strategic management in the ailing automobile industry.pdf

426 bmw bmw was founded in 1916 and is known for its

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4.2.6 BMW BMW was founded in 1916 and is known for its performance and luxury vehicles . It owns and produces the Mini brand, and is the parent company of Rolls-Royce. Along with Mercedes, Audi and the other luxury brands, BMW is suffering from the current depressed residual values . They are offering huge discounts and incentives on brand-new products to attract customers, but people prefer to buy a second-hand- car for even less. BMW relied too much on leases. More vehicles from the good times are still waiting to come off lease, and will end up in auctions as owners are usually unlikely to take up the option of purchasing their leases.
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40 Although the Quandt family, owner of a 46 percent stake in BMW, was against the idea of cooperating with Daimler , they are compelled to the cross-ownership, in order to cut costs of parts procurement and technological development. They were already working together in some projects, but now they are more dependent on each other than ever. If the current negotiations will be carried through, this could mean the beginning of deeper common work that can bring advantages for both parties. 4.2.7 Toyota The Japanese carmaker is currently the world’s largest and most profitable automaker . It maintains over 16 percent share of the US market that makes it the second biggest US player. Toyota was the first who mass-produced hybrid vehicles , and has already sold 1.6 million based on 15 models. It had a competitive edge in hybrid technology for more years, but its rivals caught up on the new plug-in technology. Toyota has started to develop electric vehicles, and has established a new battery research division. The company has been also developing clean diesel engines and is planning to launch 18 new models that emit less CO2. They aim to reduce costs and increase their earnings on hybrid vehicles. In 2008 Toyota declared operating loss the first time after 70 years , and requested a loan from the Japanese government. But it is the most unlikely to fail in these hard times. 4.2.8 Suzuki Suzuki is the 11th largest automobile manufacturer in the world. The company’s minicars are very well positioned in Central-Europe . This segment of small, modern, eco-friendly cars are the second-fastest-growing class in Europe. But through the low prices it is even the most fragile. Suzuki’s sales was strongly cut in Europe, as its customers are from the middle class, who are reluctant to purchase new cars in the current crisis, and in most of the cases they can not afford it at all without credit. The car manufacturer announced
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41 that it will cut production in Japan by about 30,000 units due to falling demand. The company was expected to face its first profit drop in eight years for financial year ending in March 2009.
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  • Spring '14
  • Holtsclaw,ChariceL.

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