1、-0-,AutomotiveIndustryHistory,-1-,Whoinventedtheautomobile?,Assumptionsconcerningtheanswertothisquestiondifferwidelythroughouttheworld:InEngland:manypeoplewilltellyouthatthecarwasinventedbyCharlesRollsandHenryRoyceInAmerica:IntheUSA,GeorgeSelden(1846-1922)claimedthathewastheinventoroftheautomobile.T

2、hissonofapatentattorneyhadfiledapatentapplicationforamotorvehiclein1879.Hewasgrantedthepatentin1895withouteverhavingbuiltanautomobile.SeldenbombardedAmericancarmanufacturerswithdemandsforlicensefees.Itwasnotuntil1911,followingprotractedlitigation,thatHenryFordsucceededinoverturningthemysteriousSelde

3、npatent.Today,mostAmericansbelievethatHenryFordinventedthecar.InAustria:evenhighlyrespectedhistoriansbelievedforalongtimethattheVienneseSiegfriedMarcus(1831-1890)builtthefirstcarin1865whenhefittedastationaryenginetoacartandtookitfora200metertestrun.InFrance:ThewidelyheldFrenchviewisthatitwasCountdeD

4、ionandGeorgesBoutonwhoinventedthecar.,In1771,FrancesNicolasJosephCugnot(1725-1804)designedandbuiltavehiclewhichwaslaterdeclaredtobethefirstautomobileintheworld.Itwasamonstroussteam-poweredaffairwhichissaidtohavecausedaroadaccidentduringatestrun.In1801,itwastakentotheConservatoireNationaldesArtsetMti

5、ersinParis.,-2-,Thefirstautomobileintheworld,Yearbuilt:1771Name:LeFardierInventor:JosephNicolasCugnot,FranceTechnology:2verticalcylindersteamengineCylindersvolume:62litersMaxspeed:4km/h(2.5mph)Whereisitnow?MuseNationaldesTechniquesduC.N.A.M.-Paris,-3-,19501970199020001)GeneralMotorsGeneralMotorsGene

6、ralMotorsGeneralMotors2)FordFordFordFord3)ChryslerChryslerToyotaVolkswagen4)StudebakerVolkswagenNissanToyota5)NashFiatVolkswagenDaimler-Chrysler6)Kaiser-FrazerToyotaFiatNissan7)MorrisNissanHondaHonda8)HudsonRenaultPSAFiat9)AustinBritishLeylandChryslerPSA10)RenaultPSARenaultRenault,Eachdecade,themake

7、upoftheindustrychangessignificantly,Top10Manufacturers(involume),-4-,TodaysAutomotiveIndustryOverview,-5-,AutomotiveMarketsizekeyfigures(passengercarsandutilityvehicles,inthousands),America:272,627(UnitedStatesalone:203,720)Europe:264,217(EuropeanUnionalone:190,083)Asia:126,301(Japanalone:70,815)Mid

8、dleEast:18,346Africa:14,956Australia:14,250,Source:CCFA,-6-,Marketsize,Volumedividestheworldintotwosets:Largeregionalmarkets:NorthAmerica,WestEurope,andAsia-PacificSmallerregions:SouthAmerica,EastEurope,Africa/MiddleEast,-7-,Markettypes,Maturemarkets:NorthAmerica,WestEurope,JapanandAustraliareplacem

9、entdemandEmergingmarkets:DevelopingAsia,SouthAmerica,EastEurope,Africa/MiddleEastincrementaldemandhugeopportunities(formerSovietUnion,ChinaandIndiahavehugepopulationswithlowcardensity)maytakegenerationsforconsumerstandardsoflivingtoreachwesternstandards(long-termviewforshareholders)70%ofanticipatedg

10、rowthexpectedtocomefromoutsideofNorthAmericaandWesternEurope,-8-,GrowthProspects,Globallightvehicleproductionisgrowingfrom55+millionunitsCapacityissurpassing80millionunits,-9-,GrowthProspects,-10-,WorldsLargestvehicleManufacturers,-11-,CreationoftheGlobalSix,-12-,StockExchange:NYSEHeadquarters:Detro

