A COMPARITIVE STUDY

INTO

UNITED STATES

AUTOMOBILE INDUSTRY

Featuring

TOYOTA

VOLKSWAGEN

GENERAL MOTORS

NISSAN

FORD
 A comparative study

on

United States Automobile Industry

featuring

Toyota

Volkswagen

General motors

Nissan

Ford

By

Bharat Reddy
MS (CSE)
Roll No: US207MGH00CSE79
PROJECT SUBMITTED IN PARTIAL FULFILMENT FOR THE
AWARD OF THE DEGREE OF
MASTERS IN SCIENCES
(2014-16)

ABC TEHNOLOGICAL UNIVERSITY

“ABC ENGINEERING COLLEGE FOR WOMEN”
MANHATTAN, NEWYORK,
UNITED STATES OF AMERICA
 TABLE OF CONTENTS

Page Topic

1: Title
2: Name & details
3: TOC
4: Abstract
5: Introduction

6: Toyota Company – Introduction, History

7: Mission, Vision, Org-Chart
8: Organizational work culture and performance
9: Sales Info charts, Region-wise, vehicle wise
10: Influencing factors for Growth and Loss

11: Volkswagen Company – Introduction, History

12: Mission, Vision, Org-Chart
13: Organizational work culture and performance
14: Sales Info charts, Region-wise, vehicle wise
15: Influencing factors for Growth and Loss

16: General Motors – Introduction, History

17: Mission, Vision, Org-Chart
18: Organizational work culture and performance
19: Sales Info charts, Region-wise, vehicle wise
20: Influencing factors for Growth and Loss

21: Nissan Company – Introduction, History

22: Mission, Vision, Org-Chart
23: Organizational work culture and performance
24: Sales Info charts, Region-wise, vehicle wise
25: Influencing factors for Growth and Loss

26: Ford Motors – Introduction, History

27: Mission, Vision, Org-Chart
28: Organizational work culture and performance
29: Sales Info charts, Region-wise, vehicle wise
30: Influencing factors for Growth and Loss

31: Comparison of Company performance -1

32: Comparison of Coempany performance -2
33: Comparison of Company performance -3
34: Summary
35: END
 ABSTRACT

The global implementation of free markets in all commercial and non-commercial

sectors in most of the countries of the world keeps the wealth of the world community

continuously growing of not only developed countries but also undeveloped countries too. It

is a fact today that even communist countries are adopting the capitalism market model and

competing for a share in the global open markets. This resulted in countries developing their

transport facilities, logistics capabilities, marketing avenues, banking services, special

commercial zones and infrastructure. However, a successful commercial adoption requires a

good understanding of the benefits and challenges presented by the global free market

scenarios.

This research study aims to explore the factors that influence the adoption of global

free market strategies and the typical challenges a business is likely to face in implementing

them. My case study was conducted on five titan companies of United States automobile

industry featuring Toyoita, Volkswagen, General motors, Nissan, and Ford. This research

study report explores the technological, organizational and environmental factors that could

influence the automobile giant in technology solutions adoption, organizational efficiency,

commercial advantage, reduction in manufacturing redundancy and performance

enhancements are identified as the key technological factors and complexity, compatibility

and security are found to be the key technological challenges faced by the business. The

factors and challenges identified in the study could be valuable for the planning, designing

and adoption stages of business strategies and implementation process by an automobile

manufacturing company. The study reports could provide the best guidance for business

organizations that are potential automobile manufacturing companies

 INTRODUCTION

The key argument put forward in this study is that global vision can be the primary

lever for competitive edge over the competitors in terms of business strategies, business

models, product brands, product pricing and human resources management. Any company

that seeks to retain its position as a global automobile manufacturing leader status for a long

period in retailing has always used innovative technologies as a aid to maintain its world

dominance.

AMERICAN AUTOMOBILE MARKET:

The world’s vehicle population has surpassed the 1 billion count in the year 2010 and stands

at 1.13 billion count presently. Of all the countries in the world United States of America

stands as the biggest vehicle market with 1 : 1.3 ratio of human to car, the highest human to

car ratio in the world. Since the time automobiles were invented in the world, US has always

retained this first place both in manufacturing sector as well as in transportation sector. The

current automobile production stands at approximately over 340 million units per year. The

automobile manufacturing industry is divided into two sectors which are 1) Cars and 2) Light

transport vehicles (trucks). Cars are further divided based on their size as 1) Small 2) Medium

3) Luxury 4) Large. The three main companies which are the top automobile manufactures in

United States are General Motors with a market share of 17. 4%, followed by Ford with a

market share of 15. 4%, lastly Toyota with a market share of 15. 3%.

WORLD AUTOMOBILE MARKET:

Developing countries like China, India, Brazil are boosting the world’s vehicle population

with China being the second largest vehicle manufacturer and utilize after United States.

American Vehicle manufacturing companies sell their products in the global market too with

Japan and China being the main foreign markets.

