Data Warehousing

Table of Content

Overview

Base of the Report

History of Automobile in the USA

Market Analysis

Demographics

Income Groups

Gas Price

Comparative Analysis of Auto Makers

Strategy

Core Competency

Management and Key Products

Future Plans

Financial Situation

Sales Figure of US Auto Makers (2000-2005)

Annual Reports

Stock Scenario

References and Citations

1. OVERVIEW

The world is changing fast and the automobile industry in the United States is changing faster. The Big players are worried about losing the market share and the sales which are going down every year.

The Japanese invasion and innovation into the American market has had a considerable effect on the automobile industry. There is a tough competition in the automobile market as the face of the industry is changing. Quality, reliability and fuel efficiency have become the major factors of judgment for the people to buy their cars. Trends and preferences are shifting towards the hybrid cars. Companies are coming up with new concepts to attract the customers. New marketing strategies are being formed by the companies to attract customers of different ages, ethnicity and groups. Demography is playing a crucial role in terms of 'who is going to buy what'. The technology is being fast outdated as the new ones are coming in at a greater pace and speed. With all these things in mind there are also other factors that are affecting the automobile industry. Gas prices are going high and the prices of the raw materials like rubber and steel required in the auto making process are also rising. Companies are finding new ways to cut cost and still have the qualities of the car intact. Many processes are being outsourced to the countries where the labor is cheaper. Many are buying technology from other manufacturers so as to improve the quality of the product without incurring costs for research and development. Few companies are trying to learn from the mistakes they committed and started plating smart while on the other hand, a few of them are still putting up arrogance. Some manufacturers have decided to merger with others to be able to survive while others have decided to stay alone. The market is expanding within its frame. The companies that have not changed with times are experiencing steady fall in their revenues and incomes. They are also experiencing a fall in their share prices in the share market. Competition is cut-throat and many brands are battling to survive in the market. Those which could not stand as unique brands have already died. Existing companies in the industry are facing new challenges as more and more foreign companies are entering the market. Among the new entrants a few already have the capacity to give the existing one a real touch competition.

1.1 Base of the Report

This report analyses the automobile industry from different angle. The top companies that we have kept in mind while preparing the report are:

* General Motors Corporation

* Ford Motor Company

* DaimlerChrysler AG

* Toyota Motor Corporation

* Nissan Motor Co., Ltd.

* Honda Motor Co., Ltd.

The report is based on:

 Automobile sales  This section shows the increase and decrease in sales of different companies in the automobile industry

 Profits  The revenues and incomes the companies are making and the how a company makes losses even when the sales are greater then the competitors.

 Changing Trends in the automobile industry  The effects of demography, income and fuel prices on the industry.

 Comparative analysis  Comparison of different companies in the industry and competition among various manufacturers

 Research and Development (R&D)  The research and development that the industry as a whole and the companies individually are going through.

2. HISTORY OF AUTOMOBILE IN THE USA

The actual process of car making started in the 1770. At that time cars ran on steam, however most of them did not do well. By 1880 the basic motive of building cars was to use them for every day use. In 1890s the Americans were driving cars made by Duryea, Winton and Haynes and a few others. By 1905 Gasoline cars started becoming popular as they were more reliable and run longer without refueling. By 1910 more powerful and spacious gasoline cars were being made.

In early 1900s cars were used mainly by wealthy people as a symbol of status. Rural Americans likes them as they could cover longer distances without depending on others means of transport like trains. They used cars to go to market, stores, recreation and some of them also used cars to plow their fields. Youth liked cars to go to movies, hangout and have fun instead of staying at home.

(Picture from Smithsonian)

FORD MODEL-T

Ford motor company made a car called the Model-T in the year 1908. Model