project presentation (1)
TRANSCRIPT
Pakistan Brand of AutomobileGhani Automobile Industries: Automobile Industries is a Pakistani manufacturer of motorcycles based in Lahore. The car and automobile brands in America is very successful and if Pakistan Suzuki will invest in car sector in America it will be also successful.
Ghani Automobile
Ghani Automobile is a collaboration of two industrial groups, Ghani Group of Companies & Chongqing Yingang Science and Technology Group Company Limited, and is a public limited company quoted on the stock exchange in Pakistan. Ghani Automobiles is a company of Ghani Group, and is listed on Stock Exchanges. Established in 2004, the company started its commercial production of the two wheelers during 2005. The head office is in Model Town, Lahore, Pakistan while the plant is situated at 49 km Multan Road.
Future Expectation of Ghani Automobile
Car industry or automobile industry in America is an important part of the American economy
The industry makes a significant contribution to the economies of regional areas through service opportunities and through their quality
The agenda of American car and automobile brands is to provide the best and luxury car for people.
So if Ghani will invest hopefully it would be successful.
Fiat Automobiles Fiat Chrysler Automobile is an Italian-
American multinational automobile manufacturer. It is the world’s seventh-largest auto maker. The group was established in 2014 by merging Fiat S.P.A. into a new holding company incorporated in the Netherland and headquartered in London, UK and primary listing on the New York Stock Exchange and secondary on Borsa Italian.
Performance of Fiat in 2014FCA delivered a strong performance in
2014 with 4.6 million cars sold, and the Jeep brand
achieving records sales of more than one million Cars (when FIAT’s involvement in Chrysler
began Jeep was selling just 337,000 units).
FINANCIAL INVESTMENTS (5.5% of GAV)• Their Financial Investments returned 14.3% on average in
2014.• During the year we slightly reduced their exposure to
single equity names (direct investments• returned +14.1%) and they exited a number of third‐party
funds they were invested in.• Their main investment is in the Black Ant Fund (59.16%
of our financial investments) which• returned +12.7% and its allocation at the end of the year
was 36% in listed equities and equity• options, 40% in credit and 24% in cash.• Their fund investments, excluding Black Ant, were the
best performers with a +20.3% return
Sales Projection of Fiat with Chrysler
2010 2011 2012 2013 2014
35880 59559 83957 86816 96090
599559-35880 / 35880 * 100
83957-59559 / 59559 *100
86816-83957 / 83957 * 100
96090-86816 / 86816 * 100
= 66% 41% 3% 11%
Sales Forecast2015 2016 2017 2018 2019
96090+96090 * 30%
124917+124917 * 30%
162392+162392 * 30%
211110+211110 * 30%
274443+274443 *30 %
=124917 =162392 =211110 =274443 =356776
Cost of sale Projection2010 2011 2012 2013 2014
30716
50704 71474 74570 83146
50704-30716 / 30716 *100
71474-50704 /50704 * 100
74570-71474 /71474 *100
83146-74570/74570 *100
65% 41% 4% 12%
Cost of sale Forecast2015 2016 2017 2018 2019
83146 +86146 * 31%
108921+108921 * 31%
142687+ 142687 *31%
186920+186920 * 31%
244866 +244866 *31%
108921 142687 186920 244866 320774
Cash Flow Schedule (amount in millions)
2014
2015 2016 2017 2018 2019
Initial investment
(530)
Cash flows 15996 19705 24190 29577 36002Exchange Rates
104.7 104.7 104.7 104.7 104.7
Translate Amount
15996/104.7=153
19705/ 104.7=188
24190/104.7 =231
29577/104.7=282
36002 /104.7=344
Discount Rate
10% 10% 10% 10% 10%
Discount Factor
1.1 1.21 1.331 1.4641 1.61051
Present Value
153 / 1.1=139
188 /1.21=155
231 / 1.31=174
282/ 1.46= 193
344/1.61=214
Calculation of Discount Rate•Discount Rate = net income after tax /
Shareholders equity
•Average of Discount rate = 8+11+16+5 / 4 = 10%
2011 2012 2013 2014
1006/ 12260=8.2%
1411 / 13173= 11%
1951 /12584=16%
632/13738=5%
Ford Motors Company Ford is committed to developing great products for
customers around the world. In 2014, they are introducing 23 new vehicles globally.
Ford saw the largest percentage point gain in U.S. market share among automakers in 2013. In addition, Ford F-Series was the best-selling vehicle in the United States for the 32nd year in a row and Ford Focus was the best-selling nameplate in the world.
With the freshest car portfolio in the industry and a commitment to deliver continuous improvement for fuel economy, Ford is well positioned in the global marketplace
Performance in 2014 2014 was a successful step forward in
furthering One Ford plan to deliver profitable growth for all. Despite a challenging environment, particularly in South America and Russia, and an unprecedented number of product launches, the company’s fifth consecutive year of pre-tax profit and positive automotive operating-related cash flow reflects our continued focus on our One Ford plan.
Market Shares in USA Market share represents reported retail
sales of their brands as a percent of total industry sales volume in the relevant market or region. Market share is based, in part, on estimated vehicle registrations; includes medium and heavy trucks.
