Wednesday, September 1, 2010

Automotive Industry - A Global Diversification Approach

The automotive industry today clearly shows that major car manufacturers around the world are trying to stand out big and strong in the global market today. With higher percentage of penetration into the global market only can a major car company succeed in monopolizing the entire industry with their aim, concept, and strategies.
Leading the pack now is Toyota Motor Corporation, which has subsidiaries and other brands such as Lexus, Hino, Scion and Daihatsu. Toyota owns 51% of Daihatsu, meaning that Toyota has the advantage of controlling the popular Japanese compact car ("Kei-car") manufacturer. Having the Lexus as their premium brand with a fast growing sales figure in the European countries, it poses a threat to other European marques as a strong contender in both luxury and super cars. Toyotas can be seen everywhere around the world from its super minis to sedans and pickups. It has been a market icon for affordable and reliable cars. Toyota also recently bought a portion of Fuji Heavy Industries which is the parent company to Subaru with an upcoming joint developed model to be announced soon.
Another strong leader is the Volkswagen group. Being a carmaker based in Germany, it has acquired many other marques such as Audi, Lamborghini, Bentley, SEAT, Scania, and Skoda. Volkswagen AG has now become the largest car company in Germany apart from BMW, Daimler, and Porsche. In fact, Porsche holds a major part of Volkswagen, for both of these companies are in fact a close partner. With the Chinese manufacturing their models of Volkswagen under FAW (First Automobile Works) and Shanghai Volkswagen Automotive, it is clear that everyone wants a piece of the big dragon to see their future standings in China.
Other involvements between companies includes the Suzuki SX4 being a joint developed project of the Japanese company with Italian carmaker FIAT. While naming it FIAT Sedici, we will see both similar models on the streets but Suzuki will market it in the Asian market while FIAT will be selling theirs in the European countries. The same happens to other models like the Peugeot 107, Citroen C1, and Toyota Aygo are actually the same car just that they are marketed in different markets.

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