This gives DaimlerChrysler a large presence in two of the largest auto markets in the world. was instrumental in the achievement of many of these pillars. As a leader in hydrogen power DaimlerChrysler is poised to be a large benefactor of any of these scenarios. If they continue in the partnership and hope Mitsubishi can pull out of its slump DaimlerChrysler could still face the consequences of not finding other ways to bolster presence in Asian markets even is Mitsubishi does right the ship. formed by a merger of the American Company Chrysler and the German Daimler Benz in 1998. This Technology has the potential to be the next industry standard for engines and DaimlerChrysler is heavily invested in assuring that if or when it is they will be positioned to offer the best hydrogen engines available. DaimlerChrysler believes that advances in diesel engines are superior to the improvements made by gas/electric hybrids currently offered by many competitors. Maybach. They also choose to purchase a 30 percent stake in the Japanese Mitsubishi Motors as a way to penetrate the Japanese markets. and the Chinese desire for all things American could provide DaimlerChrysler with a golden opportunity.increase its strengths and fix some weaknesses. Dodge. One of DaimlerChrysler's . The decision to focus on hydrogen power research and development could also bode well for DaimlerChrysler if the current prices of oil and gas become a future standard. Jeep is in the top 5. In Chinese surveys of the most sought after American brands in China. and Smart. Broad product range. This is summed up by DaimlerChrysler's four-pillar strategy. After the merger DaimlerChrysler had ownership of several major car manufacturers with certain geographic presence. Strong Brands. DaimlerChrysler currently sells products in over 200 countries and manufacturing plants in 17. which is one of the largest commercial truck producers in the world. Even worse if Mitsubishi continues to flounder DaimlerChrysler may have to cut its losses and find itself even further behind other manufacturers in the race to sure up some of the largest auto markets in the world.

Because of the saving the company acquired in currency shifts. it will allow them to introduce hybrid engines in there own models quicker and not lose precious market share to rivals. it lets the company reach many sectors of the globe in a choice of vehicle for customers. With the yen gaining strength and shifts in other world currency. The brand Toyota is not perceived as many to be prestigious (Amherst). They produce their vehicles and target specific global regions. such as the Carina E for the European segment (Amherst). Many manufacturers have begun licensing their hybrid technologies to other manufacturers. If Daimler were to follow the crowd into hybrid technology they could face a loss of investment in new diesel technologies that may well be a better answer than current hybrid technologies. DaimlerChrysler could also hedge its bets on hydrogen engines by investing more in hybrid technology to provide more immediate returns. This model would combat the Ford . Kaizen meaning continuous improvement (Financial Times). and while this isn't as good as DaimlerChrysler producing there own technology. specifically with one of the Korean builders Daewoo or Hyundai. This brought about the Japanese word. the Lexus brand sold 18. Today. Both companies have been recently seeking a large partner which provides an opportunity for DaimlerChrysler. this is a great market for Toyota to exploit. but a more immediate impact might be needed to ensure DaimlerChrysler doesn't fall behind in the region. The belief that no process could ever be declared perfect. However. DaimlerChrysler is already on the right track with its plans to open manufacturing facilities in China. market with the redesigned passenger trucks and SUV. By only being partners with another Asian firm DaimlerChrysler would not have ultimate control of the partner firm leaving more of a liability than if DaimlerChrysler opted to simply acquire of the company. By having these three distinct brands. up against the European BMW and Mercedes Benz. Toyota. Toyota Pirus. DaimlerChrysler believes that hybrid power is only an interim step until the before mentioned technologies are realized. The opportunities for the Toyota Motor Company seem to be endless.S. Both companies have successful small car divisions. Nevertheless. Toyota has passed the Ford Motor Company to become the world's second largest automaker in the world trailing only GM (Forbes). Lexus.S.1 percent due to import restrictions being dropped in the 1990's (Bloomberg). A more immediate presence could be achieved through another strategic partner. Toyota does have some company traits that are portrayed as a weakness in the industry. Another perceived weakness is that it is in the top five of sales but not in the top five in dividend payouts or stock performance (Yahoo