The Global Car Industry in 2004

            
 
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Case Details:

Case Code : ECOA126
Case Length : 12 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note :Not Available
Countries : Global
Industry : Auto and Ancillaries

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

China

China had emerged as an important car market. Car sales in China had been growing by leaps and bounds for a decade, with growth figures touching as much as 50% in some years. In 2004, the Chinese market overtook the German market as sales surged towards 5 million. In three years, the Chinese car market was expected to be bigger than Japan's...

Emerging trends

As 2004 drew to a close, product development was the top agenda for all the leading car makers. Each company was trying to compete with various niche models targeted at specific consumer segments.

Economics | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

They were renewing these models frequently to retain customer interest. This was causing the market to fragment...

The Road Ahead

A recent analysis of the financial performance of all the leading car companies revealed that of the top 17 car companies in the world, only half were earning more than the cost of their capital. The value creators in Europe were Porsche, Mercedes, BMW and Peugeot. In Asia, Toyota, Nissan, Honda, Hyundai and Kia qualified. America's Big Three - GM, Ford and Chrysler, along with Renault, Fiat, Mazda, Mitsubishi and VW seemed to have destroyed value...

Exhibits

Exhibit I: World's Top Ten Car Manufacturers, 2003
Exhibit II: Comparative Figures of World's Top Ten Car Manufacturers

Economics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


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