2011 ~ Workings of the Auto Industry

Sunday, November 13, 2011

SEMA 2011

11:32 PM Dan No comments

SEMA (the Specialty Equipment Market Association) held its annual SEMA Show in Las Vegas from November 1st through 4th this year. (1) In recent posts, we've talked about entrepreneurship in the auto industry and some of the difficulties faced by entrepreneurs trying to enter the market. Effective marketing can be a difficult task for an entrepreneur...

Influential leaders of Toyota

8:41 PM Monika Smidova 1 comment

Toyota is known for keeping the family tradition when changing an important post in the company. Since 1937, when the company was founded by Kiichiro Toyoda, we see that the main positions in the company has been passed down from generation to generation. I would like to mention the name of Shoichiro Toyoda, who was President (1982-1992) and...

Entrepreneurs in auto service industry

6:21 PM Monika Smidova 1 comment

In recent posts, we were mainly devoted to automobile companies, their profits, supply and demand, international attitudes, promotion and popularity of the brand, etc. However, it is important to mention that it is not just about to selling or buying cars, it´s also about how to keep it in shape . I found some interesting stories of entrepreneurs...

Entrepreneurship and its Affect on Market

12:49 PM Dan No comments

A high school friend worked for entrepreneur Michael Hinderliter for about 2 years. My friend's job was to prepare and serve bubble tea for the Chill Bubble Tea franchise, but he came into contact with the owner because they shared a common interest: custom car parts. The entrepreneur also ran a car parts importing business. He started by...

Toyota's Profits Dip, Earthquake to Blame

12:34 AM Dan 2 comments

Toyota has seen a significant drop in profits in its most recent quarterly report for FY2012 Q1 (1). This drop was expected due to the Japanese earthquake. Toyota's net income dropped from over 210,582 million yen to 2,859 yen, a 207,732 million yen decrease. Toyota is has been worldwide leader in and is often the leader in profits by net income...

Ford Up in Revenue, Down in Earnings

9:16 PM Megan Rosburg 1 comment

Ford Motor Co. has seen a sudden 2% drop in earnings, even though its revenue has increased by 14% (1). Revenue is the value of what a firm received for goods sold, services performed, and other additional payments received. If their revenue escalated by such a large amount than why is Ford seeing a drop in...

"U.S. and China Play Chicken Over Accounting"

9:13 PM Monika Smidova 2 comments

In recent weeks we have noticed that the finance relationship between two global rivals, USA and China, are sharpened. The main reason is the audit reports for Longtop Financial Technologies; the electronics firm that was kicked off the New York Stock Exchange in August. One of the worst-possible case outcomes is that China companies could be completely...

GM Leader in Global Sales, Lags in Global Brand Equity

7:30 AM Collin H No comments

General Motors again took the top spot in the automobile industry as the number one global auto company, in terms of autos sold. In 2009, Toyota stripped GM of the title it previously held for years (1). Toyota took the number two spot in the wake of its recalling of 8.1 million cars and its slashing of production due to the March earthquake in Japan....

Outsourcing in the Auto Industry

3:30 AM Dan 2 comments

Many if not all major Auto manufacturers outsource or have outsourced during their company history (1). For those familiar with the industry, it can be difficult to to imagine the industry without outsourcing. A recent trend for both US companies and US divisions of companies based overseas is to open domestic factories (2, 3, 4). In some...

Foreign Auto Companies

11:03 PM Megan Rosburg No comments

According to this graph, it shows a clear downhill trend in the top revenues for the “Big Three” between the years 2005-2008 (1). The Japanese automakers however saw tremendous success. As a result, revenues for the GM, Ford, and Chrysler are all significantly lower in 2008 compared to what they were ten years ago (1). Economists noted that,...

Global Companies

2:04 PM Monika Smidova 3 comments

To be considered as a multinational corporation, company has to show some physical presence in different nations. There are many companies, such as Toyota, Ford and Global Motors which operate in different countries all around the world (North and Latin America, Europe/Africa, Oceania & Middle East, Asia) (1) + (2). One of the advantages of being...

Economy, Gas Affect Consumer Buying Trends

3:10 AM Collin H 2 comments

Gone are the days when auto makers can rely on marketing or strong fads to get cars off the lot. During the recession and in its wake, car buyers are making rational, price-based decisions that are influenced largely by gas prices. Auto makers have slimmed back their product lines in the interest of fuel efficient cars. Interestingly enough, consumers...

Big Three

9:39 PM Megan Rosburg 3 comments

When it comes to automakers in the United States, one term that will be consistently brought up is the term “Big Three”. The “Big Three” consists of the auto companies Ford, General Motors, and Chrysler. Other than producing the most vehicles in Northern America, these three automakers have a huge influence...

How do companies differentiate themselves from one another?

8:02 PM Monika Smidova 2 comments

Companies differentiate themselves by having different mission statements as well as different models. Each company wants to be the most successful and respected car company in various part of the world, but only some of them actually uses efficient strategies to help the buyers buy. The main distinction is in promoting the product. Whereas one...

Hyundai CEO Yang Seung-suk Retires

9:42 PM Dan 1 comment

Yang Seung-suk has retired from his position as CEO of Korean automaker Hyundai Motor Co. Mr. Yang held this position for only three years, but in these years led Hyundai to among the top of its market despite the economic downturn. Hyundai became the 5th largest automaker by units sold. Despite his success, Yang's departure is not unusual: Hyundai...

Ethical Dilemmas of the Auto Industry

7:00 AM Collin H 6 comments

Every industry has seen its scandals, and with those scandals comes an obligation for companies to do what is ethical. Many times, companies fall down on this in order to salvage their public image and bottom line. The auto industry is no stranger to ethical dilemmas that have plagued America's corporate landscape. One ethical dilemma that...

Ford Expecting Significant Growth in Asia Pacific, Africa

10:25 PM Dan 2 comments

Ford's Figo model for India Ford Motor Company is expecting significant growth in the Asia Pacific and Africa markets in the next decade, from one sixth of their total sales currently to one third by 2020 (1). Its Asia Pacific and Africa region includes emerging markets such as China and India, as well as Australia, South Africa, and Thailand....

Corporate Social Responsibility

10:13 PM Megan Rosburg 2 comments

Corporate social responsibility is a term that acts as a moral monitor for businesses to keep themselves accountable. It covers the companies conformity to obey the law and high ethical standards that are set by the consumers. Active CSR companies would emphasize its positive involvement with the community, environment, employees, and customers. Several...

Mission Statements and Significant Values

4:06 PM Monika Smidova 2 comments

Every group, whether it's school, bank or family has its own rules. Rules must be followed and with no rules is hard to find the way to success. Therefore, companies have set their own rules, values and mission statements that seek to accomplish various goals, such as providing high-quality products to their customers, treating employees fairly...