Finance). In certain European countries such as Belgium and Greece. With the price of gasoline and oil ever rising. Toyota has also rounded out it's product line to suit the U. Japan caught up the U. such as diesel. and that therefore there was always room for improvement was introduced by Toyota Sakichi (Financial Times). The opening up of imports in the European market is a great opportunity for Toyota because that enables them to put their luxury line of automobiles Lexus. while great.S.720 BMW's. at the 2003 New York Auto Show and hit the dealerships in the fall of 2004 (Toyota). While they do have a strategic partnership with Mitsubishi motors it is apparent that Mitsubishi isn't fulfilling the high expectations DaimlerChrysler expected. The company is also being pushed in the right direction for opportunity with the strengthening of the Japanese Yen (Bloomberg). This may put up a red flag to investors around the globe that Toyota is not paying dividends as frequent or as efficiently as they should to their shareholder of the company. To fill this gap DaimlerChrysler could purchase plans for hybrid engines to hedge their bets of the upcoming market for more efficient fuels. By using the Kaizen theory of continuous improvement. may hold greater promise than hybrids. the Prius (Business week).500 which is five times more then the company target of 3000 (MSNBC). most notably their focus on hydrogen and a belief that other fuels. if DaimlerChrysler's assertions about the future of hydrogen power are incorrect they could face large consequences of not embracing hybrid engines. In September of 2003. Toyota has traditionally also been the leader in Total Quality Management or TQM. and more importantly they come with distribution centers throughout the Asian market. By taking on another acquisition or strategic partner DaimlerChrysler could face the same problems it is currently experiencing with Mitsubishi. Toyota Motor Corporation SWOT Analysis The Toyota Motor Corporation was incorporated in 1937 and has many strengths being one of the industry leaders in the automotive industry. Toyota is considering the idea of introducing a beefy three-quarter-ton pickup truck into the U. Toyota has doubled its market share in Europe in the past four years to 5. Toyota has three major brands underneath the company umbrella. The addition of a new Asian partner to the DaimlerChrysler stable can prove to be a great advantage through the immediate presence DaimlerChrysler could gain presence in the underrepresented Asian market. Toyota has also introduced it's newest hybrid power car. the operating profits dropped during the April-June quarter by fifteen percent or seventy billion yen (Bloomberg). and Scion. which are a need for DaimlerChrysler. but it could also turn out to be a drawback. DaimlerChrysler's resistance to go ahead with full scale implementation of hybrid engines has come from a number of sources. In Europe. orders for the new and improved Pirus totaled 17. but they have also hit the market hard with eco-crazed society with the introduction of the second generation hybrid car. diesels make up 90 percent of BMW sales in part to the tax subsidies the consumer receives (Bloomberg). auto makers during the 1980's (Financial Times). The reason for this is the Lexus brand lacks the diesel V-8 engine (Bloomberg). DaimlerChrysler believes that more efficient Diesel technology is the better near-term solution t increase fuel economy. Market (Big News).206 vehicles last year compared with 509.biggest current problems is its weak market penetration in Asia. are still many years away and the use of hybrid engines and technology is growing exponentially in the present. Toyota has extra money on hand to use possibly in R&D to improve on their vehicles or in several other areas causing great opportunities for the company. This would be an advantage for DaimlerChrysler because the promises of hydrogen power.

and that sums up what Toyota is all about as a company (Business week). a strong business. market is the eco-friendly vehicle that uses less gas and even more use of electronic power (MSNBC). The advantage of producing automobiles customized to a certain market is a good plan to keep a competitive advantage over the competitors in the same geographic region. Toyota has introduced the Prius hybrid vehicle. If Toyota will decide to enter the heavy-duty truck market now it could be very profitable with construction. Ford cut $1 billion in costs as a result of work suggestions and using standardized parts for different Ford models. The Americas segment includes primarily the sale of Ford. Technology increases in cars today is a major driving force in the automobile industry. Bill Ford has a simple strategy. "Our vision for the future is simple: We want to build great products. A major threat to Toyota is the Hyundai motor company. and a better world. Toyota also lives by the word Kaizen which translate into continuous