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

2. Lead Competitors
DaimlerChrysler AG
Ford Motor Corporation
Honda Motors
Toyota

3. Daimler Chrysler AG
Reference: Yahoo Finance and

4. Daimler Chrysler AG Company History:
Company founders- Gottlieb Daimler and Karl Benz
Mercedes automobiles were fitted with Daimler engines and open the door to the world’s first car race in 1894
Original cars had low center of gravity, pressed-steel frame, light, high-performance engine and honeycomb radiator
In 1988, Daimler-Benz AG and Chrysler Corporation – merged to form Daimler Chrysler AG
Reference: Yahoo Finance and

5. Daimler Chrysler AG Company Today:
Develops, manufactures and distributes passenger cars, light trucks and commercial vehicles
Operates in four segments: Mercedes Car Group, Chrysler Group, Commercial vehicles and Services
Total Revenue EUR billion (USD billion) in 2004
Total employees: 384,723
Headquarters: EUR-Stuttgart,Germany USA- Auburn Hills, MI
Reference: Yahoo Finance and

6. Daimler Chrysler AG Product Lines Dodge Maybach Smart Mercedes-Benz
Commercial brands including-
Freightliner
Western Star
Maybach
Mercedes-Benz
Chrysler
Jeep
Reference: Yahoo Finance and

7. Daimler Chrysler AG Financial Overview As of 10/28/05:
Stock (NYSE:DCX): $49.52
Market Capacity: $50,155 Millions
Sales: $176,471 Millions
Debt/Equity (2004): N/A; S&P: 1.3
Financial Leverage (2004): 5.4; S&P: 5.3
Reference:

8. Daimler Chrysler AG Financial Overview
Reference: Yahoo Finance and

9. Daimler Chrysler S.W.O.T Analysis Strengths-
Clear, four-pillar strategy: global presence, superior products, leading brands, and innovation/technology leadership
Weaknesses-
Increased market penetration and lower demand. Speed and efficiency of R&D efforts
Opportunities-
Signs of economic recovery in Japan, continued energy research
Threats-
Fuel resources and regulation, weaker economic growth and demand for automobiles worldwide, rising crude oil prices, higher interest rates
Reference: Yahoo Finance and

10. Daimler Chrysler AG Innovation Energy for the Future
DaimlerChrysler Commercial Buses North America has received a contract for 500 Orion VII hybrid-electric buses from New York City transport services
Fuel efficiency and resource research
Accident-Free Driving
Distronic system is equipped with a 77-GHz radar sensor that measures the distance to the vehicle in front, up to a separation of 150 meters
Automotive Visions & Further Innovations
Reference: Yahoo Finance and

11. Daimler Chrysler AG Headlines
Significant increase in Daimler Chrysler’s Third Quarter Operating Profit to EUR 1.8 billion (+38%)
Daimler Chrysler Receives Largest Hybrid Electric Bus Order to Date
Mercedes Car Group Sold 117,900 cars in September 2005
Chrysler Group Achieves 18th Consecutive Month of Sales Gains on 4 Percent Rise in Sales
Reference: and

12. Ford Motor Company

13. Ford Motor Company Company History
Founded on June 16, 1903
In 1896, Henry Ford invented the Quadricycle. It was the first "horseless carriage" that he actually built
Perhaps Ford Motor Company's single greatest contribution to automotive manufacturing was the moving assembly line. First implemented at the Highland Park plant (in Michigan, US) in 1913
Went public and on Feb. 24, 1956, had about 350,000 new stockholders
Reference:

14. Ford Motor Company Company Today
Third largest auto manufacturer, behind GM and Toyota
Designs, manufacturers, and finances passenger cars and light trucks
Total Revenue $170 billion
86% of total revenue from automobile sales
Financial-services arm contributes the remaining 14% revenue
Headquarters: Dearborn, MI
Employees: 327,531
Reference:

15. Ford Motor Company Product Lines Ford Volvo Lincoln Jaguar Mercury
Mazda
Volvo
Jaguar
Land Rover
Aston Martin
Reference:

