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The European Car Industry Andrew Rogan
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Transcript of The European Car Industry Andrew Rogan
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The European Car Industry
Andrew RoganTiffany BentleyChris Murphey
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Outline
• Leading World Manufacturers
• Sales and Production
• Marketing Strategies
• Effect of War
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Leading World Manufacturers
1. General Motors
2. Ford
3. Volkswagen
4. Toyota
5. Daimler-Chrysler
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Leading European ManufacturersVolkswagen
• Golf• EuroVan• Jetta• Jetta Wagon
• New Beetle• Passat• Passat Wagon
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Leading European ManufacturersVolkswagen
• Phaeton
• 12-cylinder engine making 414 horsepower
• $55,000 Europe• $75,000 US
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Leading European ManufacturersVolkswagen
• Touareg
• 13.6% increase in SUV sale
• Combines luxury with offroad
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Leading European Manufacturers Mercedes
• C• E• S• CLK• CL
• SL• M• N
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Leading European Manufacturers Mercedes
• Offer a wide variety of cars and trucks
• $24,000-$1 million
• New diesel car
• 30% better gas mil.
• Better for environment
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Leading European Manufacturers Porsche
• 911• Boxter• Cayenne• Carrera GT
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Leading European Manufacturers Porsche
• “Porsche is on the upswing”
• Offer the new Cayenne SUV
• Resale value only drops 23% after 2 years
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Sales (world)
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Sales (world)
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Production (world)
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Production (world)
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North American Production by Manufacturer (000) units
2001 2002 2003 2004BMW 120 126 161 165
Daimler-Chrysler 2,873 2,940 2,796 2,775
Ford 4,051 4,169 3,906 3,869
GM 5,061 5,446 5,117 4,947
VW 381 340 307 320
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European Production by Manufacturer (000) units
2001 2002 2003 2004BMW 776 883 874 980
Daimler-Chrysler 1,632 1,591 1,546 1,626
Ford 2,174 2,104 2,218 2,359
GM 1,804 1,951 1,804 1,896
VW 3,737 3,474 3,388 3,538
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Sales (Europe)
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Sales (Europe)
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Production (Europe)
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Production (Europe)
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Focus on Domination
• Ford counted about 228,000 Focuses sold from December through April in about 60 countries.
• About 24,000 more than the previous top-selling car, the Volkswagen Golf.
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European View
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American View
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Marketing
• During the upfront season, advertisers bid for and secure time on shows.
• Some hot programs, such as "American Idol," can command as much as $1 million for a 30-second spot.
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Marketing (cont.)• Broadcast network TV is still the highest
advertising venue although the impact of TV is declining.
• TiVo is up and coming, with Porsche and Acura as the newest automotive companies to advertise.
• Though GM is TV's biggest customer, the company continues to look at ways other than TV to reach consumers and is beginning to put more marketing dollars into other media, such as the Internet.
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Marketing & The War
• Mercedes-Benz USA LLC had immediately pulled all advertising that it could, excluding high-profile media commitments.
• They will soon resume regional commercials but not during war coverage.
• GM, the Chrysler Group and Porsche Cars North America Inc. have not changed their media schedules throughout the war.
• Ford Motor Co. and the Toyota and Lexus divisions continue to advertise, but not during news coverage.
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Effects of War• Improving the fuel economy of SUVs and other
light trucks has become a contentious issue among environmental groups, especially given the war with Iraq.
• US auto sales overall recently fell for the third consecutive month in March, although it was less than what was expected among the war and economic uncertainty.
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Effects of War (cont.)
• The German opposition to the war with Iraq is having very little, if any, effect on the willingness of Americans to buy German vehicles.
• Relief that the US market had held up relatively well boosted car stocks across Europe.
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Our References:
• Autoindustry.com • Automotive News• Automotive News Europe• Detroit Free Press• Wardsauto.com
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Conclusion
• Europe has a strong impact in the car industry not only locally but globally with the United States trailing in a close second.