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    4 views12 pages

    World Auto Case 2009

    Uploaded by

    Sam Fletcher
    .

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    INDUSTRY IN 2009 INTRODUCTION As the first decade of the 21st century drew to a close, the global automobile industry was facing unpree edented economic challenges. A deep recession had driven automobile sales down to levels not seen since the 1960s, Many long-established companies, ineluding, General Motors (GM), Chrysler, and Toyota, soughi government aid to help them survive the downturn Ultimately, Chrysler had to seek Chapter 11 bank: ruptey protection. General Motors, also went down that road. In contrast, Toyota, with $19 billion in eash ton its balance sheet, looked well positioned to survive the downcur in good shape Ac the same time, two seismic shifts were taking place in the structure of global demand. First, while lemand imploded in many developed nations during 2008, growth continued in some developed nations, particularly China, which experts predicted could jagest automobile market some time between 2016 and 2020, Reflecting this, several automobil using their strong home markets as springhoards reach, These included Tata Morors of India, which purchased Jaguar and Land Rover from Ford in 2008, and China's Geely, whicl in mid-2009, was reportedly bidding for General Moror’s Saab unit and Ford's Volvo subsidiary, both of which were based in Sweden.! In addition, high fuel costs were divi from large vehicles, such as the sports uty (SUVS) panies from developing nations 0 mpanie developing nations were to expand their vehicles so beloved by Americans, toward smaller more fuel-efficient cars, including hybrids such as the Ford Focus and Toyota Prins, il. the Unive either effective or inetective handling fan administrative set Hil 2000 226 THE GLOBAL AUTOMOBILE Some SO years ayo, renowned management author Peter Drucker called the automobile industry the “industry of industries.” In many respeets, his charac terization is still true today, The industry makes over nillions tof people in factories scattered around the globe and accounts for about 10% of the gruss domesti product in many developed countries. The industry consumes nearly half che world’s output of rubber 25% of its glass, and 15% of its steel Its produets fe responsible for almost half of the world’s oil consumption and are a major source of rising carbon oxide levels in the atmosphere, the greenhouse gas implicated in global warming, Moc ies, with their attendant suburban sprawl, have been designed around the automobile. The automobile has shaped ‘our landscape, changed our atmosp profound influ lobal economy, It indeed still the industry of induscries—and today the wee on the industry of industries is going through wrenching, changes, The emergence of the modern industry dates back to 1913 and Henry Ford’ first implementation. of the production rechnology—the continuously, moving assembly line—that would revolutionize so much of industrial capitalism over the ext few decades. Ford quickly became the master of mass production, churning our chousands of black Model T Fords from his Highland Park plaot in Mshiga ca che con for the emet Mass production dramatically tov nds of sag conceal sect hat Ae Soa the CEO oF Gene ee , who in a mid-1920s realized that Not he mi ed ha Moe os the ny was See He ering thew “2 cat For Oe purse and Cinder Sloan, GML segmented the mar fed range of models £0 se ers hv ong so the compar seized mar conteadkrship from Ford aed has noe relinquished INES y605, General Morors, Far and ter dominated the United States marie then’ Carte che work!’ Largest. GM at one POM made by fr Fan 60% oF al automobile sales the Unired States, Ui ntedfor morethan 90% of sales, Mareen the nationals, with! *j wollectively the three companies

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