improvement (Financial Times). Lincoln and Mercury brand vehicles and related service parts in North America and Ford-brand vehicles and related service parts in South America. Americas and International. and Toyota fails to keep improving. If this happens. The Automotive business consists of the design. Over the past year. "To become the world's leading consumer company for automotive products and services" (Ford. Ford's chairman and CEO. As a result of using standardized parts. Ford was able to decrease the number of inventory parts. In 2003. saving Ford money (Stevenson 548). This meant the assembly plant would be shut down less for out of stock parts. manufacture. Toyota could have a huge failure with all of the R&D and advertisement they have put into their new hybrid vehicle. The International segment includes the sale of Ford-brand vehicles and related service parts outside of North and South America and the sale of Premier Automotive Group brand vehicles and related service parts throughout the world" (Yahoo Finance). These are the recommendations that the Toyota Motor Company needs to take into consideration to keep their company moving in the right direction globally. they will quickly switch and try the other products on the market. There combination of speed and flexibility is world class with the 30 plants they have worldwide with some of them able to produce up to eight models of on the same line (Business week). Hyundai usually has thirty more horsepower in their vehicles. . The Toyota Motor Company has a slogan that is plastered across one of its assembly plant. On average. it appears that having a marketable hybrid car in their line up of automobiles will be a good plan for Toyota in the future.S.F-250 and the heavy-duty Chevy Silverado and these two pickups typically sell for more than $30. which decreased the chance of inventory parts not in stock. they are still losing ground to BMW in sedan sales and in SUV sales (Business week). In the U. The advantage that Toyota would have by being the leader in the hybrid car sector is unknown right now. The latest trend in the U. In the luxury line of Lexus. the company chopped out 2. they could quickly lose market share in sectors they are involved in. That slogan translates to "Good thinking means good products". market. Toyota has also launched a joint program with it's suppliers to drastically cut the number of steps it needs to make cars and car parts. market. Nobody knows for a certain fact if the "green trend" will be a large factor in the future. plants Indonesia to Argentina will be designed to make more customized cars that fit the demand in the local markets and Toyota believes that by doing this at their plants the can save 1 billion dollars normally needed to build a new factory (Business week).S. booming all over the United States. If the rest of the industry begins to implement this also. They are also putting the finishing touches on a plan to create a more flexible manufacturing system. In this new plan. this could prove to become a disadvantage for the company. market and others in better technology increases before Toyota's Pirus begins to turn profits for the company. Ford Motor Company SWOT Analysis "Ford Motor Company is a global company with two core businesses: Automotive and Financial Services. development. Toyota. this won't become much of a threat. to be as profitable in the future as they are right now needs to keep their focus on the hybrid sector when selling in the U.S. trucks and service parts. where the use of heavy-duty trucks are needed. and if Toyota can't keep up with its other competitors. In 1997. yoi shina (Business week).com). but if the Pirus does not fit consumer's needs in the hybrid sector. If the Toyota Company can gain market share before the other big three release their hybrid. Threats to the Toyota Motor Company are an everyday occurrence." Ford's vision is. Toyota introduced TQM and Kaizen to the world with the help of Edwards Demming to take the world by surprise and focus on quality and improvement constantly instead of just the bottom line and this focus has helped the Japanese company to become one of the leaders in the auto manufacturing industry (Financial Times).000 (Big News). and costs around 3000 dollars less than a comparably segmented Toyota vehicle (Amherst). the Company organized its Automotive business as two primary segments. Yoi kangae. but Honda also is selling a hybrid car right now and Ford. Toyota also has an advantage over their customers today using the TQM model of operations. sale and service of cars.S. GM and DaimlerChrlsyer have all announced plans for a soon release of their hybrid vehicles (MSNBC). Ford has been focusing on cutting costs to increase margins more than its competitors.6 billion dollars out of its 113 billion dollar manufacturing costs without any plant closure of layoffs (Business week). The hybrid car market could be a failure in the U.

