A Research Report on the Change in Global Auto Industry (V)

2.  The strength of mainstream automakers has ups and downs in this change -- some companies rise and others fall

Echoing with the fates of the U.S. Big Three, some global automakers see their strength rising and others falling, which is another crucial feature of the change in the global auto industry, mainly reflected in three aspects. 

First of all, the American brands were most severely hit, and their leadership in the global auto market was completely knocked over. It remains to be seen how the bankruptcy protection will give rise to after-effects and will negatively impact on these automakers' competitiveness.

Secondly, Toyota and other Japanese car companies have also suffered unusual impact. Their profits in the fiscal year of 2008 dropped sharply and their forecasts for 2009 are also mainly losses. Toyota Motor has seen its losses for the first time in the past 74 years and its top executives have been reshuffled. Japanese carmakers have suffered serious internal injuries.

The so-called "internal injuries" refer to the problems hard to be observed or located from the outside. But it is clear that the company's pre-development strategy and management had accumulated these problems which came to break out together in this crisis. Details of the "internal injuries" details are also to be analyzed and solved, including by the Japanese car companies themselves.

Third, Volkswagen Ag (that doesn't rely on the U.S. market) and Hyundai Motor (that operates cleverly in the U.S.) have seized opportunities in the current round of changes and put themselves at the more favorable competitive position. In terms of 2008 year-on-year sales in the world's major markets, Volkswagen and Hyundai sales in the U.S. and European markets did not decline so much as the American and Japanese carmakers, but achieved relatively higher growth in emerging markets.

The online survey of industry professionals shows that the majority of these people are most optimistic about German carmakers, believing that the German companies are likely to have fastest growth in the market share over the next two years, followed by South Korean and Japanese carmakers, while these people are least optimistic about the U.S. automakers and other European automakers.

Based on the above survey and analysis, we believe that in the short term the U.S. automakers, severely hit by the financial crisis, have had their strength weakened and their century-old glory has come to an end; Japanese carmakers suffered internal injuries, with the recovery to take some time, and will curb the momentum of their aggressive expansion strategy in the global market; German and Korean car companies, less affected by financial crisis, can be said to be the beneficiaries of the crisis and are more competitive to achieve rapid development.

(To be continued)

A Research Report on the Change in Global Auto Industry (I)

A Research Report on the Change in Global Auto Industry (II)

A Research Report on the Change in Global Auto Industry (III)

A Research Report on the Change in Global Auto Industry (IV)

A Research Report on the Change in Global Auto Industry (VI)

A Research Report on the Change in Global Auto Industry (VII)

A Research Report on the Change in Global Auto Industry (VIII)

A Research Report on the Change in Global Auto Industry (IX)

A Research Report on the Change in Global Auto Industry (X)

A Research Report on the Change in Global Auto Industry (XI)

A Research Report on the Change in Global Auto Industry (XII)

A Research Report on the Change in Global Auto Industry (XIII)

A Research Report on the Change in Global Auto Industry (XIV)

A Research Report on the Change in Global Auto Industry (XV)

A Research Report on the Change in Global Auto Industry (XVI)

A Research Report on the Change in Global Auto Industry (XVII)