Automotive Industry and Nissan

From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In

Toyota initially establish in Japan by Sakichi Toyoda. However in 1933 Toyoda company enhance into many field and one of them is automobile industry where it was named as Toyota (Toyotauk, 2013). Today, Toyota able to cross many boundaries and develop their business from plain filed to massive production firms. Toyota currently the global number 1 position after beating General Motors and Volkswagen Group on vehicle sales for 2013 (Gibbs, 2014). According to Gibbs (2014) Japanese firm recorded $9.98 million of sales in 2013. Whereas they have estimated to hit the $10 million mark in 2014. The company operates with approximately 339000 employees in 2014 (The Statistics Portal, 2014). Toyota Motors well known for their innovative

Did you know Nissan has a burgeoning commercial vehicle business? This Japanese automaker with a huge manufacturing and distribution presence in the United States has pickup trucks, vans, and taxis designed with commercial customers in mind. With this division, Nissan has successfully carved out a significant slice of business in a highly competitive segment.

Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.

There are many issues that are currently facing the American Automotive industry, especially in terms of environmental factors. The automotive industry has been around for a very long time, and is a relatively stable industry, but there are still areas where automotive companies need to adapt and if they fail to do so, they will be at a disadvantage against their peers, both here in America and also globally. In this essay I will break down a few of the issues that I believe are plaguing the American Automotive Industry.

Technology is a major influence on the automotive industry today and will be into the future in many ways.

Nissan and Renault are collaborating on building universal platforms, with shared components and where companies lead engine design in their area of expertise. For example, Renault specializes in diesel as well as in innovation and Nissan focuses on gasoline and the manufacturing process. They’ve increased their purchasing power because they buy supplies for twice as much cars (6 millions). Consequently, the alliance has boosted profitability, market capitalization and sales in 192 for both partners (Nancy DuVergne Smith, 2004).

The birth of the worldwide auto industry happened in the US. Cars in some form or another had already existed around the world but they were labor intensive to produce and without a supply the market considered them more of an interesting novelty than a must have product. Henry Ford revolutionized the nascent automobile industry with the development of the assembly line to mass produce the vehicles in the US to sell to the world. Since then the US has been one of the leading countries for the manufacture of automobiles until the 1970’s. Since then there has been a marked increase in global competition which has dropped the US to 3rd in annual production of vehicles for 2014 behind China and the European Union (EU).

Nissan has been able to achieve a competitive advantage using OM. A competitive advantage is “the creation of a unique advantage over competitors” (Heizer et al., 2014), which Nissan has been able to do with the operations function and keeping a focus on flexibility. “In January 2012, Nissan announced that it would increase the localized production of its cars in the America from approximately 70% to 90% by 2015. This displayed a competitive advantage against other automobile manufacturers following the impact of a massive earthquake, a nuclear emergency, and a tsunami. Since financial crises in 2008 had caused higher costs, the company used localized production to lower those costs. Nissan has actually established a competitive

Eighteen months later, Nissan was back in the black, and within several more years it had become the most profitable large automobile company in the world. Ghosn transformed Nissan once again into a powerful global automotive manufacturer. NRP returned the company to profitability, achieving 7.9% operating margin and cut the net automotive debt to the lowest level in the past 24 years.

In 1890 the American auto industry bloomed in the United States leading to hundreds of manufactures. Come 1920’s there were three main auto manufactures known as the “big three” (2015, Wikipedia). Those three manufactures are Ford, General Motors and Chrysler. Global competition started to cut into the American auto market come the 1970s. The international auto market combined with oil prices and economic crisis continue to affect the American auto market. Overall the American auto industry has experienced steady and on occasion harsh drops in the US market while receiving some small gains, however, no gains have brought them back to the hay day they experienced between 1920s and 1950s.

Nissan focuses on maximizing its auto manufacturing operations through flexibility and efficiencies by maintaining a

This report is based on the business analysis conducted of the Nissan Motors and the Japanese automotive industry at the timeGhosn was appointed as CEO in 1999. The analysis of the strengths and weaknesses along with the opportunities and threats to the company are evaluated and it is presented using the SWOT framework. SWOT framework is mainly used for the assessment of the Micro environment of any company and hence it is very useful here. Apart from this assessment, how this company how managed its weaknesses in order to compete in the market is also considered in this report based on its importance in the business analysis. Evaluation of the business objective new vision and mission that Ghosn set for company and how these are incorporated in the business profile is also included in this report.

Tanaka Motor Corporation was founded by the Tanaka family on August 28th 1937. Ever since its’ founding, Tanaka has sought to contribute to a more prosperous society through the manufacturing of automobiles, operating its business with a focus on vehicle production and sales. Tanaka produces cars, hybrids, crossovers, SUV’s, trucks, and minivans. Last year I made history becoming the first American CEO of a Japanese automobile manufacturer. Under my direction we hope to increase sales through globalization and produce safe and environmentally friendly cars. Our ultimate goal is to have zero casualties from traffic accidents this year. Right now we are headquartered just outside of Tokyo and we have 95 subsidiaries throughout Japan. In 2013

The automotive industry is one of the most profitable business sectors on international level. The most important producers can be found in Germany and the U.S., which have the highest number of automakers with tradition on the market. However, Asian automakers have gained some solid market segments in the past decades.