16. Ford Motor Company S.W.O.T analysis
Strengths:
Ford F-150 top selling vehicle in U.S. Ford's primary strength is the production of light duty trucks and SUVs. As an example, the "F- Series" of truck will had a unit volume of over 750,000 for 2004
Weaknesses:
The global over capacity of the entire industry
Opportunities:
Increase in overseas productions, sales. The product line is expanding, the corporate culture is firmly and centered on the core business. The distribution channel is one of the best in the business with Ford dealerships in over 70 countries
Threats:
Domestic and Foreign competition
Reference:

17. Ford Motor Company Financial Overview
As of 10/28/05:
Stock (NYSE:F): $8.02
Market Capacity: $14,861 Millions
Sales: $173,740 Millions
Debt/Equity (2004): 10.8; S&P: 1.3
Financial Leverage (2004): 18.2; S&P: 5.3
Reference:

18. Ford Motor Company Financial Overview
Reference:

19. Ford Motor Company Financial Overview
Reference:

20. Ford Motor Company Headlines
The "Recycling Leadership Award" was given to Ford Motor Company from the National Recycling Coalition
Diversity Inc.’s Top 50 Company for Diversity
Working Mother’s Top 100 Place to Work
Volvo Unveils Two Hot New Concepts At The 2005 SEMA Show
Ford Delivers Fleet of Hydrogen Focus Fuel Cell Vehicles to Southeast Michigan
Latina Style’s Top 50 Company for Hispanic Women to Work
Reference:

21. Honda Motor Corporation

22. Honda Motor Corporation
Company History:
Company founder- Soichiro Honda
Honda Motor Corp. Ltd., was founded in 1948
In 1959, the American Honda Motor Company is established
"We have now established ourselves on solid ground domestically," said Senior Managing Director Takeo Fujisawa. "Eventually, we'll have to aim to be number one worldwide. So, with that in mind, why don't you go check out the overseas market?"
In 1963, Honda's first sports car (S500) and light truck (T360) released
Reference: Yahoo Finance and

23. Honda Motor Corporation
Company Today:
Develops, produces and manufactures motor products ranging from small general-purpose engines to specialty sports cars
Global Operations
Honda Japan, Honda South America, Honda Asia/Oceania, Honda North/Central America, Honda Europe/Middle East/Africa, Honda China.
Total Revenue JPY133.7 billion (USD 1,181 million) at end of Q2 2005
Total employees: 137,827
Headquarters: Tokyo, Japan
Reference: Yahoo Finance and

24. Honda Motor Corporation
Product Lines
Honda
Acura
Honda Motorcycles
Honda Power Equipment
Honda Marine
Honda Engines
Reference: Yahoo Finance and

25. Honda Motor Corporation
Financial Overview
As of 10/28/05:
Stock (NYSE:HMC): $27.33
Market Capacity: $52,549 Millions
Sales: $80,544 Millions
Debt/Equity (2004):0.5 ; S&P: 1.3
Financial Leverage (2004): 2.8; S&P: 5.3
Reference:

26. Honda Motor Corporation
Financial Overview
Reference: Yahoo Finance and

27. Honda Motor Corporation
S.W.O.T. Analysis
Strengths-
World’s leader in motorcycle sales, continuous advancement of the Civic, increased unit sales in Europe and continental Asia, breadth and depth of product lines
Weaknesses-
Increased market penetration and lower demand. Speed and efficiency of R&D efforts
Opportunities-
Signs of economic recovery in Japan, healthy motor sport market in US, market introduction of “all-new” and “next generation” models
Threats-
Fuel resources and regulation, weaker economic growth and demand for automobiles worldwide, rising crude oil prices, higher interest rates, currency conversion rates
Reference: Yahoo Finance and

28. Honda Motor Corporation
Headlines
Honda Sets All-Time Records for Overseas and Worldwide Production for the First Half of Fiscal Year
High strength in hallmark for new Accords.
Nearly 50% of each uni-body for Honda Motor Co’s Accord sedan and coupe models is made of high strength steel
Honda, VW spots put safety first: new ads to break mid-October leave behind sterile crash tests
Honda Strengthens R&D Capability in Asia Oceania Region By Establishing Automobile R&D Center in Thailand
Reference: and

29. Toyota

30. Toyota Company History
First established in 1937 as a spin-off from Toyoda Automatic Loom Works, one of the world's leading manufacturers of weaving machinery
In 1950 the company experienced its one and only strike. Labor and management emerged from this stoppage firmly committed to the principles of mutual trust and dependence, and that corporate philosophy still guides their growth today
Toyota launched its first small car (SA Model) in Production of vehicles outside Japan began in 1959 at a small plant in Brazil, and continued with a growing network of overseas plants
Reference:

