Posts Tagged ‘Car Manufacturer’
Kia’s Big Step Forward
December 30th, 2009 | 
Author: Correy Putton asked:
Korean car companies have been making waves in the automotive industry, both in the aspects of design and performance. They are carving a niche for themselves in the US and global market. Kia, for example, has been increasing its foothold in the US market, figures last year shows a growth of 6.4%. In December alone, the company sold 30,000 plus units which was the best sales month in the entire existence of the oldest car manufacturer in Korea.
And with the unveiling of their new concept car, the Kia Kue, the company strengthened its name as one serious contender in the crossover SUV market. Riding on radical designs, the genius engineering of Kia parts and other components, and the design of the concept car itself, the company is showing what they can do in terms of designing new and exciting cars.
While some crossover SUVs focus on hauling capability, the Kia Kue puts much attention to the performance of the car. Although it is just a concept car, this shows the direction Kia will be taking in the near future. Providing crossover SUVs with performance enhancing features with the same hauling capacity of an SUV will no doubt impact the financial status of the company and increase its popularity in the market.
The direction in design by which Kia is taking is more probably because of their acquisition of the service of the much-praised Audi designer Peter Schreyer. This concept car is the first output of Schreyer’s California design studio. If this is the sign of things coming from Kia, any other design coming out of that studio will surely be welcomed.
Also announced is the production of the Kia Soul which was also shown during the previous Detroit Motor Show as a concept car. Does this means that we can look forward to a full scale production of the Kia Kue? We can only guess, but if ever this concept car be manufactured for the market, its high quality design and performance level will surely have a lot of buyers.
The Kia Soul, which will be available late 2008 or early 2009 as a 2009 model, was designed in California and would be built entirely on the company’s Korean assembly plant. It is a 5-seater small car aimed at young single males as its buyers. The Kia Soul carries a 2.0 liter 4-cylinder engine with a five speed automatic transmission. Its name refers to the capital of South Korea, Seoul and to soul music.
Kansieo.com
Posted in Automotive | 
Tags: Car Companies, Car Manufacturer, Korean Car, Peter Schreyer | 
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Toyota is America’s 3rd Most Admired Company
Toyota has been enjoying much success in the US. So much successful, in fact, that they are expected to take over the spot occupied currently by General Motors as the world’s largest car manufacturer. The company has been selling cars which has broken record after record for sales. The company’s lineup also includes models that have won different awards. Not only that, they are also the leading producer of the world’s most popular green car, the Toyota Prius.
But Toyota has recently received another feather on their cap. Aside from breaking their sales record for February, the company was also voted as the 3rd “Most Admired” company in the United States. Fortune magazine conducted a survey on 3,332 executives, directors, and securities analysts in order to seek out the ten most admired companies in the country. The winners of this year’s distinction from Fortune magazine are known for their environment-friendly policies.
Toyota fits perfectly in that category since the car maker is one of the frontrunners in the auto industry when it comes to producing green cars. The Prius, the hybrid vehicle from Toyota, has been received warmly by the motoring public. The demand for fuel-efficient cars saw the sales of the Prius reach 100,000 last year. This year, the Toyota Prius remains to be one of the stronger selling models in the Toyota lineup. The Prius’ popularity is emphasized on the fact that it has replaced the Hummer as the vehicle of choice for Hollywood residents.
Aside from the Prius, Toyota’s lineup also features the best selling car in the U.S. since 2002 – the Toyota Camry. The Camry is the best selling car from Toyota and its popularity is still increasing as shown in its rising sales. Lexus, the luxury division of Toyota features the leading luxury car brand in the U.S. for seven straight years. These vehicles show that Toyota has been enjoying much success in the U.S. auto market and the company is still growing in terms of sales of their vehicles. These vehicles are like power antennas which propel the company to newer heights and increase the popularity of the company among different communities.
Toyota also boosts the economy of the country by providing jobs in their plants located in the U.S. Last year, the company produced more than 1.55 million vehicles and 1.4 million engines in their 14 plants in North America. The number of their plants located in the U.S. is still on the verge of increasing since Toyota has announced that they will be starting the construction of another assembly plant in Mississippi. Aside from the jobs generated by these plants, Toyota also indirectly creates hundreds of thousands of jobs.