the Taurus was viewed as the best-in-class car. and the long wheelbase Jaguar XJ" (Company News). "Behind the earnings hoopla. Ford counters with saying that they must sell vehicles before the financing side can make the money.9 billion. whatever the immediate impact on profits. The Taurus is one example of this tactic. robots. "The immediate benefit is going to be efficiencies in cost and operations related to moves. a fragile commodity. and software-driven systems that monitor maintenance for tooling. Its first quarter numbers were twice what was expected. expected to be operational by summer and running at full capacity by year's end. "Ford Motor Co's state-of-the-art F-150 truck-assembly facility. Costs need to be reasonable for the appropriate class of vehicles. Ford hopes that the release of the many different new vehicles will revitalize Ford." Ford's management says that "Rather than relying on windfall profits from a couple of hotselling models that might cool off later. adds and changes" (Pappalardo 14). Ford reported earning of $1. Ford paid SBC $100 million to install and manage a network of 50. part of its synchronous materialreplenishment trigger system. conveyers. it boosted revenues by targeting incentives and increasing the mix of high-profit vehicles. This viewpoint is an unbelievable stance from the CEO of an automobile manufacturer. Ford has been an innovator in the auto industry when it comes to technology.the world's only hybrid SUV. In Detroit that makes him a virtual heretic and threatens to turn accepted industry practice on its head. the Volvo S40 and V50.Ford has used reverse engineering in the development of their products. And prioritizing profits might also threaten brand loyalty. or improve on the fundamentals of our business. such as sports utility vehicles (SUVs) with four-wheel-drive packages" (Taylor 10). This is a business where the fixed costs are so enormous that bosses like DaimlerChrysler's Juergen Schrempp have staked their company's future on selling more cars.000 VoIP phones. Bill Ford said. with assistance from about 58 antennas around the compound" (InformationWeek 26). "Ford Motor Company has aggressively adopted videoconferencing and computer-assisted design and manufacturing technologies. It is uncharacteristically audacious and sweet in its apparent simplicity. Some recommendations are needed for Ford to maximize profits. The financial numbers will turn out decent for the year due to the money made on the financing side. Ford GT. This was "twice as much as the company had told Wall Street to expect and far more than historical rival General Motors. and the redesigned F-Series Super Duty. "self-adjusting platforms at each bay station. Ford is hoping that VoIP phones will become a long term cost saver and help the company save their profit margins. and build and test prototypes via computer simulations" (Thompson and Strickland 157). This wireless technology will allow Ford to be more effective and efficient in all operations of manufacturing vehicles at this facility. It's also Ford's first completely wireless assembly factory. is a body shop and final staging area where trucks are assembled and prepped before being shipped to dealers. This tactic allowed Ford to "leapfrog" ahead of the competition in the family sedan category (Stevenson 130). and we'll continue the biggest product roll-out in our company's history" (Company News). something even more interesting is beginning to emerge: Bill Ford's strategy for the company. Ford needs to capitalize on all the new vehicles coming on to the market. and other machines. the Land Rover LR3." The factory utilizes a flexible body shop. Pushing fewer cars out of the factory also means accepting lower market share. We're not going to let up on our efforts to raise our quality. Ford Five Hundred." These innovations have led Ford to staying successful and efficient in the auto industry. Ford has recently added Voice over IP phones to help control costs. Ford then designed the same parts as well or even better than the competitions. the redesigned Ford Focus in Europe and Asia. blasphemous to some ears. Bill Ford wants to make money by selling fewer cars. The only way Ford can make money from theses new vehicles is to sell a lot of them. but the rest of the quarters have been lagging. At the same time. Ford wants to make more money selling fewer cars. create the actual designs. Another technology innovation is the "use an online computer network to share ideas. Customers who shop elsewhere because Ford's prices are a few dollars higher could be lost forever" (Taylor 10). Ford examined the close competitors of the Taurus to see which parts on each car were the best of the group. automated-materials-replenishment system. integrate the designs for the various parts and components. Bill Ford is taking a very new outlook on the automobile industry.3 billion. . The wireless infrastructure Ford is deploying for parts replenishment and vehicle tracking comes from WhereNet Corp Inventory replenishment is driven by Ford's Auto Call. Ford Freestyle. lower our costs. The first quarter of 2004 was a great quarter for Ford Motor Company. which made only $ 1. the company showed a mastery of the myriad small but important details that bolster the bottom line. cut product expenditures and slashed warranty costs. It reduced overheads. Aggressive advertising campaigns might entice consumers to go to a Ford dealer and look at the new products. Ford has been introducing new products to the market which include the all-new Ford Mustang. Some critics say that the financing side of Ford is what makes the money. the all-new Ford Escape Hybrid . particularly since Ford has been losing share since 1995. Ford has been struggling to maintain consistent sales numbers. the all-new Mercury Montego and Mercury Mariner. "We've made solid progress in the last two and a half years and we're building momentum. Since the Taurus had the best parts when compared with its competitors. While economies of scale always determined if an automobile was successful or not.