31. Toyota
Company Today
Toyota is the world's third largest manufacturer of automobiles in unit sales and in net sales. It is by far the largest Japanese automotive manufacturer, producing more than 5.5 million vehicles per year, equivalent to one every six seconds
Toyota Motor Corporation is one of the world‘s leading automakers, offering a full range of models, from minivehicles to large trucks
Toyota employs 264,000 people worldwide (on a consolidated basis), and markets vehicles in more than 140 countries
Head office in Toyota City, Aichi
Reference:

32. Toyota Product Lines Toyota Hino Lexus Daihatsu
Toyota F1 and Motorsports
Hino
Daihatsu
Diversified operations include telecommunications, prefabricated housing and leisure boats
Reference:

33. Toyota S.W.O.T analysis Strengths:
Small cars in times of high gas prices, low cost production, High quality, repeat buyers, Lexus most popular luxury brand, Toyota Camry No. 1 selling car in U.S.
Weaknesses:
World market is in over supply of cars. Car market may slow down production. The company needs to keep producing cars in order to retain its operational efficiency
Reference:

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

35. Toyota Financial Overview
As of 10/28/05:
Stock (NYSE:TM): $91.25
Market Capacity: $149,106 Millions
Sales: $172,740 Millions
Debt/Equity (2004): 0.5; S&P: 1.4
Financial Leverage (2004): 2.7; S&P: 5.3
Reference:

36. Toyota Financial Overview
Reference: annual report

37. Toyota
Headlines
Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) will produce the hybrid version of the Camry - the first Toyota hybrid vehicle to be made in North America - beginning in the second half of 2006, with an expected monthly production target of 4,000 units
Toyota's Fourth Environmental Action Plan, announced in May, calls for the company to become "a leader and driving force in global regeneration by implementing the most advanced environmental technologies"
Reference:

38. GM vs. Competition

39. Chart Comparison:
Reference:

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

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

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

43. Stock Comparison:
Reference:

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

45. GM vs. Competitors- Overall Conclusions
GM is not as innovative as other competitors.
GM was not the leader of hybrid vehicle which is in high demand right now
Many new vehicle offered by GM do not appeal to young buyers
GM offers many rebates / sales incentives to boost their unit sales
GM and Ford have decreasing total return % trend performance compared to Toyota, Honda, and Chrysler who have increasing return even though GM is the leader at its sales.
GM is one of industry’s worst returns on assets

46. Suggestions for GM:
Redesign their product line to keep leadership in the worldwide automobile business by interacting directly with the real world instead of focusing on just automobile shows or high-tech design (explore other electronic shows, car dealerships, etc).
Plan to introduce an alternate fuel vehicle or hybrid to compete with other manufacturers and attract environmentally-conscience consumers, especially since GM’s majority of sales are in trucks and SUV’s, which tend to use more gasoline.
Continue to work on drastically reducing health care and pension costs, starting with decreasing their number of employees.
Bring back employee discount program to Hummer, Cadillac, and Saab to boost profits made from GM’s financing division. In the meantime, continue to strongly market these products.

47. References
Company financial information. Retrieved October 27, 2005, from
Daimler Chrysler operating profit by segment and company history .Retrieved October 31, 2005, from
Daimler Chrysler Headlines. Retrieved November 1, 2005, from and
Economist, The. The global car industry, Extinction of the Predator. September 8, 2005.Retrieved November 7, 2005.
Financial information. Retrieved October___10/28/05__, from
Ford Heritage. Retrieved October 25, 2005 from,
Ford Good Works. Retrieved October 25, 2005 from,

48. References
Ford financial global overview. Retrieved November 03,2005 from anyReports/annualReports/2004annualReport/2004_pdfs.htm
GM has a new model for change. Smith, James. Fast Company. December Retrieved November 04, 2005 from “
Honda operating data (unit sales breakdown) and company history. Retrieved October 27,2005, from
Honda Headlines. Retrieved November 1, 2005, from and
Toyota revenues and operating income by region and company history .Retrieved November 03, 2005, from
Toyota SWOT. Retrieved October 25, 2005 from