Posted in Automotive |
Tags: Auto Market, Car Manufacturer, Fuel Efficient Cars, Toyota Prius |
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Chrysler Not Viable, Sixty Days to Save General Motors
Dave Foord asked:
Late last year, Chrysler and General Motors received 17.4 billion Dollars from the US taxpayer to avoid the auto makers being forced into chapter 11 bankruptcy. Three months later, the two companies have failed to secure 21.6 billion in further loans from the American government. A move that now leaves both companies in a perilous predicament.
Chrysler, the smaller of the two companies, has had the most damning condemnation when it comes to its future, with the Auto Task Force appointed by Barak Obama coming to the conclusion that Chrysler is “not viable” in its current form. As a result, Chrysler will get enough working capital to last thirty days, thirty days in which it must conclude its proposed alliance with the European carmaker Fiat. If this merger fails to materialize, the future of Chrysler looks extremely bleak, with Chapter 11 bankruptcy looking like the only option for the third largest automaker in the US.
The news for General Motors isn’t much better, with the one time world’s largest car manufacturer being given sixty days to dramatically restructure and cut costs. A restructuring that has already cost the chief executive Rick Wagoner his job. Forced out at the request of the President because the White House said that the present restructuring plans were insufficient and needed to be far more aggressive if the company is to have any long term future.
Even more worrying for General Motors is the realisation that the government are thinking that a “quick court-supervised restructuring” may prove to be the best option for success. A “court-supervised restructuring” can surely only mean chapter 11 bankruptcy, a move that could decimate any future sales and as a result plunge the company even deeper into the mire. Talk of a Warranty Commitment Plan – government backed warranty schemes for both Chrysler and GM – will do nothing to increase consumer confidence and if anything may have a negative effect. If either company has a viable future, why do they need the government to back up warranties? As was seen in the UK with MG Rover, government backed schemes can effectively speed up the process of failure.
Bankruptcy though, may be the only way GM can survive. Talks with the unions and bondholders have been painfully slow, leading many analysts to think that the only way GM can be restructured is through the courts. With the inevitable backlash that suppliers would feel if either company went bankrupt, hopes are that both companies can meet the demands of the government. A failure to do so will no doubt lead to job losses on a massive scale, job losses that would not just affect GM and Chrysler, but may also drag Ford further into the picture.
So with 30 and sixty days left respectively, Chrysler and GM find themselves in a position where they will have to comply with the Auto Task Force recommendations. Failure to do so can only result in one outcome. An outcome that would have repercussions throughout the world, not just in America.
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March 2007 U.s. Auto Sales Increased
The association of car manufacturers reported that U.S. car sales for the said month increased by 0.8 percent as compared to March of last year. Last month, 1,542,229 new cars have been sold in the United States alone. The said figure is the total sales output of the Big Three and other international car manufacturers doing business in the United States.
Breaking down the figure between U.S. based car manufacturers and international brands, AIADA reported that the international brands are closing in on the Big Three in terms of the U.S. auto market share. Collectively, international brands posted an 8.8 percent increase in sales compared to their total sales for the month of March in 2006.
Currently, the U.S. car manufacturers still control the majority of the U.S. market with 51.6 percent under their belt. Meanwhile, international brands continue their surge by taking 48.4 percent of the U.S. auto market. If the current trend continues, international brands will be on their way to take the majority of the U.S. auto market just like what experts in the industry has projected.
The U.S. auto market is still being dominated by General Motors which is currently the largest car manufacturer in the world. The Michigan based automaker grabbed 22 percent of the U.S. auto market last month. Last year, the Detroit auto giant controlled 23.3 percent of the market. Following General Motors on the leader board is fellow Michigan based Ford Motor Company. The outfit headed by Alan Mulally takes hold of 16 percent of the U.S. auto market.
