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Automobile Industry and Economic Indicators
Presented by:Presented by:
Stacy Hunt, Nadege Lewis, Jessica Rodriguez, Stacy Hunt, Nadege Lewis, Jessica Rodriguez, Lina Rodriguez, Ed Simone, Esther VenturaLina Rodriguez, Ed Simone, Esther Ventura
Automobile Industry
Agenda
• Esther – Industry and the GDP• Jessica – Inflation Rates• Lina – Market Volume• Stacy – Market Value• Ed – Unemployment Rate• Nadege – Market Segmentation
Brief History
• 1885: Damier and Benz• 1893-1895: Charles E. & J. Frank
Duryea • 1800-1900: Europe• After 1900: United States• 1901: Texas’ oil
fields/Oldsmobile• 1913: Henry Ford
Gross Domestic Product (GDP)
• Millions of Vehicles
Year
6.0
10.0
14.0
8.0
12.0
16.0
2.04.0
19961998 2000 200
2
11
.8
12
.0
12
.8
12
.3
Inflation Rates
• Inflation Jumps, Car Prices Fall• The core inflation rate edged up by
0.1 in July. This price category was helped in July by a 1% drop in new car prices, the biggest decline since January 1975.
• Retail sales rose by 1.8%, the best showing in three months
• Auto sales by up 6.7%• Excluding autos, retail sales were
up a smaller 0.3% in July.
Market Volume
Year Units Million % Growth
2001 57.1
2002 57.2 0.20%
2003 58.4 2.10%
2004 60.5 3.70%
2005 63.1 4.30%
CAGR, 2001-2005: 2.6%
Increased from 2001-2005
Market Value
• What is the current state of the automobile industry’s market value?
• To what factors do we contribute their rise or fall to?
• Will we be continuing on this track in the future or is there evidence to suspect a change?
• The United States new cars market grew by 1.8% in 2004 to reach a value of $202 billion.
211
206.1
201.3
198.5
202
192
194
196
198
200
202
204
206
208
210
212
$ Bi
llion
s
2000 2001 2002 2003 2004
United States Market Value
Market Value
• The global automobiles industry grew by 5.4% in 2005 to reach a value of $1,161.2 billion.
1003.51017.1
1050.4
1101.7
1161.2
900
950
1000
1050
1100
1150
1200
$ B
illio
ns
2001 2002 2003 2004 2005
Global Market Value
Market Value
Market Value
• Research and Development
• Cleaner, safer, and more fuel efficient– E85, 85% Ethanol– Hybrid or Alternate Fuel Vehicles– Diesel and Biodiesel
• Consumer Acceptance of Higher Fuel Costs
Unemployment Rate
• The percentage of the total labor force that is unemployed but actively seeking employment and willing to work
• From 1948 to 2004, the monthly U.S. unemployment rate has ranged between about 2.5% to 10.8%, averaging 5.6%.
• Considered a lagging indicator, confirming but not foreshadowing long-term trends.
• The number of unemployed persons was essentially unchanged for the month of June.
• Unemployment rate holding steady at 4.6%
International Statistics
• Trade is important indicator of state of automotive industry
• U.S. accounts for 25.2% of international new car market
• American car brands accounted for 69% in 1986 & 35% of market share in 2005
• The only increase in American car sales came from large passenger vehicles
http://www.trade.gov/td/auto/domestic/roadahead06.pdf
1990 30.8% 30.3% 75.0%
1995 32.9% 20.7% 55.6%
2000 44.2% 10.0% 54.3%
2005 50.2% 6.5% 60.7%
http://www.trade.gov/td/auto/data/Japan.pdf
Year .
Automotive Deficit
Share of U.S.World Deficit
Share of total U.S Japan Deficit
U.S. Automotive Trade Deficit
Conclusion
• Indicators provide a glimpse into the state of the automotive industry
• Economic standings of consumers bears a strong relationship to automobile manufacturing and sales.
• Global competition greatly affects vehicle production & sales in the U.S.
Reference
• Bureau of Labor Statistics
• Datamonitor
• Trade.gov