1. Automotive Industry Kristen Spiller April 9, 2015
Industry Analysis
Automotive Industry
Kristen Spiller
April 9, 2015

2. The Industry: An overview
The automotive industry includes all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel. The leading the manufacturers in the industry are Toyota, Volkswagen, and Daimler (Benz).

3. INDUSTRY DEVELOPMENTS Excess Capacity & Pricing Pressure
Excess capacity and pricing pressure are two of the main causes Affecting the growth of the industry. According to CSM Worldwide, an automotive research firm, in 2004 the estimated automotive industry global production capacity for light vehicles (about 74 million units) significantly exceeded global production of cars and trucks (about 60 million units). Also, Excess capacity, coupled with a production of new products being introduced in key segments by the industry, will keep pressure on manufacturers’ ability to increase prices on their products.

4. CONSUMER MARKET DATA
Daimler class demographic includes adults, mostly middle aged people of both genders. Due to pricing, it is not common amongst the younger generation.
Benz targets rich people, therefore the prices are not low.
They also design cars to fit both the male and female.

5. Competitive LAndscape
• Daimler: (September 1888) LONG ISLAND, NEW YORK
1. Sales: $156.6 B
2. Profits: $9.1 B
• Volkswagen Group: (May 1937) WOLFSBURG, GERMANY
1. Market Value: $119.1 B
2. Sales: $261.6 B
3. Profits: $12.0 B
• Toyota: (April 1963) JAPAN
1. Market Value: $193.5 B
2. Sales: $255.6 B
3. Profits: $18.9 B