The Global Car Industry in 2004

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : ECOA126 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Case Length : 12 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note : Not Available
Countries : Global
Industry : Automobiles


The car industry occupies a position of strategic importance in many countries. However, with increasing maturity, this industry has stagnated in the USA, Europe and Japan with the average profit margins declining to less than 5% in 2004.

The case discusses the changing dynamics of the car industry in the USA, European, and Japanese markets and the competitive position of various players like General Motors, Ford, Toyota, Honda, and DaimlerChrysler. The case also focuses on the various initiatives launched by the car companies to revitalise and strengthen their position. To retain customer interest, car companies are frequently renewing models.

This is causing market fragmentation. They are also trying to move towards a build-to-order model, which would serve niche segments efficiently. Leading car manufacturers are concentrating on product development and leveraging common platforms to launch new models. New business models that cut costs and improve customer responsiveness are also emerging.


  Page No.
Introduction 1
Background Note 1
The US 2
Europe 4
Japan 5
China 6
Emerging trends 6
The Road Ahead 8
Exhibits 10


Car industry, Global car industry, General Motors, Ford, Toyota, Honda, DaimlerChrysler, USA car industry, European car industry, Japanese car industry, Nissan, Volkswagen, BMW, Luxury cars, Renault, Telematics

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