Bad Times for Toyota: Good Times for Ford

I perhaps do not need to repeat the fact that it is a very bad time for Toyota right now. Toyota is suffering everywhere and in US market it has suffered serious decrease in its sale. Just last year US automakers were suffering from the impact of recession and General Became bankrupt. Government intervention saved GM and many people thought that Toyota would have very good position in US market.

Now, the situation has completely become opposite. Toyota is suffering and US automakers will be able to increase their market share in their home market. It is still not clear that which US car maker will be benefited most from the current crisis of Toyota. The sells figure will be available on this Tuesday and then it will be more clear. Most probably Ford will have significant increase in sales and market share.

The trouble of Toyota will not go away soon and it will take months for Toyota to get back on the current position. 

Ford Looking for a Revival through Small Car Segment

Ford Motor was one of the major car makers who faced a tough condition when economic recession was rife over the last few years. However, the Michigan based car maker is now looking for a revival through its small car segment. From aged people to younger generation all are jumping to small cars, even though economic recession is gradually becoming over.

General users have not got over the affect marked by recession yet. So, the consumer confident is not yet high. Moreover, fuel price hike would also lead car users towards small cars which consume less fuel. Well, I think, Ford should consider hybrid market seriously. Competition is not yet huge in the hybrid car market as Toyota is dominating and Honda is trying to grab a significant chunk of share in the market.

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GM and Ford Saw Increase in October Sales in the US

As the economic recession is almost over, the automobile market in the US is gradually recovering. Leading automakers like General Motors (GM) and Ford experienced year on year increase in October. Though overall sales in October were not very promising, the market was better than the previous month. Chrysler Group, however, could not match the success of fellow automakers like GM and Ford as the company’s October sales were 30% down compared to the same period last year.

Autodata Corp has estimated the total sales of October 2009 at 838,052, just 104 units fewer than the same month of the last year. However, the October sales were 12% up from the total sales volume of September. So, it is pretty much clear that the market is in a recovery process and automakers have a good phase of time ahead of them.

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Wall Street Journal

Ford Trying to Strengthen its Hold in Hybrid Car Market in the US

You know that Hybrid car has been very successful over the last one year in the US mainly because US consumers have become more conscious about fuel economy and environment friendly vehicles. Specially, the economic recession struck heavily in US economy has led people to take hybrid cars very seriously. At the same time, environmentalists have been able to create a consciousness about emission and its impact on environment. Overall, hybrid car market is getting stronger day by day.

You know that Toyota is leading the market with big margin, while fellow Japanese car maker Honda takes the second place in the hybrid car market in the US. However, now it seems that Ford is trying heart and soul to overtake Honda to clinch the second spot in the hybrid market. Ford marked huge growth in its hybrid sales in the first three quarters of the year. The company sold 26,016 hybrid cars in the first three quarters, 73 percent year-on-year increase. For the same period, Honda observed only 8 percent year-on-year growth in the US, selling 29,958 hybrid vehicles in the first nine months of the year.

It is pretty much clear that Honda is going to face some strong challenge from Ford in the near future and there is every possibility Ford could overtake Honda at the second place in the hybrid car market. However, Toyota does not need to worry a lot yet as the Japanese automaker still has a very strong foothold in the hybrid market, but Toyota should remember the fact that hybrid market is still in its infancy and has not been explored fully yet. So, it would continue growing in the years to come. So, other automakers have lot of rooms to grow their share in the hybrid car market.

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Honda is scoring big times in the USA auto market

With the high fuel price, America has become an open field for small fuel efficient cars and Honda has become the big player in this field. The small cars of Honda are now selling very quickly all over the USA. Instead of going for big cars and better performing engines Honda Motor Company Limited (TYO: 7267) focused on its small subcompact cars. Now Honda has got the best performance in the USA auto market. It sales grew up 4.8%. In May, Honda Civic became the top selling vehicle in the USA displacing Ford’s F-Series trucks. According to Jim Hossack, consultant, Auto Pacific Inc. Honda’s products are well tuned with the condition of the current market. They are not offering Super Duty or Suburban but small fuel-efficient vehicles. Det News.com reports:

Honda could sell even more vehicles in the United States if the Japanese automaker shipped more small cars to its American Honda Motor subsidiary. Fit subcompacts are sold within five days of reaching showrooms, said John Mendel, executive vice president at American Honda. But Honda is also scrambling to meet demand in Japan, where the Fit is the best-selling vehicle. "Sixty percent of the world market is small cars. We compete with the rest of the world for the Fit," Mendel said. It gets 27-28 miles per gallon in the city and 33-34 mpg on the highway.