Their prices are higher for non-luxury vehicles than comparable modes by other manufactures. This practice has led to over one hundred manufacturing . Honda's success has not gone unnoticed by its competitors. Extensive testing is needed before a new vehicle is launched onto the market. the company will lose lots of money. Ford needs to stop using reverse engineering on the development of their automobiles. This competitive nature carries over to automobiles. However there are weaknesses. The publicity of the new innovation will help sales. and price. Honda is the only other manufacturer outside of Mitsubishi to branch out into many other areas outside of automobiles. The cutting edge Asimo robot and a successful motor sports programs provide innovations that are passed to consumers as well as press recognition. Savings in the long run might be large. While they have made progress in this area. and producing a new vehicle. This explains why brand new vehicle sales are very large immediately after the release date. Stealing its competitor's ideas does not make Ford first to the market with a new concept. They do not have a strong offering in a truck line. While once upon a time Honda cut the low emissions trail. They would lose the initial investment to switch and create new costs to switch back to the old way of doing something. In this way manufacture is increased in areas where sales increase. Honda has a reputation for producing high quality products from cars to motorcycles to lawn mowers. In order to make a profit on the specific car or truck. sales might lag causing Ford not to get much return on its investment. If that number of sales is not met. there exist opportunities. Ford needs to find ways to cut costs while maintaining or improving efficiency. and the infrastructure does not exist. the technology is still overpriced for the consumer. Millions and even billions of dollars are put into designing. If reverse engineering is used. If Ford can meet these three needs better than its competitors can. Newer efficient ways of running the company can be found. Costs can usually be saved in the long run. The down side of this is the cost to create the new vehicle. Honda's strategy is to create value through expanded sales via innovation in research and manufacturing. then Ford is behind its competitors. Another opportunity would be to continue progressing low emission vehicles and alternative power sources. competitors will beat you with last year's technology. To be viewed as an innovator. Even for a broadly diversified company like Honda. the car or truck was not a success.Along with selling all the new vehicles. and cheap dependable transportation would be a hot seller. Originally know for motorcycles. There are many advantages for Ford to be an innovator in its industry. Honda Motor Company SWOT Analysis Honda motor company is not your average Japanese car manufacturer. Humans have a natural tendency to be competitive. They were a pioneer in engineering low emissions internal combustion and hybrid technology. Their vehicles also have a reputation for being underpowered or pokey econo-boxes. Ford must continue to be the pacesetter for anything new related to the auto manufacturer sector. Their automobiles are reliable and generally fuel efficient. An offering in a pickup type truck would be profitable. Like racing. Their research has afforded them competitiveness in innovative products. but the costs to switch from the old way of doing something to a new way are usually a sizeable amount. One person will usually want a better car or truck than his or her neighbor. Ford must stay on the cutting edge for developing new ideas. performance. if you don't come up with something new this year. Ford must make sure that the new vehicles are what the consumer wants. Releasing several new cars and trucks will hopefully entice the masses to purchase a new automobile. The major disadvantage of innovation is the initial cost of the innovation. testing. There are many strengths to Honda. Ford is playing this game. This is seen with the first wireless truck manufacturer facility and using VoIP phones. Ford appears that it wants to be seen as an innovator. These are large markets. now they are no longer at the vanguard. the lessons learned on the track transfer to better performance and engineering of future consumer vehicles. These are types of vehicles have among the highest profit margins. If the innovation doesn't work. even if priced under competitors. Not that other companies are taking Honda's technology. In fact they are the largest manufacturer of motorcycles in the world. If a new car or truck is released on the market. but for others to catch up is for Honda to fall behind. developing. Honda has won many awards for initial quality and customer satisfaction. Another area of opportunity would be developing nations like china and India. The consumer won't buy the car if he or she doesn't like its appearance. An advantage for releasing new products by Ford would be the potential profit making opportunity. the neighbor with the new car or truck that very few others have will have bragging rights. While these race cars and motorcycles are much different than production vehicles. Ford would not make a profit on it and would end up losing money on the project. If Ford has not done enough testing and surveys of potential customers. Hondas products are fairly bland and inoffensive in terms of styling. thousands of that type of vehicle must be sold in order to cover the development costs. Honda won the MotoGP manufacturers title and came in second in the F1 constructors' championship. Instead of having one large manufacturing plant Honda uses an idea of "manufacturing products where they are sold". Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominant automobile manufactures in the world. Ford will gain market share. People want what others don't have.

