Zacks Industry Outlook Highlights: General Motors, Ford Motor, Toyota Motors,
Honda Motor and Nissan Motor
CHICAGO, Feb. 12, 2013
CHICAGO, Feb. 12, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Automobiles, including General Motors Company (NYSE:GM), Ford Motor
Co. (NYSE:F), Toyota Motors Corp. (NYSE:TM), Honda Motor Co. (NYSE:HMC) and
Nissan Motor Co. (OTC:NSANY).
A synopsis of today's Industry Outlook is presented below. The full article
can be read at
The auto industry is highly concentrated. The top 10 global automakers account
for roughly 80% of the worldwide production and nearly 90% of total vehicles
sold in the U.S.
In January 2013, General Motors Company (NYSE: GM) led with an 18.7% market
share in the U.S., followed by Ford Motor Co. (NYSE: F) with a 15.9% market
share, Toyota Motors Corp. (NYSE: TM) with a 15.1% market share, Chrysler-Fiat
with a 11.3% market share, and Honda Motor Co. (NYSE:HMC) and Nissan Motor Co.
(OTC: NSANY) at the last spots with 9.0% and 7.8% market shares, respectively.
Toyota recaptured the sales crown from General Motors by selling 9.75 million
vehicles globally in 2012, which exceeded GM's sales of 9.29 million vehicles.
Toyota's victory can be attributed to its impressive product lineups and
Toyota lost its No.1 position to GM in 2011 after gaining the title from GM in
2008. The loss of crown was driven by declining reputation due to a series of
safety recalls as well as negative impact from natural disasters in Japan and
Thailand in 2011. However, the automaker had vowed to regain the top position
by increasing its dependence on the non-U.S. markets, especially the high
growth emerging markets.
To remain competitive, the automakers will need to design vehicles that will
cater to consumers in both mature and emerging markets while manufacturing
them at low-cost using the most advanced technology.
For example, Ford has undertaken "One Manufacturing" strategy, which aims at
producing multiple models from plants across the world in order to save
production costs and fast adaptation to changes in consumer tastes. The
automaker anticipates producing 4.5 models at each of its plants by 2015, up
from 3.6 models currently.
Further, the automakers are concentrating on offeringmore optional features
(which will save money on gas) even on the small and less gas-guzzler vehicles
in order to attract buyers. The sale of optional features is helping them
offset lower profit margins for small cars relative to large trucks.
The automakers continue to shift their production facilities from high-cost
regions such as North America and the European Union to lower-cost regions
such as China, India and South America. According to a study by CSM Worldwide,
China and South America together are projected to represent more than 50% of
growth in global light vehicle production in the auto industry from 2008 to
The role of governments is highly significant. Governments in all major
countries have become active auto industry players. Their energy and
environmental policies will be strongly responsible in molding the auto
industry in the coming years.
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