The European Car Industry

Andrew RoganTiffany BentleyChris Murphey

Outline

• Leading World Manufacturers

• Sales and Production

• Marketing Strategies

• Effect of War

Leading World Manufacturers

1. General Motors

2. Ford

3. Volkswagen

4. Toyota

5. Daimler-Chrysler

Leading European ManufacturersVolkswagen

• Golf• EuroVan• Jetta• Jetta Wagon

• New Beetle• Passat• Passat Wagon

Leading European ManufacturersVolkswagen

• Phaeton

• 12-cylinder engine making 414 horsepower

• $55,000 Europe• $75,000 US

Leading European ManufacturersVolkswagen

• Touareg

• 13.6% increase in SUV sale

• Combines luxury with offroad

Leading European Manufacturers Mercedes

• C• E• S• CLK• CL

• SL• M• N

Leading European Manufacturers Mercedes

• Offer a wide variety of cars and trucks

• $24,000-$1 million

• New diesel car

• 30% better gas mil.

• Better for environment

Leading European Manufacturers Porsche

• 911• Boxter• Cayenne• Carrera GT

Leading European Manufacturers Porsche

• “Porsche is on the upswing”

• Offer the new Cayenne SUV

• Resale value only drops 23% after 2 years

Sales (world)

Sales (world)

Production (world)

Production (world)

North American Production by Manufacturer (000) units

2001 2002 2003 2004BMW 120 126 161 165

Daimler-Chrysler 2,873 2,940 2,796 2,775

Ford 4,051 4,169 3,906 3,869

GM 5,061 5,446 5,117 4,947

VW 381 340 307 320

European Production by Manufacturer (000) units

2001 2002 2003 2004BMW 776 883 874 980

Daimler-Chrysler 1,632 1,591 1,546 1,626

Ford 2,174 2,104 2,218 2,359

GM 1,804 1,951 1,804 1,896

VW 3,737 3,474 3,388 3,538

Sales (Europe)

Sales (Europe)

Production (Europe)

Production (Europe)

Focus on Domination

• Ford counted about 228,000 Focuses sold from December through April in about 60 countries.

• About 24,000 more than the previous top-selling car, the Volkswagen Golf.

European View

American View

Marketing

• During the upfront season, advertisers bid for and secure time on shows.

• Some hot programs, such as "American Idol," can command as much as $1 million for a 30-second spot.

Marketing (cont.)• Broadcast network TV is still the highest

advertising venue although the impact of TV is declining.

• TiVo is up and coming, with Porsche and Acura as the newest automotive companies to advertise.

• Though GM is TV's biggest customer, the company continues to look at ways other than TV to reach consumers and is beginning to put more marketing dollars into other media, such as the Internet.

Marketing & The War

• Mercedes-Benz USA LLC had immediately pulled all advertising that it could, excluding high-profile media commitments.

• They will soon resume regional commercials but not during war coverage.

• GM, the Chrysler Group and Porsche Cars North America Inc. have not changed their media schedules throughout the war.

• Ford Motor Co. and the Toyota and Lexus divisions continue to advertise, but not during news coverage.

Effects of War• Improving the fuel economy of SUVs and other

light trucks has become a contentious issue among environmental groups, especially given the war with Iraq.

• US auto sales overall recently fell for the third consecutive month in March, although it was less than what was expected among the war and economic uncertainty.

Effects of War (cont.)

• The German opposition to the war with Iraq is having very little, if any, effect on the willingness of Americans to buy German vehicles.

• Relief that the US market had held up relatively well boosted car stocks across Europe.

Our References:

• Autoindustry.com • Automotive News• Automotive News Europe• Detroit Free Press• Wardsauto.com

Conclusion

• Europe has a strong impact in the car industry not only locally but globally with the United States trailing in a close second.