Sales of Honda’s Fit subcompact has increased 64%, Civic 20.5% and Civic hybrid 17.5%. Honda may be doing well in its small vehicles section but its bigger vehicles are not performing well. Though cross over CR-V are quite popular but still, Honda is having a tough time selling its big vehicles. Honda’s midsize Ridgeline pickup, premium Acura are slow sellers but overall Honda cars do not spend much time in dealers lots in the USA now days.

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Det News.com

Toyota lowers its expectation over US automarket

Because of rapid decline in truck sales, the top three American automakers: Ford, GM, and Chrysler are losing market. GM may observe its auto sales falling below 20%. Because of slow economy, falling home values and rising gasoline prices, people are losing interest in buying big trucks and SUVs which are the prominent products of the American automakers. Because of its high quality fuel efficient vehicles, Toyota Motor Corporation (TYO: 7203)may have survived the fall but ultimately the company would not be able to avoid a drop in sales.The top Japanese automaker is now thinking of lowering its US sales forecast. Bloggingstocks.com

Now, the Japanese company is beginning to realize that the US auto picture is so bad that even its quality and fuel-efficiency may have limits when the world's largest market falls into a recession. According to the FT, "Toyota, the world's top-selling carmaker, is considering downgrading its US sales forecast to account for a worsening outlook for pick-up trucks and other big vehicles in its largest market."

Toyota had hoped to sell 2.64 million vehicles in America this year.

The USA is Toyota’s biggest market. Like its rivals, looking at the rising sales in the first quarter, Toyota became very ambitious and invested heavily on its pick-ups and SUVs. As a result, it is now suffering from lower sales. Still, Toyota will be able to pull through this recession for its hight quality products and strong financial condition compared to other automakers.

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Ford, GM, Chrysler are losing market to Honda and Toyota

Honda Motor Company (TYO: 7267) is trying to make a turn around with its hybrid models and this means more loss of market shares for American automakers especially, the famous ‘Detroit Three.’ In 2009, Honda Motor Company is planning to release hybrid models that will cost only$1900 (€1,206). Honda is also planning to bring out the hybrid version of its popular Fit subcompact vehicle. Jesse Toprak, chief industry analyst, Edmunds.com referred Honda’s strategy as a ‘game-changer for the short term’. Currently, Honda has the most fuel-efficient car models in the USA market. The company will sell its new hybrid only cars in USA, Japan, and Europe from next year but it has not determined anything about the Fit subcompact hybrid. International Herald Tribune reports:

In addition to the new model and the Fit, Honda will introduce several other hybrids: a Civic and a new sporty model based on the CR-Z, Fukui said.

Fukui refused to give the price for the new hybrid-only vehicle.

But he said the difference between hybrids and their comparable standard models should be kept within 200,000 yen ($1,900, €1,206), although such price gaps can now reach as much as 500,000 yen ($4,800, €3,047).

"The 200,000 yen difference is a must," Fukui said.

Hybrids deliver a cleaner, more efficient ride by switching between a gas engine and an electric motor at different speeds, and by recycling the energy the car produces as it moves.

Honda aims at selling 200,000 ‘entry-level’ hybrid cars every year. To make the cars cheaper, the company has introduced a new electronic control unit and thinner and more compact battery. It is also developing a thinner motor.

North American car companies are good at making big vehicles like trucks and SUVs. With the rising cost of fuel American people are shifting towards smaller fuel-efficient cars.

