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... year, more than three-quarters of its entire fleet of cars, trucks, minivans and sport utility vehicles. Satellite radio, offered by XM and its rival Sirius, offers coast-to-coast listening of mostly commercial-free programmes with a sound quality claimed to be superior to FM. The fledgling services are, however, about to face new competition from digital radio broadcasting which gives car buyers yet another in-car entertainment choice. Service Innovation The competition among auto industry runs like a battle, at the same time when each individual car maker endeavor to lower cost, increase profit and develop new technology, they also come to start on a brand new concept of marketing and service. The four corners service and the ceaseless innovation has become a secret weapon to win target customers and competitive initiation, and it will make car service the most active one among the 3 rd industry, and will as well direct the car service into individuation, systematization, intelligentizing and low cost.
GM operates one of the world's largest and most successful financial services companies, GMAC, which offers automotive, mortgage and business financing and insurance services to customers worldwide. GM's OnStar is the industry leader in vehicle safety, security and information services. GM's other major businesses are Hughes Electronics Corp. , which provides digital television entertainment and satellite-based services, and GM Electro-Motive Division, which manufactures diesel-electric locomotives and commercial diesel engines. GM offers two new credit cards to boost sales GM teamed with Chase Manhattan Bank, a unit of J. P. Morgan Chase & Co.
Inc. , for the GM Business Card, and with Household International Inc. , a unit of HSBC Holdings Plc, for the GM Extended Family Card. General Motors planned to offer two new credit cards; this is to reward users with discounts on new GM vehicles. The new cards do not have limits on how much a holder can earn each year or apply toward a new vehicle. The GM Business Card will be available immediately, and could generate as many as 100, 000 new accounts in the short term and few thousand vehicle sales this year. The vehicle manufacturers use Internet to manage sales E-commerce is having profound effects on the car industry.
Consumers use the Internet to become better informed before making a purchase. Online sites like Autobytel steer millions of car buyers toward specific dealers while the same sites deliver competing bids for cars, insurance and financing in a manner that lowers costs and improves satisfaction among consumers. Meanwhile, auto makers are using the latest in e-commerce methods to manage their supply chains and replenish their inventories. All of big car company have their own web site to sell cars Current Status of The Overall Industry The automobile industry is evolving rapidly on a worldwide basis. Manufacturers are merging, component design and manufacture are now frequently outsourced instead of being created in-house, brands are changing and the giant auto makers are expanding deeper into providing financial services to car buyers. Meanwhile, all of the biggest, most successful firms have become totally global in nature.
At the early age of 21 st century, the world automobile market will present its newer characteristics with the development of world automobile industry and the world economy; the automobile market will be formed into a fresh structure, North America, West Europe and Japan, the 3 major markets penetrate interactively to seek upgrade. North America, West Europe and Japan are the three most developed economic areas which hold the largest automobile sales and capacity in the world. Due to their early market economy taking off, mature market growing, plus the three traditional markets will have to penetrate interactively. Increased trade liberalization will certainly spark the growth of automotive industry particularly in Asia Pacific region, which is critical to future growth of the worldwide auto industry. China's accession into WTO and the implementation of AFTA will definitely intensify the competition amongst the players in this industry. The growth in car population and the automotive manufacturing industry will also stimulate the growth of automotive components and accessories exponentially.
Generally, automakers are optimistic about the future opportunities in Asia Pacific and anticipate that, by the year 2006, vehicle sales in Asia Pacific will grow at a rate greater than that of Europe and North America combined and it is expected that over the next decade, the Asia-Pacific is the region with the highest growth potential and it will remain the most attractive auto market in the world for the long term. China centered Asia Pacific, South America and East Europe, the demand for emerging economic areas increase rapidly. With the economy's continuous developing to Asia-Pacific, South America and East Europe, these 3 areas are growing into big important emerging economic markets. The big 5 car producing countries in the world, US, Japan, Germany, France, Italy all come to look for opportunities of cooperation, invest or establish car plants, and excel selling systems and service networks. Among those developing countries, China is becoming a powerful economy at its fast speed, the auto market is just at the prophase of the stage especially cars (home use), a tremendous potential will turn into an actual demand.
Up to date, all big auto companies world based have found a way to work together with Chinese car companies. Now, GM is a major player in China's growing automotive market. It has about 8. 6 per cent of china's passenger car market, which will total about 1. 1 m vehicles in 2002. And it also has more than 3, 800 employees, three joint ventures and two wholly owned enterprises in China.
Those achievements in China market show that GM had a successful strategy in global expending. They found a new target market, China car market, which has the largest potential in the world. China, with its population of 1. 2 billion people, abundance of natural resources and growing economic vitality, its increasing importance in today's global economy cannot be ignored. From a commercial perspective, China represents an important emerging market for a vast array of products and services. In the case of motor vehicles, China is still a small part of the world vehicle market (about 7 %), but it is projected to account for 25 % of the increase in new global vehicle demand over the next decade. Therefore, influence by prosperous economic environment, China is becoming a new attractive target market for automakers throughout the globe.
GM develops rapidly in China market. In 2002, sales are up more than 40 per cent compared with 2001. The rapid growth in Chinese sales shows that GM do business very well in China, like the chairman of GM, Mr. Murtaugh said, "We are already maxed out on our capacity. We have achieved in five years what a lot of people, a lot of very smart people, thought would take 10 to 15 years. " GM did a series of positive activities to adapt and hold china car market. In 1997, GM has a fifty-fifty joint venture automobile company, with Shanghai Automotive Industry Corporation (SAIC), built Shanghai GM (SGM) 's plant, which consists of vehicle, engine, and transmission assembly operations, as well as a marketing and administration headquarters.
Total investment is about US$ 1. 5 billion. It has an annual capacity through its two shifts a day of 100, 000 cars, a number that the company has already exceeded in sales in 2002. Products manufactured at SGM include a family of four mid-sized sedans, based on the Buick Regal and Century built in the US; the Buick GL 8 executive wagon, also based on a van built in the US; and, the Buick Sail, a compact car based on the Opel Corsa, originally designed and built in Europe. The Sail is China's first compact car intended for the growing middle class.
In cooperation with Chinese partner in SGM, GM established the Pan Asia Technical Automotive Center in 1997. This is a US$ 50 million investment that provides automotive engineering services for its parent companies and other automotive companies not only in China but the Asia-Pacific region. These services include design, development, testing and validation of components and vehicles. The cooperation with Chinese partner help GM developed in China quickly and steadily, especially in technology development. GM also helped China development in other social field. GM established several partnerships and initiatives in China that create benefits beyond those of their direct business.
For example, GM has been an active partner with the Chinese government in addressing current and emerging environmental challenges. This includes a joint research project with the Chinese and US environmental protection agencies to sample air quality and determine primary sources of pollution. In this vein, GM has taken a lead role in advocating the benefits and use of unleaded fuel in China. GM has also partnered with the Chinese regulatory and safety community on research and development of safety and health standards to ensure that the best available technology is used.
Furthermore, GM has sponsored more than a dozen study trips to the US by Chinese government officials on matters of health, safety, and the environment. GM is a geocentric automotive company, all of these decisions and activities in China car market show that GM thinks globally and acts locally, these positive activities lead GM adapt and hold China car market quickly.
Free research essays on topics related to: automobile industry, target market, asia pacific region, automotive industry, auto makers
Research essay sample on Asia Pacific Region Auto Makers