11、it,MI,USAFoundedin:19082000data:Revenues:$183.3billionNumberofcarandtrucksales:8.6millionNumberofemployees:372,000Brands:Chevrolet,Pontiac,Buick,Oldsmobile,Cadillac,GMC,Saturn,Hummer,Saab,Opel,Vauxhall,HoldenFinancing:GMAC,GeneralMotorsCorporation,-13-,GeneralMotorsCorporation,StrategicIntentGlobal,

12、NorthAmericanexpansion.neverwantstosurrender#1rankingMarketshareversusprofitabilitymentalityremainsunderthreatwithFordgrowthLeveragesize,globalcoverage/componentsystemsapproachEmbarkedonnewleancapacityexpansionaroundtheworldAttemptingtoextendpolicytodevelopingmarketsStrengthsSurvivalguaranteedinageo

13、fconsolidationStrategicalliancessought,butnotfoundsofarEarlycostreductionprogramspayingdividendsHugeglobalplatforms(architectures)offerenviablescale,ifsuccessfulDelphispin-offShouldhelpvehiclesidessupplystrategy,costcompetitivenessandlaborsituationWeaknessesNorthAmericahas“toomany”everything(brands,

14、models,plants,workers,dealers)Bernalreorganization,againTryingtorevolutionizelaborcontract/relationship/roleinatimeoflaborunrestProductuninspiring.car-truckhybridslasttomarket,althoughinstunningvarietyEurope,formercashcow,remainsonlifesupportInternaldisarrayproductlacking.engineerin

15、goverextended,-14-,FordMotorCompany,StockExchange:NYSEHeadquarters:Dearborn,MI,USAFoundedin:19032000data:Revenues:$170.06billionNumberofcarandtrucksales:7.424millionNumberofemployees:346,000Brands:Ford,Mercury,Mazda,AstonMartin,Jaguar,Lincoln,Volvo,LandRover,Financing:FordCreditFinancing,JacquesNass

16、er,FordMotorCompanyPresidentandChiefExecutiveOfficer,-15-,StrategicIntentUS$6.45billionVolvopurchasebeatoutothersuitors(VW,FIAT,possiblyGM)PurchasebridgesthegapinEuropebetweenFordandJaguarWillstrengthenunderrepresenteddemographicwithinFordproductline-upinNorthAmericaFordhasproven(withJaguar)thatthey

17、canmanagebrandheritageStrengthsNorealproductoverlapWillfitaboveMondeoinEurope(anareaoftraditionalFordweakness)andhasadifferenttargetaudiencethanJaguarInNA:willnotintrudeonLincoln“traditionalluxury”Platformsharingopportunities:CDW-basedS/V40,Focus-basedsmallcar(premiumhatch),etc.WillsolidifyFordsstan

18、dingintheglobalpremiumcarsegmentwhenitsprimarycompetitor(GM)isshowingweaknessesinthecategoryEx-BMWproductguru,WolfgangReitzle,toheadnewFordPremiumCarGroup(Lincoln,Volvo,Jag,Aston)-fitsinwithFords“carguys”(Nasser,Parry-Jones,Mays)BringsFordever-closertonumberoneintheworldintotalproductionWeaknessesFo

19、rdwillhavetoaddressVolvoshighoverheadandproductioncostLikeJaguar,couldbeadecadebeforetruesynergiesareachieved(Volvoproductstoofaralongindevelopmentforquickplatformsharing),FordMotorCompany,-16-,ToyotaMotorCorporation,StockExchange:TokyoHeadquarters:Tokyo,JapanFoundedin:19372000data(April1999march200

20、0):Revenues:Yen12.879billions(US$121billiontranslatedattherateof106.15=US$1,theapproximatecurrentexchangerateatMarch31,2000)Numberofcarandtrucksales:5.53millionNumberofemployees:210,000Brands:Toyota,Lexus,DaihatsuFinancing:ToyotaFinanceCorporation,ToyotaMotorCreditCorporation,FujioCho,PresidentandCh

21、iefExecutiveOfficer,-17-,StrategicIntentGrowlargerEmbracingbiggerisbetter:10%ofglobalmarket,40%ofJapanesemarketIntegrateDaihatsu,Hino,AutoWorksDiversificationawayfromconventionalvehiclemanufacturingSpread,notadapt,currentcultureasmeanstosuccessinnewmarketsStrugglinginternallywithappropriateorganizat

