The Crisis of the Car Industry

The crisis of the automotive industry

Arthur
Cohen
 Geoffroy
De
Ribou
 Hamza
Sabounji
 Mar9n
Aussedat


The
biggest
crisis
ever
in
the
history
of
the
 automobile
industry
 
 A
world
crisis…

– 
automakers
all
over
the
world
stricken
:
western
&
 emerging
countries
both
 – 
deep
fall
of
the
car
produc9on
 – 
demand
collapses


With dramatic social & economic consequences
Thousands of jobs threatened : already 800,000 car-related jobs lost in 2008 High risk of bankruptcy : The Big Three

The Causes

Ma ture market
•  A
market
that
has
risen
 •  Mistakes
of
the
car
industry
:

–  Logic
of

blind
producing
 –  The

main
auto
firms
are
posi9oned
on
vehicles
between

 15000
and
30000
Euros
 –  The
only
markets
that
are

s9ll
rising
are
the
less
than
1500
 Euros
vehicles
and
the
more
than
30000
 –  The
number
of
very
rich
people
is
increasing
just
as
the
 number
of
middle
class
people
(emerging
countries
 –  Thus,
the
only
companies
that
are
not
suffering
from
the
 crisis
are
Asian
low
cost
companies
(Tata)
or
premium
cars
 constructors


The oil crisis
•  2003‐2008
oil
crisis
raised
the
fuel
price
 threatening
the
whole
car
industry
 •  People
wouldn’t
invest
in
new
cars
before
a
 decrease
of
the
fuel
prices.
 •  American
carmakers
that
produce
principally
 SUVs
and
small
trucks
that
consume
a
lot
of
 fuel
were
the
first
suffering
from
the
crisis.
 •  Europeans
developed
their
low
consump9on
 vehicles
but
also
suffered


The financial crisis
•  Credit
shortage
knowing
that
most
cars
are
 bought
on
loans
 •  The
value
of
the
shares
of
the
carmakers
has
 crashed
just
as
all
the
market
did
with
the
sub
 primes
crisis
 •  The
industry
itself
couldn’t
obtain
credits
for
 its
strategic
opera9ons
(like
GM
with
Chrysler)


The environmental sensitivity
•  Eco
friendly
fashion
 •  People
are
more
aYen9ve
to
the
carbon
 emissions
of
the
cars
they
buy
 •  That

means
more

investments
to
develop
 green
cars
 •  The
big

three
suffer
today
of
their
image
of
... [continues]

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