Automobile Industry and Economic Indicators Presented by: Stacy Hunt, Nadege Lewis, Jessica Rodriguez, Lina Rodriguez, Ed Simone, Esther Ventura Automobile Industry

Agenda Esther – Industry and the GDP Jessica – Inflation Rates Lina – Market Volume Stacy – Market Value Ed – Unemployment Rate Nadege – Market Segmentation

Brief History 1885: Damier and Benz : Charles E. & J. Frank Duryea : Europe After 1900: United States 1901: Texas’ oil fields/Oldsmobile 1913: Henry Ford

Gross Domestic Product (GDP) Millions of Vehicles Year

Inflation Rates Inflation Jumps, Car Prices Fall The core inflation rate edged up by 0.1 in July. This price category was helped in July by a 1% drop in new car prices, the biggest decline since January Retail sales rose by 1.8%, the best showing in three months Auto sales by up 6.7% Excluding autos, retail sales were up a smaller 0.3% in July.

Market Volume YearUnits Million% Growth % % % % CAGR, :2.6% Increased from

Market Value What is the current state of the automobile industry’s market value? To what factors do we contribute their rise or fall to? Will we be continuing on this track in the future or is there evidence to suspect a change?

The United States new cars market grew by 1.8% in 2004 to reach a value of $202 billion. Market Value

The global automobiles industry grew by 5.4% in 2005 to reach a value of $1,161.2 billion. Market Value

Research and Development Cleaner, safer, and more fuel efficient –E85, 85% Ethanol –Hybrid or Alternate Fuel Vehicles –Diesel and Biodiesel Consumer Acceptance of Higher Fuel Costs

Unemployment Rate The percentage of the total labor force that is unemployed but actively seeking employment and willing to work From 1948 to 2004, the monthly U.S. unemployment rate has ranged between about 2.5% to 10.8%, averaging 5.6%. Considered a lagging indicator, confirming but not foreshadowing long- term trends. The number of unemployed persons was essentially unchanged for the month of June. Unemployment rate holding steady at 4.6%

International Statistics Trade is important indicator of state of automotive industry U.S. accounts for 25.2% of international new car market American car brands accounted for 69% in 1986 & 35% of market share in 2005 The only increase in American car sales came from large passenger vehicles

%30.3%75.0% %20.7%55.6% %10.0%54.3% %6.5%60.7% Year. Automotive Deficit Share of U.S. World Deficit Share of total U.S Japan Deficit U.S. Automotive Trade Deficit

Conclusion Indicators provide a glimpse into the state of the automotive industry Economic standings of consumers bears a strong relationship to automobile manufacturing and sales. Global competition greatly affects vehicle production & sales in the U.S.

Reference Bureau of Labor Statistics Datamonitor Trade.gov