TOYOTA Company

Introduction:

Toyota Motor Corporation is a premier Japanese based multinational automotive

manufacturer with its headquarters at Toyota, Aichi, Japan. Toyota Industries was a

Automatic loom manufacturing company. The present company was established by Kiichiro

Toyoda in 1937, as a child company from his father's company Toyota Industries to

manufacture automobiles. Forbes magazine has stated its commercial status as the 13th

largest company in the world by revenue and held Toyota as the world number one

automotive manufacturer position till the year 2012. It employs around 340,000 employees

worldwide and produces more than 10 million vehicles every year. Presently it is the world's

market leader in sales of hybrid electric vehicles (fuel +Electric). Toyota’s Prius family brand

is the world's top selling hybrid car with almost 5.7 million units sold worldwide as of 30

April 2016.(as per financial year end calculations). Presently it stands as the second largest

automotive manufactures and vehicle designer of the United States of America after General

Motors with a yearly sale of 3.4 million vehicles.

Mission Statement:

To attract and attain customers with high-valued products and services and the most

satisfying ownership experience in America.

Vision Statement:

To be the most successful and respected car company in America.

Organizational Culture:

A company’s organizational culture defines the responses of the mangement and employees

to challenges and competition the company faces in the market. As a global leader in the

automobile industry, Toyota uses its organizational culture to maximize human resource

capabilities in innovative designing, team work, problem solving quality checks and secrecy

to support global business success.

a) Team work: Toyota uses teams of workers or managers in all its projects. They are

delegated right from the first phase of the project till the project completion. Toyota

believes that synergy of team work would bring greater success. Every employee of

Toyota has to undergo a mandatory team working and team building training

program.

b) Quality: being a Japanese company Toyota is highly quality conscious of all its

vehicle and products. The Toyota way of manufacturing results in creating quality

products the first time itself instead of rechecking and remanufacturing qualityless

products.

c) Secrecy: being a Japanese company Toyota has ingrained the Japanese culture of

secrecy in all of its company doctrine. This secrecy is however regional and all

matters of American branch of Toyota are settled in America unit itself. It does not

encourage the parent company to get involved in issues of USA branch.

d) Innovative designing is a hallmark Toyota feature that provide maximum value to the

customer. Every employee and manager are trained to be both innovative and quality

conscious in everything they perform for the company. Creativity is the most

rewarded quality in Toyota employee imbursements.

Organizational Chart – Toyota company

Yearly production of vehicles in the American Automobile Industry

SWOT analysis of Toyota Company

Strengths:

Toyota company has established its own manufacturing methodology called “Toyota way”

which ensures high global quality products in the first attempt itself through superior

production system.

Toyota pioneered innovative technologies like Hybrid vehicle in which sector it is now the

world leader

Toyota’s innovative design ensure a wide variety of vehicle models suited \for various

travelling and transportation needs

Toyota is global vehicle manufacturing company due to its quality and innovative products

line.
Weakness:

Toyota has presence and manufacturing units only in Japan and USA. It’s a market leader in

these countries but does not have presence in the lucrative Europe market, Middle east

market, Russian market or BRICS market.

Recall of vehicles due to faulty parts has undermined its\commercial image and dented its

profits

Opportunities:

Very rapidly developing markets of India and China

Fastly developing markets of Middle East, Africa, Brazil, Russia, Argentina etc.,

Hybrid vehicles market

Threats:

Sluggish global economy growth rate hampers the profits of Toyota in developed countries

market
Intensive competition from existing automobile manufactures like General Motors and from

new entrants into Automobile industry like Tesla

Uncertainty in world market due to sudden changes in economic situations.

Financial Data Analysis:

Displayed below is the financial data of Toyota Company for the American branch only:

In Millions of USD (except for per 12 months ending 12 months ending 12 months ending 12 months ending
share items) 2015-12-31 2014-12-31 2013-12-31 2012-12-31
Revenue 149,558.00 144,077.00 146,917.00 133,559.00
Other Revenue, Total - - - -
Total Revenue 149,558.00 144,077.00 146,917.00 133,559.00
Cost of Revenue, Total 126,495.00 127,724.00 123,050.00 116,154.00
Gross Profit 23,063.00 16,353.00 23,867.00 17,405.00
Selling/General/Admin. Expenses, Total 14,999.00 15,716.00 10,850.00 11,529.00
Research & Development - - - -
Depreciation/Amortization - - - -
Interest Expense(Income) - Net
- - - -
Operating
Unusual Expense (Income) -1.00 132.00 18.00 0.00
Other Operating Expenses, Total 417.00 305.00 208.00 77.00
Total Operating Expense 141,910.00 143,877.00 134,126.00 127,760.00
Operating Income 7,648.00 200.00 12,791.00 5,799.00
Interest Income(Expense), Net Non-
- - - -
Operating
Gain (Loss) on Sale of Assets - - - -
Other, Net 959.00 869.00 875.00 709.00
Income Before Tax 10,252.00 1,234.00 14,371.00 7,638.00
Income After Tax 7,371.00 1,230.00 11,946.00 5,612.00
Minority Interest 2.00 1.00 7.00 1.00
Equity In Affiliates - - - -
Net Income Before Extra. Items 7,373.00 1,231.00 11,953.00 5,613.00
Accounting Change - - - -
Discontinued Operations - - - -
Extraordinary Item - - - -
Net Income 7,373.00 1,231.00 11,953.00 5,613.00
Preferred Dividends - - - -
Income Available to Common Excl. Extra
7,373.00 1,231.00 11,953.00 5,613.00
Items
Income Available to Common Incl. Extra
7,373.00 1,231.00 11,953.00 5,613.00
Items
Basic Weighted Average Shares - - - -
Basic EPS Excluding Extraordinary Items- - - -
Basic EPS Including Extraordinary Items - - - -
Dilution Adjustment 0.00 0.00 46.00 48.00
Diluted Weighted Average Shares 4,002.00 3,958.00 4,087.00 4,015.00
Diluted EPS Excluding Extraordinary
1.84 0.31 2.94 1.41
Items
Diluted EPS Including Extraordinary - - - -
 In Millions of USD (except for per 12 months ending 12 months ending 12 months ending 12 months ending
share items) 2015-12-31 2014-12-31 2013-12-31 2012-12-31
Items
Dividends per Share - Common Stock
0.60 0.50 0.40 0.2
Primary Issue
Toyota Global Market share:

Major factors contributing to Toyota success:

1) Great quality of vehicle that assure value for money spent

2) Innovative design of vehicle to fit every transportation and travelling need

3) Toyota has a lineup of 108 models in its car and transport vehicle

4) Rapidly rising demand for Hybrid vehicles in all developed countries due to stringent

pollution control standards.

5) Hegemonic hold of automobile markets of Japan and USA which are world first and

second in vehicle sales.

6) Rapidly increase in demand for domestic cars in India and China as a status symbol

7) Increasing economy of many countries like Middle East emirates, Africa, Russia,

Brazil, Argentine boost Toyota car sales.

8) Fall of petrol and oil prices has also augmented the automobile industry.

9) Pricing structure of Toyota vehicle is very flexible and is augmented by major banks

and credit instructions like Master card, Visa, American express card etc.,
 10) Assurance of Japanese technology, Japanese quality with Japanese service.

VOLKSWAGEN Company

Introduction:

Volkswagen Company is a premier Germany based multinational automotive manufacturer

with its headquarters at Wolfsburg, Germany. It is a subsidiary of its parent company

Volkswagen group.. The present company was established by German Labour Front party in

1937, as a child company from his parent's company Volkswagen Group of Industries to

manufacture economic range automobiles. Forbes magazine has stated its commercial status

as the 61th largest company in the world by revenue and held Volkswagen as the world

number one automotive manufacturer position till the year 2013. It employs around 584,800

employees worldwide and produces more than 10 million vehicles every year. Presently it is

the world's market leader in sales of luxury cars and vehicles. Volkswagen parents company

owns the Luxury car brands like Porche, Audi, Bentley, Lamborghini, Skoda, SEAT, Bugatti

etc., Volkswagen Company’s Bugatti family brand is the world's costliest and fastest top

selling luxury car with almost 409 units sold worldwide as of 30 April 2016.(as per financial

year end calculations). Presently it stands as the first largest automotive manufactures and

vehicle designer of the United States of America with a yearly sale of 3 million vehicles and

global 6.5 million sales of vehicles in the world wide market.

Mission Statement:

The Volkswagen Group's of Industries chief goal is to offer attractive, economic, safe and

environmentally sound vehicles which can compete in an increasingly tough market and set

world standards in their respective class, both for their price and performance

Vision Statement:
To make world a mobile, sustainable place with access to all the citizens.

Organizational Culture:

A company’s organizational culture defines the responses of the mangement and employees

to challenges and competition the company faces in the market. As a global leader in the

automobile industry, Volkswagen Company uses its organizational culture to maximize

human resource capabilities in innovative model designing, team based collaborative work,

stringent quality checks and technological to support global business success.

a) Sense of responsibility: Volkswagen Company’s core corporate principle is its sense

of responsibility to the 1) customer, 2) economics and 3) Society. Not only designing

and producing the worlds best and economic cars, it also provides the world best price

to value ratio and maintains the lowest pollution index for the society benefit.

b) Toyota uses teams of workers or managers in all its projects. They are delegated right

from the first phase of the project till the project completion. Toyota believes that

synergy of team work would bring greater success. Every employee of Toyota has to

undergo a mandatory team working and team building training program.

c) Quality: Being a Germany based company Volkswagen Company is highly quality

conscious of all its vehicles and products. The Volkswagen Company way of

manufacturing “flow channel method” results in creating world class quality vehicles

and products very quickly and efficiently in the most economic ways.

d) Lead by example: being a Germany company Volkswagen Company has ingrained

the German culture of superiority in machine building into its company doctrine. This

policy denotes that Volkswagen Company product should be a world top standard for

all the other vehicle manufacture companies both in performanceand price.It is

continuos recepient of quality awards for its world standard products every year
 e) Continuous development in all spheres of designing, production, workers, technology,

processes, marketing, training and sales are its another hallmark of corporate culture.

