presentation on auto mobile & economic crisys

8/14/2019 Presentation on Auto Mobile & Economic Crisys

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AUTOMOBILE INDUDUSTRY ANDECONOMIC CRISIS



CRISIS AND AUTO MOBILEINDUSTRY

The automotive industry crisis of 2008–2010 was a part of a global financialdownturn. The crises affected European

and Asian automobile manufacturers, but itwas primarily felt in the Americanautomobile manufacturing industry. Thedownturn also affected Canada by virtue of

the Automotive Products Trade Agreement



Increase in fuel prise The automotive industry was weakened by a

substantial increase in the prices of automotive fuels linked to the 2003-2008energy crisis which discouraged purchases

of sport utility vehicles (SUVs) and pickuptrucks which have low fuel economy. Thepopularity and relatively high profitmargins of these vehicles had encouraged

the American "Big Three" automakers,General Motors, Ford, and Chrysler tomake them their primary focus. With fewfuel-efficient models to offer to consumers,

sales began to slide.



Slashing Down the Production Toyota declared that it expected the first

time loss in 70 years in its core vehicle-making business. Loss of $1.7 billion, in itsgroup operating revenue, would be its first

operating loss since 1938 (Company wasfounded in 1937). Toyota saw its sales drop33.9 percent and Honda Motor by 31.6percent



Nissan, another leading Japanese carmanufacturer, announced that it alsowould be slashing production and willreduce its output by 80,000 vehicles in the

first few months of 2009.In December 2008, Suzuki Motor

Corporation, Japan's fourth biggest carmanufacturer, announced that it will cut

production in Japan by about 30,000 unitsdue to falling demand. The company isexpected to face its first profit drop in eightyears for financial year ending in March

2009.



United States, and Bailout The crisis in the United States is mainly

defined by the government bailouts of both General Motors and Chrysler, whileFord secured a line of credit in case they

require a bridging loan in the near future.Car sales declined in the United States,affecting both US based and foreign carmanufacturers. The bridging loans lead to

greater scrutiny of the US automotiveindustry in addition to criticism of theirproduct range, product quality, high labourwages, job bank programs, and healthcare

and retirement benefits.



The Step of US GovernmentIn the United States under Chapter 11, if a

company declares bankruptcy then they cango to a bankruptcy judge who will then decidewhat is in that company's best interest. The

judge will look at all of the company's differentaspects and from that they will create a leanerand stronger company. GM, Chrysler, and Fordare all in trouble because they have notcorrectly managed their company's products,time, and money. With the bailout planPresident Obama and his administration

currently have available it will ensure thatthere is restructuring of the companies. Theyhave planned for GM to be funded for 60 daysduring which they must come up with a sturdyplan for restructuring and the CEO also mustresign. The plan that has been established for

Chrysler is that they have 30 days to partnerwith Italian automaker Fiat and then the will



Japanese CompanyWith high gas prices and a weak US

economy in the summer of 2008, Toyotareported a double-digit decline in sales forthe month of June, similar to figures

reported by the Detroit Big Three. For Toyota, these were attributed mainly toslow sales of its Tundra pickup, as well asshortages of its fuel-efficient vehicles such

as the Prius, Corolla and Yaris.



Toyota Camry North Americanconsumers turned tohigher-quality andmore fuel-efficientproduct of Japaneseand Europeanautomakers.However, many of the vehicles

perceived to beforeign wereactually"transplants,"foreign carsmanufactured or



Steps to RecoverCar companies from Asia, Europe, North

America, and elsewhere have implementedcreative marketing strategies to enticereluctant consumers as most experienced

double-digit percentage declines in sales.Major manufacturers, including the Big

Three and Toyota offered substantialdiscounts across their lineups. The Big

Three faced criticism for their lineups,which were seen to be irresponsible in lightof rising fuel prices.



South Korean automakers have beengenerally much more profitable than theirUS and Japanese counterparts, recordingstrong growth even in depressed markets

such as the United States. Despite a globaleconomic slowdown, Hyundai-Kiasuccessfully managed to overtake HondaMotor in 2008 as the world's 5th largest

automaker, climbing eight rankings in lessthan a decade.



India and ChinaChina In 2008 the Chinese government reduced

automotive taxes in order to spur flaggingsales. In January 2009, Chinese auto-manufacturer Chery reported unprecedented

monthly sales.IndiaCiting falling production numbers, the State

Bank of India reduced interest rates on

automotive loans in February 2009.For the first few months of 2009, Tata Motors

conducted a widespread marketing campaignheralding the debut of the Tata Nano. Billed as"the people's car," the manufacturer hopes the

low cost will encourage customers to purchasethe vehicle des ite the on oin credit crisis.