22、ionalstructure,managerialstyleStrengthsFinancialstrengthandstabilityLeadership:Okudaaggressive,discerninggoalofidentifying/overcomingallautomotiveweaknessesManufacturingCorollagetstheretireesinNorthAmerica.needsyoungcustomerstomoveuptomoreprofitablevehicles,ToyotaMotorCorporation,-18-,Renault-Nissan

23、(Thecompaniesarenotconsolidated),StockExchange:Renault:ParisNissan:TokyoHeadquarters:Renault:Boulogne-Billancourt(France)Nissan:Tokyo,(Japan)Foundedin:1898(Renault),1933(Nissan)2000data:Revenues:Euro40billions(Renault),US$56billions(April1999March2000,Nissan)Numberofcarandtrucksales:2.35million(Rena

24、ult,includingLCVs),2.6million(Nissan)Numberofemployees:166,000(Renault)133,000(Nissan,includingconsolidatedsubsidiaries)Brands:Renault,Nissan,Dacia,Samsung,InfinityFinancing:RenaultCrditInternational(RCI),LouisSchweitzer,RenaultChairmanandChiefExecutiveOfficer,-19-,Renault-Nissan,StrategicIntentHigh

25、-riskindependencestrategyRenault:onlywaytogetbiggerandretaincontrol;Nissan:onlywaytoavoidbankruptcyTogether:findenoughcostsavingstofendoffotherGlobalfiveStrengthsStrengthsNiceon-paperstrategicfitFourthlargestautomaker;well-balancedregionalproductionmixComplementarybusinessstrengthsNissan:manufacturi

26、ng,technology,engineeringRenault:productplanning,management,designProductcomplementationMixofRenaultssegmentinnovationandNissansspeedtomarketholdspotentialWeaknessesThisisnotamerger!BenefitsofsizeandcooperationcanonlystemfromintegrationReluctantallianceNissanproud,Renaultsmallerandclearsecondchoicet

27、oDaimlerChryslerEnormousculturalbarrierstoovercomeDebt,debt,debtexcesscapacity.stilllotsofhardchoicesyettobemadeDifficultyinfindingfinancingfornextgenerationofvehicles,futureinvestmentNumbernineinkeylong-termgrowthpotentialdevelopingAsiamarket,-20-,VolkswagenAG,StockExchange:FrankfurtHeadquarters:Wo

28、lfsburg,GermanyFoundedin:19382000data:Revenues:Euro85.25billionNumberofcarandtrucksales:5.1millionNumberofemployees:324,000Brands:Volkswagen,Audi,Seat,RollsRoyce,Bentley,Skoda,Bugatti,LamborghiniFinancing:VolkswagenBank,VolkswagenLeasing,FerdinandPich,VolkswagenAGChairman,-21-,StrategicIntentWorlddo

29、mination.oneofGlobalBig6NoapparentboundstoPichsambitionsOverly-ambitiousautocraticleaderwhothreatenscorporate/industrystability,orgenius?Global,full-linevehicleproducerFoundationforeverythingelse:differentiatedbrands/productsforallsegmentsandmarketsAggressivelytargetingvolumeandproductdiversityincre

30、ments,basedonmultiplebrands.acquisitionsreinforceambitionsgrowcommercialvehicles,bigtrucksBeeverywhereimportantandbebig(WE,SA,China,EE,NA,India).regainstatusisinNA.whataboutSEAsia?StrengthsMostadvancedplatformconsolidation/supplierschemeDifferentiatedbrandstrategiesfromcommonplatformsholdingup.enorm

31、oussavingsLopezlegacy:forgingandexperimentingwithnewrelationshipsDividendsfrompastrationalizationplans,acquisitions.stillhungryNumberoneinEegratingEastEuropeWeaknessesProfitabilitystilllagsthatofotherGlobal5Dangerofdilutedbrandequityduetobrandoverload(seeGM)Costofmaintaining/differentiatingallbrands/productscouldbecomeoverwhelmingifVWstumbles,weightofbrandproliferationcouldbringitdown,Volks