Organizational Chart – Volkswagen company

SWOT analysis – Volkswagen company

Strengths:

 Volkswagen Company being a Germany based company has ingrained into itself the

German manufacturing methodology called “Iron and Blood” where synergy between

employees and manufacturing machines ensures high global top quality products

 Volkswagen Company has established a huge network of distribution dealers

worldwide that increases its operational efficiency to a great extent

 Volkswagen Company has established itself well into all emerging markets like Asia,

Africa, Brazil, Argentina etc., to provide a wide variety of vehicle models suited for

various travelling and transportation needs

Weakness:

 Mediocre customer loyalty and weak customer retention program has resulted in very

low sales growth.

 Too much concentration on Europe and USA markets only

 Recall of vehicles due to faulty parts and various legal cases has undermined its

commercial image and dented its profits

Opportunities:
  Very rapidly developing markets of India, Africa, Brazil, Russia and Argentina

 Hybrid vehicles market

 Very high market perception of German technology

Threats:

 Severe competition from other automobile manufacturing companies

 Sluggish global economy growth rate and uncertain political environments in

developed and developing markets

 Exhaustive and deliberating manufacturing standards for prevention of vehicle

pollution.

Major factors contributing to Volkswagen success:

 1) Superior German quality of vehicle that assures long lasting value for cost of the

vehicle.

2) Efficient and ergonomic design of vehicle to fit every transportation and travelling

need of the customer.

3) Toyota has a lineup of 156 models in its car and transport vehicle

4) Hegemonic hold of automobile markets of Europe and USA which are world first and

second in vehicle sales.

5) Rapidly increase in demand for domestic cars in India and China as a status symbol

6) Increasing financial incomes of many countries like Middle East emirates, Africa,

Russia, Brazil, Argentine boosts Toyota car sales as a car is seen as a status symbol.

Financial Data of Volkswagen:

3 months 3 months 3 months 3 months 3 months

In Millions of EUR (except
ending ending ending ending ending
for per share items)
2016-06-30 2016-03-31 2015-12-31 2015-09-30 2015-06-30
Revenue 56,971.00 50,964.00 53,029.00 51,487.00 56,041.00
Other Revenue, Total - - - - -
Total Revenue 56,971.00 50,964.00 53,029.00 51,487.00 56,041.00
Cost of Revenue, Total 45,652.00 40,566.00 45,333.00 45,840.00 44,514.00
Gross Profit 11,319.00 10,398.00 7,696.00 5,647.00 11,527.00
Selling/General/Admin.
7,537.00 6,884.00 9,277.00 7,379.00 7,266.00
Expenses, Total
Research & Development - - - - -
Depreciation/Amortization - - - - -
Interest Expense(Income) -
- - - - -
Net Operating
Unusual Expense (Income) 472.00 100.00 250.00 881.00 138.00
Other Operating Expenses, 1,411.00 -26.00 5,580.00 866.00 631.00
 3 months 3 months 3 months 3 months 3 months
In Millions of EUR (except
ending ending ending ending ending
for per share items)
2016-06-30 2016-03-31 2015-12-31 2015-09-30 2015-06-30
Total
Total Operating Expense 55,072.00 47,524.00 60,440.00 54,966.00 52,549.00
General Motors Company

Introduction:

General Motors Company is a premier United States of America based multinational

automotive manufacturer with its headquarters at Detroit, Michigan, USA. It is a subsidiary

of its parent company General Motors Corporation.. The present company was established by

restructuring the bankrupt General Motors Corporation in 2009, as a child company from his

parent's company General Motors Corporation to manufacture all terrain range of

automobiles. Forbes magazine has stated its commercial status as the 1th largest company in

the world by value and held General Motors Company as the world number one automotive

0manufacturer position for 77 consecutive years till 2007. It employs around 232,800

employees worldwide and produces around 10 million vehicles every year from 400 facilities

worldwide. Presently it is the world's market leader in sales of all terrain cars and transport

vehicles. General Motors Company owns the Luxury car brands like Buick, Cadillac,

Chevrolet, GMC etc., General Motors Company’s Chevrolet family brand is the world's most

fuel efficient car brand with almost 164900 units sold worldwide as of 30 April 2016.(one

Chevy is old every 6. seconds). Presently it stands as the worlds largest automotive

manufactures and vehicle designer of the United States of America with a yearly sale of 3.2

million vehicles and global 9.8 million sales of vehicles in the world wide market.