20 market share was 8.0 percent, 7.8 percent, and 7.9 percent in 2014, 2013, and 2012, respectively. Automotive Segments were reorganized effective January 1, 2014.
Sales projection of Ford Motors company2010 2011 2012 2013 2014
119280 128168 126567 139369 136782
128168- 119280 * 100
126567-128168 * 100
139369- 126567 *100
136782 – 139369 *100
7% (1%) 10% (2%)
Sales forecast of Ford Motors company2015 2016 2017 2018 2019
136782 +136782 * 3.5%
141569 +141569 * 3.5%
146524 +146524 * 3.5%
151652 +151652 *3.5%
156960 +156960 *3.5%
=141569 =146524 =151652 =156960 =162454
Cost of Sales Projection2010 2011 2012 2013 2014
104451 113611 112992 125234 123516
113611 –104451 *100
112992-113611 *100
125234-112992 *100
123516- 125234 *100
9% (0.5%) 11% (1.3%)
Cost of Sales Forecast2015 2016 2017 2018 2019
123516 + 123516 *4.5%
129074 +129074 *4.5%
134882 + 134882 *4.5%
140952+ 140952 *4.5%
147295 +147295 *4.5%
129074 134882 140952 147295 153923
2014
2015 2016 2017 2018 2019
Initial investment
(108)
Cash flows 12495 11642 10700 9665 8531Exchange Rate
104.7 104.7 104.7 104.7 104.7
Translated Amount
12495 /104.7=119
11642/ 104.7=111
10700/104.7= 102
9665?104.7=92
8531/104.7= 81
Discount Rate
52% 52% 52% 52% 52%
Discount Factor
1.52 2.3104 3.5118 5.337 8.113
Present Value
119/1.52= 78
111/2.3104= 48
102/3.511=29
92 /5.33=17
81 /8.113=10
Cash Flow Schedule (amount in millions)
NPV = present Value – Initial Investment
= 182 – 108
= 74
Net Present Value of Ford Motors Company ( amount in millions)
Nissan Motors Company•Since 1999, Nissan has been part of
the Renault–Nissan Alliance, a partnership between Nissan and French automaker Renault. As of 2013, Renault holds a 43.4% voting stake in Nissan, while Nissan holds a 15% non-voting stake in Renault. Carlos Ghosn serves as CEO of both companies.
Market Feasibility•Nissan was the sixth largest automaker in
the world behind Toyota, General Motors, Volkswagen Group, Hyundai Motor Group, and Ford in 2013.
• Taken together, the Renault–Nissan Alliance would be the world’s fourth largest automaker. Nissan is the leading Japanese brand in China, Russia and Mexico
Performance in 2014Nissan's North American sales increase 12
percent in 2014, more than double overall industry performance; market share rises to 9.3 percent, up 0.6 points
North American production rises 21 percent; U.S. production +24 percent; Mexico +18 percent
Smyrna, Tennessee facility becomes the top-producing automotive manufacturing plant in North America through first
Sales Projection of Nissan Motors Company2010 2011 2012 2013 2014
7517277 8773093 9409026 10482520 11375207
8773093-7517277 / 7517277 *100
9409026-8773093 / 8773093 *100
10482520 –9409026 /9409026 *100
11375207-10482520 /1048252*100
=17% 7% 11% 9%
Sales forecast of Nissan Motors Company2015 2016 2017 2018 2019
11375207 +11375207 * 11%
12626480 + 12626480 * 11%
14015393+14015393* 11%
15557086+ 15557086*11%
17268365+ 17268365*11%
= 12626480 = 14015393 15557086 17268365 19167885
Cost of Sale Projection2010 2011 2012 2013 2014
6146219 7155100 7772832 8636063 9241341
7155100- 6146219 * 100
7772832-715100 * 100
8636063- 7772832 * 100
9241341- 8636063 * 100
16% 9% 11% 7%
Cost of Sales Forecast2015 2016 2017 2018 2019
9241341 +9241341 * 10.7%
10230164 +10230164 * 10.7%
11324792 +11324792 * 10.7%
12457271 +12457271 * 10.7%
13790199 +13790199 * 10.7%
=10230164 =11324792 = 12457271 =13790199 = 15265750
Cash Flow Schedule 2014 2015 2016 2017 2018 2019
Initial Investment
(8045-6)
Cash Flows 2396316
2690601
3099815
3478166
39021335
Exchange Rate
104.7 104.7 104.7 104.7 104.7
Translated Amount
2396316/ 104.7= 22887
2690601/ 104.7= 25698
3099815/ 104.7=29607
3478166/104.7=33220
3902135/104.7=37270
Discount Rate
8% 8% 8% 8% 8%
Discount Factor
1.08 1.1664 1.2597 1.3604 1.4693
Present Value
22887 /1.08=21192
25698/1.1664=22032
29607/1.2597=23503
33220/1.3604=24419
37270/1.4693=25361
Net Present Value of NISSAN MOTORS COMPANY•NPV = present Value – Initial Investment
= 116507- 80456
= 36051
Suggestions after calculation
All these analysis of the competitors shows that their net present value is favorable in automobile industry so the Ghani Automobile company has the opportunity to enhance their business by investing in automobile sector in America it will be successful investment into foreign because these companies also working as a leader into industry due to successful sector of Cars and other automobiles.