Michael Robinet, vice president, Global Forecast Services for CSM Worldwide, an auto industry consulting company in Northville, says that GM and Ford could rely on their European and Asian operations for small car expertise. Chrysler has joined with Nissan to release small cars by 2010. GM is focusing on its larger hybrid vehicles and plug-in car Chevrolet Volt which will be released in 2010. Ford is planning to release midsize hybrids next year.

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Ford Planning to Launch Fiesta compact Car in India

Ford is planning to launch Fiesta compact car in Indian market. Ford Fiesta compact was introduced recently at the Geneva Motor Show. Ford India is seriously planning to make their presence stronger in the domestic market. The U.S. automaker is now interested to grab more market share in India’s emerging auto market. In fact, Ford Motor Company (NYSE:F) is going invest $500 million to enter into the small car segment and Ford is building a flexible engine manufacturing plant by 2010. Ford India President, Michael Boneham, has revealed that the company is now planning to make a global platform which would be part of the company’s India strategy.

Ford does not have a significant share of India’s emerging car market. In fact, India is one of the emerging auto markets across the world. India’s economy is growing fast and has continued doing well for the last few years. So, this is perhaps the best time to invest in Indian market and I think, Ford has taken the right initiative by planning to set up a manufacturing plant in the county.

Related article:
businessweek

Ford Wants to Make India Manufacturing Hub for Engines in Asia Pacific and Africa Region

To take the advantage of India’s low production cost, Ford India is now contemplating to increase its production of engine in India so that the company can offer competitive price for its engines in the global market. In fact, the car maker is going to make India its engine manufacturing hub in the Asia Pacific & Africa (APA) region. Currently, Ford India is producing 60,000 engines per year and the company’s goal is to take it to 2.5 lakh engines per year. It is part of the company’s plan to invest Rs 2,000 crore to increase the annual production of engines and vehicles in India. However, Ford has seen a 19% decline in its sales Indian in FY08. So, Fords has taken Indian market very seriously and Ford India designate president & MD, Michael Boneham, has said that the company is coming with a series of plans increase its sales in the domestic market.

Economic Times reported:
“Ford is changing perspective towards global models. We are looking at ways to make these products part of our India strategy including the new Fiesta, which is part of our global platform of new products. We are aware of the declining sales in India and will soon come out with a series of plans to turn around sales,” Mr Boneham said.

Ford India may introduce its next generation Fiesta compact cars in India. The company wants to produce 2 lakh cars in India by 2010. It is definitely a good initiative taken by Ford. India’s economy is growing and its auto market is also expending rapidly. So, it is perhaps the perfect time to invest in the country. Moreover, cheap production cost will be an advantage for Ford. I think, India will also be beneficial by this move because Ford will have to employ more people to increase its production and thus many people will have employment in India.

General Motors and Ford to Suffer Share Drop

The automotive sector of US will go through a rough patch in 2008 as the auto makers are facing high gasoline prices and the tightness in the credit market. Morgan Stanley 2008 U.S. industry forecast shows that GM and Ford will experience loss this year. General Motors is also facing strike of major suppliers. So, it is almost certain that Auto makers would have a tough time this year.

Guardian reported:

"Our industry view is based on expectations of lukewarm retail demand, weak mix, high raw material prices offset by growing strength in international markets and some progress toward attacking structural issues including overcapacity and legacy costs," Morgan Stanley said in a note to clients.

So, the shares of the companies will also be dropped significantly this year. GM would see 7.6 percent drop, while Ford will experience 8.07 percent drop this year. US economy is in recession which is affecting the automotive market of the country. Now, let us see how the companies like GM and Ford cope up with the situation and go on with their business activities.

Toyota to become the Highest Selling Automaker in 2007

Toyota is going to become leading automakers in terms of its sales volumes this year. So far, Toyota sold more than 70,000 vehicles. However, another Japanese automaker, Mitsubishi has experienced an excellent year with more than 11,000 vehicles sold so far this year. Compared to its sales volume of 18 months ago, Mitsubishi has already made a strong come back this. Mitsubishi has sold more than 6000 vehicle in November. With its new Lancer sedan, Mitsubishi could survive in the market successfully. GM-Holden is expected to take the second place whereas Ford is going to secure the third place in terms of overall sales unit this year.