Mission Statement:
The General Motors Company Group's of Industries chief goal is to “earn customers for

lifetime” by offering them world class quality vehicles in the domains of price, safety,

technology, eco friendly and best fuel to performance ratio

Vision Statement:

To produce cars that are world standards in safety and performance.

Organizational Culture:

A company’s organizational culture defines the responses of the mangement and employees

to challenges and competition the company faces in the market. As a global leader in the

automobile industry, General Motors Company uses its organizational culture to maximize

human resource and technology capabilities in innovative model designing, stringent quality

checks that are world top standard and global business success through customer retention.

a) Safety and quality first: General Motors Company’s core corporate principle is its

application of safety and quality first in all its manufacturing processes. It maintains

existing and innovative world top standards in all domains of its vehicle production

and maintainence..

b) Create lifelong customers: General Motors Company maintains its world number

automotive manufacturer status by applying its second core corporate principle of

creating lifelong customers by providing customers with world top quality vehicles

that are safe and provide best performance in all terrains.

c) Local market productions: General Motors Company market capturing philosophy

involves setting up local production centers in all the high volume markets of the

world that assure better and speedy market penetration. It also makes available all its

designing, manufacturing and testing technology to these countries. Apart from USA

it has manufacturing facilities in countries with China being its main customer.
 d) Lead by example: Being a world titan in automobile manufacturing General Motors

Company has sent world records in innovative eco friendly designs, safety standards,

all terrain drive capability, vehicle manufacturing processes, 4G LTE tehnology,

vehicle performance and price ratio.It has maintained its continuos recepient of

quality awards for its world standard quality products every yearas a proof of its

hallmark corporate culture of providing long term investment protection.

Organizational Chart – General Motors company

SWOT analysis – General Motors company

Strengths:

 General Motors Company has a established worldwide goodwill which ensures that all of

its brands are recognized and bought.

 General Motors Company pioneered the corporate to social responsibility schemes that

has endeared to the governments and public.

 General Motors Company implements unique and novel testing and quality checks

Weakness:

 General Motors Company market share has been declining due to unfocused product line

manufacturing of vehicles.
 Recall of vehicles due to faulty parts has undermined its\commercial image and dented its

profits

 Very high investments in producing SUV’s and transport trucks to cater to the developing

countries market

Opportunities:

 Move the production facilities from USA to India and China to cut costs

 Develop fuel efficient cars for developing markets of Middle East, Africa, Brazil, Russia,

Argentina etc.,

 Expand their manufacturing and distribution centers to all parts of the world for greater

market penetration

Threats:

 Sluggish global economy growth rate augmented with uncertain government policies

especially in the developed countries market

 Intensive competition from existing automobile manufactures like Ford, Volkswagen,

Nissan, Honda and from new entrants into Automobile industry like Tesla Motors

 Uncertainty in world market due to stringent pollution prevention standards.

Major factors contributing to General Motors success:

1) Worldwide best goodwill and corporate image of General Motors and their products. t

2) Vast variety of innovative vehicle models to suitt every transportation and travelling

need

3) General Motors Company has a lineup of 268 models in its car and transport vehicle

4) Rapidly rising demand for Luxury and Hybrid vehicles in all developed countries due

to stringent pollution control standards.

5) Hegemonic hold of automobile markets of China and USA which are world first and

second in vehicle sales markets.

6) Rapidly increase in demand for domestic cars in India and China where the middle

class citizens look at it, as a status symbol

7) Increasing financial earnings of many countries like Middle East emirates, Africa,

Russia, Brazil, Argentine boost General Motors Company car sales.

8) Fall of petrol and oil prices has also further augmented the automobile industry sales.

Financial data of General Motors:

3 months 3 months 3 months 3 months 3 months

In Millions of USD (except
ending ending ending ending ending
for per share items)
2016-06-30 2016-03-31 2015-12-31 2015-09-30 2015-06-30
Revenue 42,372.00 37,265.00 39,621.00 38,843.00 38,180.00
Other Revenue, Total - - - - -
Total Revenue 42,372.00 37,265.00 39,621.00 38,843.00 38,180.00
Cost of Revenue, Total 36,489.00 32,475.00 34,733.00 33,564.00 33,915.00
Gross Profit 5,883.00 4,790.00 4,888.00 5,279.00 4,265.00
 3 months 3 months 3 months 3 months 3 months
In Millions of USD (except
ending ending ending ending ending
for per share items)
2016-06-30 2016-03-31 2015-12-31 2015-09-30 2015-06-30
Selling/General/Admin.
2,847.00 2,818.00 3,029.00 4,282.00 2,977.00
Expenses, Total
Total Operating Expense 39,336.00 35,293.00 37,313.00 37,846.00 36,892.00
Operating Income 3,036.00 1,972.00 2,308.00 997.00 1,288.00
Income Before Tax 3,721.00 2,490.00 3,058.00 1,506.00 1,717.00
Income After Tax 2,850.00 1,931.00 6,226.00 1,341.00 1,140.00
Minority Interest 16.00 22.00 40.00 18.00 -23.00
Net Income 2,866.00 1,953.00 6,266.00 1,359.00 1,117.00