Close behind FoMoCo is the surging Toyota which now has 15.7 percent of the U.S. auto market. It can be remembered that experts in the auto industry expects the Toyota Motor Corporation to overtake Ford in the U.S. before the end of this year. And by looking at the current market shares of Ford and Toyota it would seem that their prediction will come true and not even a high quality brake from Active Brakes Direct can stop the Japanese brand.
Behind General Motors, FoMoCo, and Toyota is the troubled Chrysler Group. The member of the Big Three takes control of 13.4 percent of the U.S. auto market. The car manufacturer can be remembered to have announced the closing of plants and reducing their workforce. Those steps can lead to further shrinking of their U.S. auto market share. If the Chrysler Group continues their downward slide, it would only be a matter of time before another Asian brand overtakes them.
Honda sits behind Chrysler in the leader board with 9.3 percent of the U.S. auto market. Honda’s rivalry with Toyota can further increase their sales output as they come up with more and more popular models. Another Asian brand follows Honda in the leader board and it is Nissan, the counterpart of Chrysler in the Japanese auto market now has 7.2 percent of the U.S. auto market for the month of March.
By: Anthony Fontanelle
About the Author:
Anthony Fontanelle is a 35-year-old automotive.buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.
April Auto Sales Expected to Show Decrease
Anthony Fontanelle asked:
As the month of April approaches its final days, monthly sales for the month are expected to be posted by car manufacturers. But before the selling days for the month are over, analysts in the auto industry have already predicted that the U.S. auto sales figures for this month will show a reduction as compared to the same month last year.
Experts infer that slow sales for this month will hurt the U.S. Big Three more than it will affect Japanese car brands such as Honda and Toyota. This will surely increase the chances of the Toyota Motor Corporation overtaking the Ford Motor Company in terms of U.S. auto market share. The expected lowers sales for General Motors will also boost Toyota’s bid to become the world’s largest car manufacturer.
The reason cited by industry analysts for declining sales is the continuing trend which sees car buyers turning their back on larger vehicles and focuses more on smaller and more fuel efficient vehicles. It is a known fact that the U.S.’ Big Three are manufacturing large vehicles such as pickups and SUVs. This focus on large vehicles is seen by the car industry experts as Detroit’s downfall.
Recently, Toyota announced their sales figure for the first quarter of the year. as compared to General Motors’ sales output for the same period, Toyota surpassed the current largest car manufacturer in the world. And if the predicted slow sales for larger vehicles prove to be true, Toyota will be one step closer to dethroning General Motors by the end of the year.
Aside from loosing further ground against their Japanese competitors, Ford, General Motors, and Chrysler will also have difficulty setting in motion their restructuring plan. For years now, the three biggest U.S. auto brands are lagging behind Toyota in terms of profitability. Last year alone, Ford recorded their worst year in the company’s lengthy history. Just like Ford, General Motors and Chrysler also suffered from declining sales. In fact, due to its declining sales, the Chrysler Group is now in the auction block as its parent, DaimlerChrysler AG, chose to detach itself from the struggling brand.
Chrysler’s woes have resulted in slashing down jobs at their assembly plants. The company has also announced that they will be shutting down a plant and will reduce the number of shifts in another. Joe Barker, the senior manager of global sales analysis for CSM Worldwide, said that: “It’s a very tough environment out there right now. If you’re undergoing a restructuring at the same time that you’re trying to go after a smaller pool of consumers, it just adds to the complexity of a turnaround plan.” CSM Worldwide is an auto forecasting company.
The recent spike in the prices of gasoline is also seen as a cause of declining sales for this month. For the past couple of years, American motorists have experienced skyrocketing prices of gasoline and this has made car buyers wary about buying another car. In fact, in recent surveys in the United States, it has been found out that the most looked after attribute in a car by prospective car buyers is its fuel economy. This focus on fuel efficiency made gas-electric hybrid vehicles such as the Toyota Prius and the Honda Civic Hybrid popular among car buyers.
Aside from the price of gasoline, experts in the auto industry also pointed out that the increasing adjustable rate mortgages has made consumers think twice about purchasing a new car. But with the increasing production of fuel efficient cars which can be equipped with brake components from Active brakes direct, Toyota and Honda are expected to continue their strong sales output in the coming months and years.
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