Herald Sun reported:
But given Mitsubishi's doom-and-gloom outlook just 18 months ago and the poorly selling 380 V6 garnering most of the negative media about the company, its 2007 sales result should please head office in Japan.
Last month Mitsubishi experienced a strong month, with more than 6000 vehicles sold.
Its overall tally for the year is up more than 11,000 vehicles, or more than 20 per cent, over the same period last year.

So, it seems that Toyota and Mitsubishi are making a strong ground for the Japanese brand cars world wide. Now, let us see if GM-Holden, Ford etc. can respond strongly to decrease the domination of Japanese car in the global auto market.

Counterfeit and Pirated Auto Parts: $1 Billion Loss for Ford?

Ford officials have been extremely vocal against counterfeit and pirated auto parts and they have every right to do so. It seems that fake auto parts is depriving the company $1 billion. It is a very bad news to digest. The worst part is that the trade of counterfeit auto parts is increasing at a very rapid face. If this trend continues then sooner or later, fake products will outnumber the real auto parts from real companies.

CBC News reported:

Ford has dispatched undercover investigators to seek out counterfeit and pirated auto parts, a problem that is putting the public's safety at risk and costing about $1 billion US annually, according to the automaker.

"[The cost] doesn't include the health and safety ramifications of fake or faulty items such as auto glass, brakes, tires, suspension and coupling mechanisms, and even seatbelts. Driver safety is simply not quantifiable," Joe Wiegand, Ford's global brand protection manager, says in a study released by the U.S. Chamber of Commerce and the Coalition Against Counterfeiting and Piracy.

Wiegand says a full-time staff has been hired to track fake auto parts within the U.S. The company has also hired independent agencies to investigate outside the country.

Yes, the loss of Ford is too much and this should stop. However, Ford is not the only company suffering from this problem. GM is suffering too.

The Detroit News reported:

General Motors Corp. dedicates significant resources to the problem around the world, but hasn't put a dollar amount on it.

"The counterfeiters are criminals. They don't file financial reports with us," spokesman Tom Henderson said Friday. "It's kind of hard to get an accurate number on this. We know it's significant."

GM has seized more than $250 million in counterfeit auto parts in the past two decades, shutting down hundreds of counterfeiting operations.

Piracy is a major issue in international business. It will take time and determined effort from many governments to put an end to piracy. On the other hand, major companies like Ford and GM should come up with initiatives to make people conscious about health and safety hazards of using counterfeit auto parts.

Flexible Series Hybrid Edge from Ford Motor Co.: Is It Worth it?

This is the age of caring for the environment and reducing fuel emission in the cars. Auto companies are in a rat race to bring out the next big fuel saving and environment friendly car. Ford Motor Co. has done a superb job by introducing Flexible Series Hybrid Edge, the energy efficient car of tomorrow.

Reuters reported:

The concept vehicle -- a modified Ford Edge -- was one of several technologies Ford and other automakers were showing off at the Washington, D.C., auto show intended to highlight their progress in pushing into alternatives to gasoline, including ethanol and clean-burning diesel.

Ford said its Edge was the first drivable hybrid vehicle with batteries that draw power from a hydrogen fuel cell and can be recharged by a conventional electric outlet.

Plug-in vehicles, which have batteries that can be recharged with a standard electrical outlet, have drawn backing from both environmental activists and power utilities since they promise to shift auto-related energy consumption from oil and to the U.S. power grid.

So, you can see that the car is full of goodies and would help us a lot to reduce air pollution. I did not find any information about the price of the product. I hope that the price will be within the reach of most consumers.

Toyota and Ford: In Search of an Alliance

Forming alliance is nothing new in the international corporate world. So, there is nothing shocking in the news that Ford and Toyota are sleeping on the idea of making a serious alliance among the two auto makers. Ford is the second largest American automaker while Toyota is the largest Asian automaker. Toyota is making serious inroads in the American auto industry.

