For Immediate Release
Chicago, IL – October 17, 2012 – Today, Zacks Equity Research discusses the U.S. Automotive, including General Motors Company (GM - Analyst Report), Ford Motor Co. (F - Analyst Report), Toyota Motors Corp. (TM - Analyst Report), Honda Motor Co. (HMC - Analyst Report) and Nissan Motor Co. (NSANY).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at
The automotive industry is highly concentrated, with the top-10 global automakers accounting for roughly 80% of worldwide production and nearly 90% of total vehicles sold in the U.S.
In the first nine months of 2012, General Motors Company (GM - Analyst Report) led with a 18.1% market share in the U.S., followed by Ford Motor Co. (F - Analyst Report) with a 15.5% market share, Toyota Motors Corp. (TM - Analyst Report) with a 14.4% market share, Chrysler-Fiat with a 11.5% market share, and Honda Motor Co. (HMC - Analyst Report) and Nissan Motor Co. (NSANY) at the last spots with 9.8% and 7.9% market shares, respectively.
Due to a massive structural change after the global economic meltdown in 2008, the global auto industry is expected to be ruled by automakers and suppliers based in the six major auto markets – the U.S., Western Europe, Japan, China, India and Korea.
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.
The recent trend shows that automakers are concentrating on offering more 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 2015.
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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