Trendy vehicle of 2010



The Bajaj Pulsar 150cc-DTSi is one of the mostpopular bike on the Indian roads, almost tailor madefor heavy city traffic.

The Bajaj Pulsar150cc of course shares the samekiller looks as the other Bajaj Pulsars and comes inthe shade options of Plasma Blue, Cocktail Wine Red,Misty Grey Silver, and favourite - Midnight Black.

http://www.infibeam.com/SDP.action?catalogId=P_A_B_BAJAJPULSAR150CCDTSI2007

http://www.infibeam.com/SDP.action?catalogId=P_A_B_BAJAJPULSAR150CCDTSI2007

http://www.infibeam.com/static/dcdesign/designer-cars-india.html




automotive designer, in association withrenowned DY Patil Group, announced thelaunch of India's unique institution for

Automotive Studies - the DYP - DC Centre forAutomotive Research and Studies at the AutoExpo 2010 in New Delhi.

from DYP DC Center for Automotive Research and





from DYP-DC Center for Automotive Research andStudies designed specially by Mr. Dilip Chhabria. Thecar is an audacious mid-engine concept purportedlyto generate a new segment where a SUV need not

be boxy and rugged but sexy and sensual. It is avisual treat whose goal is to spawn a new designdirection and segment.



Toyota Kirloskar MotorPvt. Ltd. (TKM)launched the latestgeneration of theToyota Prius in India

at the Auto Expo2010 that isunderway in NewDelhi. To furtheremphasise Toyota's

commitment to theenvironment, the

Toyota Altis CNGwas also launched,and the Toyota

Innova CNG and To ota Camr H brid



Toyota PriusStaying true to the meaning of its name, i.e.

'to go before,' in Latin, the Toyota Priustoday is the most successful hybrid in theworld with cumulative sales of nearly 1.5million.

Equipped with the latest of its pioneeringtechnology - the Toyota Hybrid System II(also called Hybrid Synergy Drive), andwith one of the best aerodynamic

performances, the Prius has achievedworld-leading fuel efficiency. The Third-generation Prius comes with three drivingmodes - Power Mode, Eco Mode and EV(Electric Vehicle) Mode, as well as a host of dynamic features that combine to give



safety standards as approved by governmentauthorized agencies and its features include aSequential Type Gas Injection Technology, integratedmounting with engine cylinder head and ECU withSpark Timing Advance Processor for better fuelefficiency & lower emissions.



GM India launched themuch awaitedChevrolet Beat, thenext offering from the300 series after theChevrolet Cruze, at a

ceremony presidedover by its President &Managing Director, Mr.Karl Slym. Based onGM's global mini-vehicle architecture,

the experts took 27months to developthe Beat. Chevrolet Beat will be launchedin over 150 marketsaround the worldincluding those inEurope, other parts of



Hyundai - the Koreanauto giant is set tomake public theelectric version of its

compact car 'i10'. Theannouncement wouldbe made at theupcoming Auto Expo

to be held in Delhi.Hyundai will alsodisplay the existingrange of products andvehicles with afuturistic technology



Hyundai Motor India Ltd states "Hyundaii10 Electric is a zero-emission vehicle thatreconciles motoring with theenvironmental aspirations of customers

looking for a vehicle with the best possibleecological footprint." It also added"Hyundai Motor India's pavilion will alsodisplay its futuristic technology in the form

of concept vehicles to highlight thesuperior and advanced technology that thecompany has pioneered."



Auto giant Maruti Suzuki, is set tolaunch Eeco - abrand new family

car. The car iscrafted by a teamof designers fromMSIL who have

worked on theproject for 3 years.Maruti Suzuki Eecois slated to be thenew replacementof Maruti Versa.



Speaking about the proposed launch, Mr. IV Rao,

MSIL Managing Executive Officer said "Thenew car represents the growing expertise of our engineers to conceive, design and producevehicles here. This is also in line with parentSuzuki Corp's vision of turning India into aglobal hub for small car research anddevelopment."

Eeco would be equipped with a 1,200 cc petrolengine. The car is likely to be priced below

rupees 4 lakh. Designed specifically for thedomestic market, the all new Maruti SuzukiEeco would car will have three-row and two-row seating arrangements that would seat 5 or7 passengers. MSIL engineers have beenworking on the model for the last three years



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