The Cincinnati Post reported:

Part of Toyota's aim in courting Ford is diplomacy - an effort to win what people familiar with Toyota management's thinking describe as political peace from the U.S.'s second-biggest producer of automobiles. Although protectionist rhetoric has abated significantly compared with 15 years ago, Toyota officials remain concerned about a possible backlash as they continue to gain market share in the U.S. while Detroit's Big Three shut factories and ax jobs. Analysts widely expect Toyota to outsell Ford in the U.S. on an annual basis as early as this year.

Toyota also could benefit in a practical way if Ford agreed to use its gasoline-electric hybrid technology. That is in part because Toyota's momentum in establishing its hybrid design as an industry standard has slowed. GM, for instance, has lured German auto makers DaimlerChrysler AG and BMW AG into a powerful alliance to develop a hybrid system of their own that they say is simpler than Toyota's. Other companies, including Honda Motor Co., are trying to go it alone.

Any alliance would likely have some impact on the thousands in this region who work for Toyota and Ford. Toyota operates its largest U.S. plant in Georgetown, Ky., where it is making a hybrid Camry, and its North American manufacturing operations are headquartered in Erlanger. Ford operates two transmission plants here.

It is wrong to think that Toyota alone will be benefited from any alliance between the two automakers. There is something for Ford too. Ford can use the alliance to increase sales in Asia- the traditional strong hold of Toyota.

Who Will buy Daewoo Automobile?

These are not good days for Daewoo Automobile in Romania. The company is struggling to keep its existence. A lot of jobs are at stake. Now, a number of companies are interested to buy the company. GM and Ford both are seriously contemplating on the idea of buying Daewoo Automobile in Romania.

MSN reported:

General Motors and Ford Motor, as well as Chery of China and Tata of India, have submitted letters of intent to buy Romania's troubled Daewoo Automobile, which the country bought back from the bankrupt Korean group last year.

Romania's privatisation authority hopes to select a buyer by June.

Teodor Atanasiu, head of Romania's privatisation Avas, said the buyer would have to guarantee a minimum annual output of 300,000 units. The plant, located in Craiova, about 200km west of Bucharest, employs 4,000 people and has capacity to build 200,000 cars and 300,000 engines a year.

Let us hope for the best. The last thing that Romanian economy needs at this point of time is job losses of so many auto workers.

Living in a R-reg Ford Mondeo Car for Nine Months

Living in a R-reg Ford Mondeo Car for Nine Months

Really, sometimes I feel sympathy for the western people. We in Asia suffer every kind of hardship. Many people live in the street in Asia and it has become a part of everyday life. You go to street in any major city in Asia and you can find hundreds of people living in the street in miserable condition. However, here is a true story of a family in the UK who are living in a car because they have no house.

Image Link: Living in a Car

I found the story in Leeds Today with the title:

Homeless family forced to live in a car

A Leeds family are living in a car after losing their home nine months ago.

The heading is perhaps enough to tell the story. Well, you may wonder that the people are either drug addicted or lazy. No, they are just normal people like you and me. The report stated:

Club singer Daniella Prestwich, daughter Hayley, 12, and partner Duncan Haigh, 29, were made homeless in May and are sleeping out in their R-reg Ford Mondeo. Ms Prestwich, 28, said: "We always find a safe place to park up, cover the windows and have lots of quilts to keep warm. I am 6ft tall, but luckily the car is quite long, so I can just about fit in it."

They stay in public car parks or on quiet residential streets near the homes of friends. She added: "When it is freezing, we put the car heater on which eats up petrol, but we have to keep warm. It can be quite cosy, we have lots of covers, wear thermals and layers and can even make a cuppa with a water heater through the cigarette lighter."

The family have been taken off the priority list for Leeds City Council housing after they refused to accept a run-down property, which they say was not fit for human habitation.

It is a case in which the UK government has failed to deliver its basic duty of protecting its citizens. UK is not a poor country and its government can surely afford to ensure a small but decent house or apartment for this family. The family is suffering all kinds of problems. Because of not having a fixed address, they cannot find steady jobs and they have to go to the houses of different relatives and friends for washing, taking bath or even brushing teeth.

I urge each and every one of you who are reading this post to spread this message over the Internet so that UK officials become more active and help this poor family. Nine months is too much for anyone to stay in a car.