Success in Automobile Industry

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Running head: SUCCESS IN AUTOMOBILE INDUSTRY

Success in automobile industry:
General Motors and Ford Motor Co.
May 8th, 2008

Abstract
Automobile becomes a necessary of transportation. As the result, every automobile manufacturer is trying to share in automobile market. At beginning, there were only few automobile manufacturers in the world, especially in the United State and Europe. As time passing by, not only American auto brands and European auto brands in the world, but also Korean auto brands and Japanese auto brands. Especially the Toyota is an auto giant brand from Japan. The global automobile market is not as simple as one hundred years ago. Therefore, how to survive in a new competitive automobile industry is become a serious issue for American automobile brands, General Motors (GM) and Ford Motor Co. (Ford), which both have one-hundred-year history. Offer variety automobile products, such as convertible, coupe, hatchback, sedan, SUV, truck, van, and wagon is not the only way to satisfy automobile customers. Automobile manufacturers now also need to pay attention to global environment issues, such as green environment issue, technological issue, energy issue, and even political issue. This paper will discuss how these two American global automobile manufacturers deal with the issues to survive in the competitive global automobile industry, and what are the appropriate strategies that GM and Ford need to be globally successful.

Table of Contents
Table of Contents………………………………………………………………………………….3 Introduction………………………………………………………………………………………..4 Literature Review………………………………………………………………………………..5 Methodology……………………………………………………………………………...……….6 Results……………………………………………………………………………………………..7

Companies’ Profiles……….……….………………………………………………..7 Global Competitive Strategies……….……….……………………………………..8

Conclusion and Recommendations………………………………………………………………11 References………………………………………………………………………………………..14

Introduction
Every company wants to maximize its own profits, and minimize its costs. In global automobile industry, every company is chasing the profits and reducing the costs as well. Global Automobile Manufacturers (2007) said that the global automobile manufacturers sector value in 2002 to 2006 were $908.2 billion, $1,011.9 billion, $1,061.2 billion, $1,118.8 billion, and $1,176.9 billion, and the growth from 2003 to 2006 were 3.20%, 4.9%, 5.4%, and 5.2%. The compound annual growth rate of the sector in the period 2002 to 2006 was 4.7%. In 2002 to 2006, the growth rates keeped in positive, that means the global automobile industry was keeping its markets up. Global automobile industry is not only for American and European, but also Japanese. Nowadays, in the United States, it is easily to see several types of Japanese car on the streets, and the amount of Japanese car becomes higher and higher. Toyota got 15.9% of global market share around the world, and it maintains going up (Global Automobile Manufacturers, 2007). This is an alert for American automobile manufacturers, and it is a message says “Here we come.” Facing a giant challenger from Japan, the ways to against it for american automobile brands is the most important issue to develop. Challenger’s entry is not the only problem for American automobile brands, but also oil price keep going up, green environment, public transportation systems, and weak global economic. First of all, world’s oil price keeps going up because the world’s demand is higher than middle-east countries’ supply, and oil becomes a major natural energy resource for the planet. This is the main reason that the oil price keeps going up. Secondly, green environment is a trend of all around the world, especially for the Global Warming, carbon dioxide, and recycling. To solve this kind of problem, hybrid car is a trend to reduce the damage for green environment. Another issue is that more...
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