 The automotive industry is one of the most vital forces in our global economy  The global automotive industry grew by 21% in 2010  The industry is valued at $1,184.6 billon  Projected to grow by 38.6% by 2012

 Profits have mainly suffered do to the global recession and energy concerns  Car’s must now not only look stylish, but provide good gas mileage and be good for the environment  Car companies had to revamp their lineup to meet the standards of our new global taste: Style, Reliability, Eco- friendly, & Gas-friendly

 The U.S automobile industry is a 493 billion dollar industry.  Light Car Sales in the U.S › 16.1 million units in 2007 › 13.2 million units in 2008 › 10.4 million units in 2009 › 12 million (expected) units in 2010 › 14.3 million units in 2012

 The global automotive industry is very competitive  Style, Quality, & Cost are major factors

 The USA accounts for 1/5 of the global market share  China and India and other emerging countries will be seeking new cars in the future

 Due to the global recession many auto companies have been struggling  To help boost sales many companies have to differentiate there products  Prices incentives, stylish looks, and impact on the global environment affect consumers decisions

 The automotive industry is a maturing industry  Most companies use product differentiation as their main strategy

 The issue with many companies is the rising cost of raw materials  Metals, Leather, etc.  This leads to a higher price for consumers  Inflation and the job market are going to be major factors for consumers

 There are so many automakers to suit the taste of many consumers  Whether you want a fuel-efficient car or a luxury there is a brand for you

 Buyers have become very smart when shopping for cars with the advent of the internet  The taste’s of buyers have changed from the 90’s when big bulky cars where in  Now most consumers prefer small eco- friendly vehicles.

 Entry into the automobile business is very tough  The market is very saturated  The only notable companies to make a dent is Hyundai and Kia from Korea  These two companies crept their way into the market by foregoing a cost leadership strategy

 Gas Prices  Raw Materials: Metals, Glass, etc.  Government Incentives  IPod & GPS

 Key Drivers of industry change: › Reducing the carbon footprint  Future Profits  Industry Attractiveness

 Although The global economy is suffering, the auto industry is growing  The global population will grow to 7 billion people  One day each one of them may want to buy a car  Emerging countries with growing economies will seek mobile workers who need cars to get form point A to point B