Showing posts with label Global. Show all posts
Showing posts with label Global. Show all posts

Monday, October 17, 2011

GM Leader in Global Sales, Lags in Global Brand Equity

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. However, it wasn't just the misfortune of another firm that put GM on the top. 


One of the driving forces behind GM's position is its sales in emerging markets, specifically those in China. General Motors alone sold 1.27 million autos in the China in the first half of 2011. Bolstering sales in China is GM's Buick brand, one that was nearly on the chopping block due to lagging sales in the U.S. In 2009, GM sold four times as many Buicks in China than they did in the U.S. In fact, the Buick brand and its developments within the industry helped GM convince the federal government that with the bailout funds they received the company could eventually turn a corner (2). China now stands as the premier market for the Buick brand. Buick models and new technology within current models often appear in China before they appear in the U.S. market (3). Expanding the Buick brand in China and its other brands in emerging markets have helped put GM on top. 


While GM leads in sales worldwide, there is a different leader in terms of brand equity. Toyota, despite its hardships that caused it to drop to number two in terms of sales, holds the highest brand value of any global auto maker. The BrandZ Top 100 Most Valuable Global Brands study ranked car makers by combining financial reports with consumer opinions. BMW previously had the most valuable car brand in 2010. Toyota's brand value in 2011 is estimated at $24.2 million (4). General Motors was not within the world's 10 most valuable car brands, according to the BrandZ study (5). 




Sources
(1) http://www.dailyfinance.com/2011/08/05/gm-reclaims-crown-as-no-1-global-car-company/
(2) http://www.msnbc.msn.com/id/37361381/ns/business-autos/t/buick-may-owe-its-survival-china/#.TpzarGb_kcg
(3) http://content.usatoday.com/communities/driveon/post/2011/05/gm-sells-3-millionth-buick-in-china/1
(4) http://www.egmcartech.com/2011/05/09/toyota-overtakes-bmw-as-most-valuable-global-car-brand-in-2011-brandz-ranking/
(5) http://www.millwardbrown.com/BrandZ/Default/Categories/cars.aspx
(Image) http://www.automotorblog.com/gm-china-stands-to-sell-more-than-gm-usa/

Outsourcing in the Auto Industry

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 cases this is done to cut costs. This recent trend of "insourcing" is also used as a selling point for automakers that are opening new US plants (5, 6).


Volkswagen, specifically, made news in 2008 when it announced plans to open a new, state-of-the-art US facility in Chattanooga, Tennessee (7). It opened the plant in May of this year (8) and has been able to cut labor costs (2). It has also designed a vehicle specifically for the US market that is being manufactured specifically at the Chattanooga plant (9).


Sources:
1. http://it.toolbox.com/blogs/sourceoff-blog/big-three-automakers-outsourcing-to-mexico-39465
2. http://online.wsj.com/article/SB10001424052748704083904576335501132396440.html
3. http://www.kmmgusa.com/
4. http://www.reuters.com/article/2010/03/07/us-toyota-idUSTRE6260DA20100307
5. http://www.youtube.com/watch?v=j264EVvD4gI
6. http://www.youtube.com/watch?v=clwZqni4a9U
7. http://www.autoblog.com/2008/07/15/volkswagen-announces-plans-for-factory-in-chattanooga-tenn/
8. http://www.timesfreepress.com/news/2011/may/24/live-grand-opening-chattanoogas-volkswagen-plant/
9. http://www.autoblog.com/2011/01/09/2012-volkswagen-passat-chattanooga-vw/
image: http://greennews4u.com/wp-content/uploads/2011/05/VW-Plant-Chattanooga.jpg

Sunday, September 25, 2011

Ford Expecting Significant Growth in Asia Pacific, Africa

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. Many automakers, Ford included, have shifted their focus from the domestic market to these emerging markets since the recent economic downturn.


Ford's strategy for capitalizing on this emerging market includes designing and marketing more products for this region. The popularity cars with diesel engines, historically unpopular in the US, is growing more rapidly in India than in any other market (2). Ford will invest $72 million in a South India plant; the entire investment will go towards production of diesel engines for its Figo hatchback.


(1) http://online.wsj.com/article/SB10001424053111904106704576582193344608536.html?mod=WSJ_auto_IndustryCollection
(2) http://online.wsj.com/article/SB10001424052748703632304575451720343127244.html
(Image) http://www.autotribute.com/wp-content/uploads/2010/01/Ford-Figo.jpg

Share

Twitter Delicious Facebook Digg Stumbleupon Favorites More