Case Study Of Korea's Motor Company

USA, UK and Europe. However, the demand has been rising steadily in India and China – both the world’s fastest growing economies. Thanks to Shanghai GM, a successful joint venture with the Chinese company SAIC, GM’s sales in China increased by 68 percent to 230,048 vehicles in

The makers of auto component are facing the problem of slowdown. Due to the less growth in passenger car segments and commercial vehicle, the supplies of the makers of the components fell as well. The fall is a combination of low local demand and the declining exports. Operational excellence, management of risk and planning of scenario are assured to become the key range for success. The components of auto industry, world-wide has faced economic restructuring. The deceleration of sales in many markets in the industry of auto component s was not a long-term challenge, but a considerable market share loss in increasing competition in the local

By the turn of the century hundred of small companies were producing automobiles both in Europe and in America. By 2004, the industry was in different stages of its life cycle in different parts of the world. The US industry entered a period of rapid growth during 1910-28, and reached its peak of production in 1965. In the two decades up to 2004, car production was on a downward trend, but if trucks were included, output was broadly stable (see table 4.2). In Europe and Japan too, total production was showing a declining trend The problem of market saturation was exacerbated by the tendency for cars to last longer(see table 4.3). [Tables 4.2 and 4.3 about here] As a result, the automobile producers have looked increasingly to the newly industrializing countries for market opportunities. During the 1980s and 1990s countries such as Korea, Malaysia, Taiwan, Thailand, Turkey, Brazil, and Argentina offered the best growth prospects. As these markets became increasingly saturated, so China, India, and the former Soviet Union were seen as the ““next wave”” of attractive markets. With the opening of many of these countries to trade and direct investment, the world production of cars and trucks s continued to grow (see table 4.4 ). [Table 4.4 about here]

Global competition in all industry especially the automobile increases every time. Since 2009, China has become the world's largest automobile producer with an annual sale of over 14 million vehicles. This means it had surpassed Japan's previous records since by 2010 the government had focused their records to over 17 million. This growth has been elevated by the high demands due to the rising incomes. The middle class has advanced its status through the help of the supportive industry policies from Chinese government (Keith 2012). This is why there was a need to introduce the FIAT cars into the Chinese Automobile Industry.

Customer satisfaction is a marketing term that measures how products or services supplied by a company meet or surpass a customer’s expectation. Customer satisfaction is important because it provides marketers and business owners with a metric that they can use to manage and improve their

One of the world’s largest automakers, GMC has it’s roots traced back to 1908. Also known as GM, this company is a United States-based automaker with its headquarters in Detroit, Michigan. After the General Motors Company was founded, it soon became known as one of the largest car manufacturers in the world. In 1909, the Grabowsky Rapid Motor Vehicle Company (GMC) joined with GM. The trade name GMC Trucks was first exhibited in 1912 at the New York Auto Show and registered with the U.S. Patent Office eight months later. The

The Ford Motor Company is one of the largest automakers in the world and it is notable due to its powerful position within the global market place. Still, aside from this, Ford is also notable from a business analysis standpoint, representing a firm that has lost its competitive position to the Japanese automakers, due to the inability to recognize changing market trends. Also, the company is notable as it was severely hit by the economic crisis, yet refused aid under TARP (The Troubled Asset Relief Program) and focused on internal restructuring.

The ford company was established on June 16, 1903, by Henry Ford in Dearborn, MI. The Company keeps on growing from an auto organization to an auto and a portability organization, the organization stays concentrated on expanding its worldwide authority in trucks, vans, business vehicles and execution vehicles, while developing its worldwide quality. The vital mission is to improve individuals ' lives and it continues as before. It implies proceeding to make incredible autos, trucks, and executes improvement chances move individuals in new ways. The strategy of the company is to accomplish an arrival by extending an organization to a mechanized and the adaptability organization through business advancement and concentrated on monetary

#### This is incomplete ### China has emerged as the center of focus in the automobile industry. From its mere production of trucks in the earlier years of development and the further production of saloon cars for specific members of the political class, the country has evolved to be leading producer and consumer of cars. This has been through various pitfalls in the process of growth with success and failure of certain policies. One of the significant events that were followed by a spur in the growth of local production was its accession in the WTO. Nevertheless, with the mix of other macro economic variables, the future trend of the industry may take a different direction due to possible factors for instance domestic foreign investment (DFI) and possible market saturation or even economic downfall.

The longstanding reputation of Toyota as the best car manufacturers in the world was questioned in 2009 August when a California Highway Patrol Officer known as Mark Saylor who was off-duty together with his family met a fatal accident. The patrol office call 911 from his Lexus as the car gas pedal became stuck and made the car to accelerate over 100 mph in Highway 125 in San Diego. According to 911 tape recording, the officer final word was for the family to hold on and pray as the Lexus crashed into another car. This accident led to the death of all four passengers which became a public relation disaster for Toyota Motor Corporation. Since the fatal crash of a Lexus, Toyota vehicle have become exposed with a number of

According to a web article posted by The Economist online on Dec 27th 2011, “over the past ten years, real GDP growth averaged 10.5% a year in China and 1.6% in America; inflation (as measured by the GDP deflator) averaged 4.3% and 2.2% respectively”. Foreign direct investments have also been on the rise over the last decade, and consumer spending has been strong. Statistics provided in the case study by Farhoomand and Huang, 2010 show huge annual increases in car sales in China versus the rest of the world. As the world’s 2nd largest automobile producer and market (Farhoomand and Huang, 2010) and with its large population and booming economy, China is a key market for foreign companies, and particularly those in the car industry.

Toyota Motors Company is multinational Japanese automobile manufacturer, a corporation that has it 's headquartered at Toyota, Aichi. Toyota Motors are the largest world’s manufacturer of the automobiles about the data of 2013 by the number of vehicles. Toyota was also the biggest producer of the cars in 2012 and has been the first an automobile manufacturer that produced ten million vehicles per year. It is also listed the most major manufacturing company in Japan of the market capitalization and revenue. The motors industry produces its vehicles under the five viz. Toyota, Lexus, Ranz, Hino and Scion. Toyota Motors Company also has joint ventures that are Toyota Kirloskar based in India, GAC Toyota and the Sichuan

The literature review of this research will contain different elements in order to give a full in depth review into the Chinese automobile industry’s development and the Volkswagen Group (VW) in particular. The role of Government and the Open Door Policy, foreign direct investment (FDI) from VW, Resource-based Theory are the main issues that will be discussed in the following chapter. I have chosen these elements because they are essentials factors to the Chinese automobile industry. Regarding the role of the government, the government has been heavily influential in the development of the automobile industry all around the world (Zhaotao, 2015). Good examples of Asian government manipulating the

The Chinese automobile market has grown by 1/3. This means that there is a lot more room for automobile companies like Honda to expand and grow. Honda will be able to increase its production and sales as the market will be bigger.

Mr. Park immediately proceeded to call his good colleague, Michael Cheng, who worked for Mckinsey & Co. in China. Mr. Cheng had a vast knowledge of the automotive industry in China. He previously worked as a car salesman in China for several years and was very familiar with the country’s imports and exports of automobiles. Before valuating the project, Mr. Park felt like he still needed someone to paint a better picture of China’s demography as well as its political and economic status. Therefore, he called upon his good friend, Mr. J.P. Mei, who works for the government of China. Mr. J.P. Mei was also very familiar with foreign direct investment processes through a large number of projects dealing with global companies.