a process they call "globalization". Honda needs to come out with a truck. Ford strongly led the group in days to sell inventory in the high teens. they need to put something on the market soon to recapture their image as the green leader. GM and Ford lead total debt to total assets by a wide margin. it was not used in comparison because the methods of computation would have been various as well. However caution should be taken. and with all 3 companies with marginal change in this area. other competitors had numbers around the forties. The two Japanese companies also have very strong return on assets compared to domestics. The first area of comparison is liquidity. but not by a decisive margin. So while Ford had the lowest days to sell inventory. doubling this ratio over 5 years. So GM and Ford use much more debt. which evidently is in the making (the "Ridgeline" coming spring 2005) and progress with efficient low emissions vehicles. And lastly DCX led net working capital to total assets. HMC pulled better turnovers to be the winning asset manager. the hybrid is well just uninspiring. Toyota holds a whopping fourteen percent. Even though the Accord hybrid has better performance. It also wouldn't hurt if they were to come up with some sort of distinctive styling.plants in over thirty countries. then they just rolled craps. while the big three had interest coverage between one and one and a half. After the closest rival TM. Historical data for Ford and GM was not available as well as two years of data for Daimler Chrysler. The third area is debt management. and for the most part their ratios changed in a scale larger than the group (caveat n=3). Research should be continued because that has provided the innovative and competitive products. This appears to be the right move and is in line with Honda's production in the location of sales. The second area of comparison is asset management. Honda led fixed asset turnover. this is the markets reward to Toyota for producing a superior product. The expansion into China an India will provide increased sales and spread the image of Honda. while HMC kept their turnover higher than competitors. DCX had the highest current ratios and managed to raise them by over thirty percent over 5 years. They assume more business risk. Regaining the lead of low emissions is a risky proposition. However even higher performance than the regular Accord. After further review Honda's extensive web site. None of the companies manage an improvement in total asset turnover with GM doing the worst over all and in change. it still looks the same to the guy on the street. They also are guided by a commitment to the future. Toyota had the highest cash to current liabilities. The last and arguable most important area of comparison is profitability. Return on investment has slid for all except GM. While data for the year 2004 is available from various sources. so those will not be used. Price to earnings run around 15 with the exception of GM at 10 and Toyota at 17. But to be the leader. This ideal is reflected in several ways. Poor GM had increased its days to sell inventory by nearly eighty percent over five years to seventy one days while Honda had the only improvement decreasing by nearly ten percent. China expansion includes a new plan that will quadruple production by 2006. Meanwhile in India production has started on a motorcycle that will cost less than two thousand US dollars. debt management. and profitability were compared. These actions should put Honda in a position for much more sales. thus rendering the comparison meaningless. Ratios in liquidity. . asset management. they need to put something out to be recognized. while the big three barely have any margin. while Toyota was most improved. Generally DCX had the most liquidity of the three firms that were compared in this area. Financial Comparisons of Major Competitors Our competitors' financial ratios from three areas were compared. TM decreased by almost twenty percent. Also as mentioned earlier. Toyota and Honda had interest coverage. The new hybrid Accord looks to fill that gap on paper. DCX made negative progress in this area. and Honda's diversification into areas other than automobiles should also be continued as this has been historically and asset by providing synergies in technology and distribution as well as name recognition. If Honda can put a affordable transportation in the hands of the masses then great. Data for the years 1999 through 2003 was obtained from research insight. This could be good or bad. with the others in the middle. As far as new low emissions vehicles. with all facing declines since 1999. Likewise DCX also improved their quick ratios to lead the comparison group. Low emissions vehicles are one example. a car your parents would drive. so the whole group can be compared in this area. Yes is quicker and gets better mileage and has more power. All companies had data for asset management ratios. If Honda goes fuel cell and every one else goes electric. but if instead of affordable they opt for cheap. the two Japanese companies had almost doubled their already high interest coverage to 56 for Honda and 43 for Toyota. anther are manufacturing plants that are focused on environmental friendliness as well as efficiency and quality. it appears that they are expanding into India and China. who nearly doubles the Japanese returns. They also lead long term debt to total capital decisively by a wide margin. but it looks the same. then the two largest concentrations of people on the planet will know Honda as crap. Surprisingly GM has double the ROE of Toyota or Honda. a simplified inexpensive transportation is it motorcycle or car would sell like hotcakes in China and India. while the Japanese companies could in theory take more debt to exploit opportunities. Data was incomplete for price to book comparisons.

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