Nissan Motors Company

Introduction:

Nissan Motors Company is a premier Japanese based multinational automotive manufacturer

with its headquarters at Nishi-Ku, Yokahoma, Japan. It is presently a subsidiary of its parent

company Renault Motors Corporation of France which holds 43% stake in Nissan and Nissan

holds 15% stake in Renault. A single CEO “Carlos Ghosn” heading both the companies.

Nissan Motors Company is the world’s first automobile pioneer company dealing with

transport automobile vehicles. The present company was established in 1933 by 3 automobile

engineers who created a brand called Datsun with their surnames. Nissan Motors Corporation

is a world leader in commercial, SUV and transport vehicles domain. Forbes magazine has

stated its commercial status as the 70th largest company in the world by value and held

Nissan Motors Company as the world best automotive transport vehicle manufacturer

position for consecutive years till 2005. It employs around 150,800 employees worldwide and

produces around 5 million vehicles every year from 108 facilities worldwide. Presently it is

the world's market leader in sales of all marine and transport vehicles and is the world’s sixth

largest vehicle manufacturer. Nissan Motors Company owns the Transport vehicle brands

like Datsun, Nissan, Infiniti and a testing brand called Nismo. Nissan Motors Company
Datsun family brand is the world's most sold transport car brand with almost 208490 units

sold worldwide as of 30 April 2016. Presently it stands as the world’s fourth largest

automotive manufactures and world number one transport vehicle manufacturer with a yearly

sale of global 2.4 million sales of vehicles in the world wide market.

Mission and Vision Statement:

The Nissan Motors Company chief mission and Vision states that “power comes within” and

believes that its employees are its core strength and all its success are a result of their team

work efforts and marketing strategies in developing markets like middle east, Africa, India

Organizational Culture:

A company’s organizational culture defines the responses of the mangement and employees

to challenges and competition the company faces in the market. As a global leader in the

transport automobile industry, Nissan Motors Company uses its organizational culture to

maximize human resource utilization and technology capabilities to create innovative hybrid

vehicle model designs, world standard quality checks, cross cultural production tie-ups,

frugal manufacturing processto make it a global business success through customer

satisfaction.

a) Cross cultural tie-ups: Nissan Motors Company’s core corporate principle is its

application of production tie-ups with big volume market countries local automobile

manufacturing companies like like Reanault, Ashok leyland, AutoViz etc., It belives

in the motto of “Diversity is strenght” and shares all its manufacturing, designing and

testing technology with these local country vehicle manufaturingcompanies. This

strategy is the primary cause for its world leader standards in transport domains both

in vehicle production and maintainence..

b) Creative and Innovative vehicle models: Nissan Motors Company being a Japanese

company maintains its world number one transport vehicle manufacturer status by
 applying its second core corporate principle of designing innovative and creative

vehicle model that are frugal and minimalistic in resource utilization but futuristic in

looks. It has a market leadership in hybrid passenger car and marine vehicle design

and has won many global awards for designing them.

c) Local market productions: Nissan Motors Company owing to its low financial

resources implements its third corporate philosophy of setting up local production

centers in all the high volume markets of the world by tying up in joint production

with the local vehicle manufacturing companies, to reduce its production cost.

Organizational Chart – Nissan Motors company

 NISSAN analysis – General Motors company

Strengths:

 Nissan Company has established its own manufacturing methodology called “Nissan

way” which ensures high global quality products through frugal manufacturing processes.

 Nissan Company pioneered innovative technologies like Hybrid, Hydrogen and electric

vehicle in which sector it is now the world leader in design domain

 Nissan Company has a wide distribution and manufacturing network in USA and Asia.

Weakness:

 Nissan Company has severe financial requirements for its operational needs in is into

billions of debt.
 Does not have presence in the lucrative Europe market, Middle east market, Russian

market or BRICS market.

 It is a small company when compared with the world leaders in automobile industry but

increases its presence with tie-ups with local companies.

Opportunities:

 Very rapidly developing markets of India and China both for vehicle sales and

manufacturing facilities.

 Fastly developing markets of Africa, Brazil, Russia, Argentina for vehicle sales.

 Rapidly increasing Hybrid and electric vehicles market

Threats:

 Sluggish global economy growth rate damps the profits of Nissan Company in most of

the developed countries market

 Severe competition from existing automobile manufacturing giants like General Motors

and from new entrants into Automobile industry like Tesla

 Uncertainty in world market due to sudden changes in economic situations and new

legislations on vehicle pollution.

