Automobile Industry Struggles to Keep Up With Demand for Fuel Efficiency, 10-3-2006
2004 through 2006 will long be remembered as a pivotal period in the automobile industry. It was a period during which high gasoline prices started a sea change among U.S. consumers that is finally creating significant demand for fuel-efficient vehicles. Additionally, there are vast changes taking place in automobile manufacturing. Today, more than ever, car manufacturers and their suppliers are cooperating in the design and manufacture of new cars in ways that are revolutionizing the entire process. Meanwhile, the Big Three (American automakers GM, Ford and Chrysler Group, the American unit of DaimlerChrysler AG) face difficult times at best. Ford, GM and Chrysler are under intense competitive pressure from foreign-based firms while enduring high labor costs at home. Needless to say, fundamental changes are taking hold of the industry. Some of the most notable of these are:
- Big Three's Dominance of the U.S. Auto Market Is Compromised.
Throughout most of automotive history, the Big Three have dominated the U.S. market. In July 2006, that dominance was compromised when Toyota's unit sales for the month surpassed those of number two ranked Ford, while Honda surpassed the Chrysler Group to rank fourth in unit sales.
- Car Purchasers Turn to the Internet in Droves.
A J.D. Powers and Associates report claims that 62% of new-car buyers go online for information before buying.
- Globalization/Consolidation of Manufacturers.
The globalization of the auto manufacturing industry accelerated in earnest in the late 1990s, when Chrysler merged with European conglomerate Daimler-Benz, maker of Mercedes-Benz, to become DaimlerChrysler AG. GM now owns Swedish carmaker Saab and 42% of South Korea-based Daewoo, now known as GM Daewoo Auto & Technology Company. Meanwhile, Ford bought Jaguar, Volvo, Aston Martin and Land Rover, and has partnered with Mazda Motor Corp.
To find out more about these exciting trends and more, check out Plunkett's Automobile Industry Almanac 2007, just released, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett's completely up-to-date online database!
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