Major factors contributing to Toyota success:

1) Superior Japanese quality of vehicle augmented with French technology that assure

the customer best value for the money spent

2) Very innovative design of vehicle models to fit every transportation and travelling

need of customers.

3) Toyota has a lineup of 58 models in its car and transport vehicle

4) Increasing demand for Hybrid vehicles in all developed countries due to stringent

pollution control standards.

5) Hegemonic hold of passenger automobile markets of Japan and USA which are world

first and second in small car vehicle sales.

6) Rapidly increase in demand for domestic cars for middle class families in India,

China, Middle East emirates, Africa, Russia, Brazil, Argentina as a status symbol.

7) Fall of petrol and oil prices has also augmented the automobile industry.
Financial Data of Nissan Company:

In Millions of JPY 3 months 3 months 3 months 3 months 3 months

(except for per share ending ending ending ending ending 2015-
items) 2016-06-30 2016-03-31 2015-12-31 2015-09-30 06-30
Revenue 2,654,499.00 3,246,493.00 3,009,776.00 3,033,899.00 2,899,351.00
Total Revenue 2,654,499.00 3,246,493.00 3,009,776.00 3,033,899.00 2,899,351.00
Cost of Revenue, Total 2,153,620.00 2,589,601.00 2,422,045.00 2,424,867.00 2,360,485.00
Gross Profit 500,879.00 656,892.00 587,731.00 609,032.00 538,866.00
Selling/General/Admin.
325,049.00 451,150.00 395,171.00 407,770.00 345,152.00
Expenses, Total
Unusual Expense
760.00 113,419.00 5,584.00 14,690.00 2,214.00
(Income)
Total Operating
2,479,429.00 3,154,170.00 2,822,800.00 2,847,327.00 2,707,851.00
Expense
Operating Income 175,070.00 92,323.00 186,976.00 186,572.00 191,500.00
Gain (Loss) on Sale of
442.00 1,869.00 1,078.00 3,404.00 219.00
Assets
Other, Net -1,983.00 53,046.00 -2,015.00 302.00 -1,037.00
Income Before Tax 197,929.00 119,697.00 198,828.00 200,458.00 213,951.00
Income After Tax 143,469.00 81,171.00 137,287.00 178,456.00 155,878.00
Minority Interest -7,092.00 -10,165.00 -10,038.00 -5,667.00 -3,081.00
Net Income Before
136,377.00 71,006.00 127,249.00 172,789.00 152,797.00
Extra. Items
Net Income 136,377.00 71,006.00 127,249.00 172,789.00 152,797.00

Ford Motors Company

Introduction:
Ford Motors Company is a premier United States of America based multinational automotive

manufacturer with its headquarters at Dearborn, a suburb of Detroit, Michigan, USA. It is

world’s first pioneer company dealing with large scale mass production of passenger and

transport vehicles. Ford Motors Company is the world’s first automobile pioneer companies

dealing with large scale human resources management with manufacturing facilities in USA

and Germany. The Germany based company was established to cater to the European market

and survived both the world wars. Ford Motors Corporation is a world leader in commercial,

SUV and luxury vehicles domains. Forbes magazine has stated its commercial status as the

40th largest company in the world by value and held Ford Motors Company as the world best

luxury passenger vehicle manufacturer position for 5 consecutive years till 2008(till Tata

company bought its Land rover and Jaguar brands). It employs around 213,800 employees

worldwide and produces around 5.6 million vehicles every year from 90 manufacturing

facilities worldwide. Presently it is the world's market leader in sales of all luxury and

commercial vehicles . Ford Motors Company owns the commercial and luxury vehicle brands

like Ford, Lincoln, Mustang etc., Ford Motors Company Lincoln brand is the world's most

sold luxury passenger car brand with almost 663,000 units sold worldwide as of 30 April

2016. Presently it stands as the world’s fifth largest automotive manufactures and world

number one passenger vehicle manufacturer with a yearly sale of global 5.4 million sales of

vehicles in the world wide market.

Mission and Vision Statement:

The Ford Motors Company chief mission and Vision states that “People working together as

a lean, global enterprise to make people’s lives better through automotive and mobility

leadership” and believes that its employees are its core strength for all of its success.

Organizational Culture:
A company’s organizational culture defines the responses of the mangement and employees

to challenges and competition the company faces in the global market. As a world leader in

the luxury and commercial automobile industry, Ford Motors Company uses its

organizational culture to maximize its human resource utilization and manufacturing

technology capabilities to create innovative vehicle designs, cross cultural production tie-ups,

lean manufacturing process to sustain it’s global business leadership position in production

process and customer satisfaction. Ford’s organizational culture is defined by the company’s

One Ford plan, the following are its main characteristics of Ford’s corporate culture:

 F: Foster Functional and Technical Excellence – to achieve its goal of industry

leadership Ford company tarins its employees to deliver functional excellence

everytime by using technically innovative tools, startegies, methodologies and

techniques in both manufacturing and maintenance domains.

 O: Own Working Together – Ford Company believes in the adage of “One Company,

One team”. Every company has a single goal, that is “Industry leadership”. Ford

Company belives that team work delivers it and trains all of its workers in both

technical and personality development methodologies.

 R: Role Model Ford Values – Ford Company believes that the same values that

sustained it world leadership in Automobile manufacturing industry through two

world wars and the great depression must me inculated in all employees and

manufacturing process. These values are vision, technical excellence, functional

excellence, integrity and teamwork

 D: Deliver Results- Ford Company its core values will maintain its unprecedented

global leadership while the technical and functional excellence of its employees and

manufacturing will deliver results that will stand as world standards for the industry.
Organizational Chart – Ford Motors company
 SWOT analysis – Ford Motors company

Strengths:
 Ford Company has pioneered its own manufacturing methodology called “Ford way”

which ensures high global quality products in the least production time.

 Ford Company pioneered many innovative transport technologies like all terrain vehicle,

Air conditioning, Musical systems, Car radio etc.,

 Ford Company is a global known vehicle manufacturing company due to its goodwill and

innovative world class quality products line.

Weakness:

 Ford Company has market presence and manufacturing units mostly in USA and China

only. It is a market leader in these countries but does not have presence in the lucrative

Europe market, Middle east market, Russian market or BRICS market.

 Recall of vehicles due to faulty parts has undermined its\commercial image and dented its

profits

 Fuel to mileage ratio as well as the safety standards are very low compared to other

companies.

Opportunities:

 Very rapidly developing markets of India and China, Middle East, Africa, Brazil, Russia,

Argentina etc.,

 Increasing demand for Hybrid and electric vehicles market.

Threats:

 Retarded global economy growth rate decreases the profits of Ford Company in its

developed countries market

 Intensive competition from existing automobile manufacturing giants like General Motors

and even from new entrants into Automobile industry like Tesla

 Uncertainty in world market due to rapid changes in economic situations and rising debt.
Major factors contributing to Toyota success:

1) Superior American quality of vehicle that assure value for money spent

2) Vehicles designed innovatively to perform every transportation and travelling need

3) Ford Company has a lineup of 238 models in its car and transport vehicle

4) Continuously increasing demand for Hybrid and electric vehicles in all developed

countries due to stringent pollution control standards.

5) Hegemonic hold of automobile markets of China, Japan and USA which are world

first, second and third in vehicle sales.

6) Gradually increase in demand for domestic cars in India and China as a status symbol

7) Increasing financial growth of many countries like Middle East emirates, Africa,

Russia, Brazil, Argentine boost Toyota car sales.

8) Huge fall of petrol and oil prices has also augmented the automobile industry growth.

9) Ford Company pricing structure of vehicle is very flexible and is augmented by major

banks and credit instructions like Master card, Visa, American express card etc.,

10) Assurance of American technology, American quality with American service.

Financial data of Ford Company:

3 months 3 months 3 months 3 months 3 months

In Millions of USD (except
ending ending ending ending ending
for per share items)
2016-06-30 2016-03-31 2015-12-31 2015-09-30 2015-06-30
Revenue 39,485.00 37,718.00 40,251.00 38,144.00 37,263.00
Total Revenue 39,485.00 37,718.00 40,251.00 38,144.00 37,263.00
Cost of Revenue, Total 34,606.00 32,341.00 33,852.00 32,085.00 32,071.00
Gross Profit 4,879.00 5,377.00 6,399.00 6,059.00 5,192.00
Selling/General/Admin.
2,661.00 2,562.00 3,941.00 3,731.00 2,544.00
Expenses, Total
Total Operating Expense 37,267.00 34,903.00 37,911.00 35,936.00 34,615.00
Operating Income 2,218.00 2,815.00 2,340.00 2,208.00 2,648.00
Other, Net 184.00 257.00 335.00 218.00 210.00
Income Before Tax 2,875.00 3,651.00 3,120.00 2,859.00 3,286.00
Income After Tax 1,972.00 2,455.00 2,651.00 1,909.00 2,161.00
Minority Interest -2.00 -3.00 4.00 0.00 -1.00
2,160.00
Net Income 1,970.00 2,452.00 2,655.00 1,909.00

Comparision of all Automobile manufacturing companies by global sales figures:

From the existing data we can deduce that General Motors retains its market and industry

leadership by a very huge margin over all of its competitors. The core reason for this

succesfull sales performance are due to its stringent safety standards and fuel to mileage

performance. It has morphed from a failed and debt ridden company to evolve as market titan

in the automobile Industry due to its adherence to the core value of customer satisfaction

through superior standards in safety and performance of its vehicles. The second runner up is

Ford Motors. Both the companies owe most of their success to the american market which is

the world largest vehicle market