General Motors Profile, Ford Profile and Toyota Profile

General Motors Profile

General Motors, headquartered in Detroit USA, is the leading automotive manufacturer in the world. Founded in 1908, it has been the global leader in the automotive industry since 1931. It develops and markets its cars under an array of brand names:  Chevrolet, Pontiac, Buick, Oldsmobile, Cadillac, GMC, Saturn, Hummer, Saab, Opel, Vauxhall and Holden. It operates through a global network of over 260 entities including subsidiaries, joint ventures and affiliates.  In 2003, General Motors sold about 8.6 million cars and trucks representing 14.7 percent of the world vehicle market.

Along with designing, manufacturing and the marketing of vehicles, General Motors has substantial interests in digital communications, financial and insurance services, locomotives and heavy-duty automatic transmissions. General Motors businesses are divided into two broad areas - automotive and other operations and financing and insurance operations.

General Motors Financial Profile

Total revenues and net sales were up in 2003 due to an increase of USD5.2 billion in automotive revenues and a USD2.6 billion increase in revenues from financing and insurance operations.

Despite increased revenues, cost savings and strong equity income in 2003, continued automotive pricing pressures, higher pension and other post-retirement employee benefit expenses in the US (see US auto industry) and unfavorable foreign currency movements all acted to depress the General Motors Automotive net margin from 1.3 percent to 0.3 percent. Table 25 shows the group’s consolidated figures. Purchase full report here.

Ford Profile

Today, Ford is the second biggest car manufacturer in the world automotive industry with brands like Ford, Lincoln, Aston Martin, Mercury, Jaguar, Land Rover and Mazda in its stable. Ford is present in 141 countries with 10,651 dealers worldwide. Its services arm, Ford Credit, is present in 35 countries with 12,500 dealers worldwide. In December 2003, Ford had 327,531 employees on its pay roll globally.

Ford is the second largest passenger car and commercial vehicle manufacturer in the world in terms of value and volume. Ford’s business activities consist of two operating sectors: automotive and financial services. The automotive sector includes design, development, manufacture, sale and service of cars, trucks and service parts, while financial services includes two primary segments, Ford Credit and Hertz. Ford Credit provides vehicle-related financing, leasing, and insurance while Hertz is involved in renting cars, light trucks, industrial and construction equipment.

Ford Financial Profile

Ford primarily generates revenues through the sale of vehicles and financial services. Its automotive sales grew by 3 percent in 2003, but were still lower than the highs recorded in 2000. Overall financial performance improved in 2003. All subsidiaries of Ford performed well in 2003 except Ford North America and Ford Europe (see Europe auto industry). The revenues of the company increased from USD162,256 million in 2002 to USD164,196 million in 2003 due to cost reduction and improved product mix, see table 26. Purchase full report here. In 2003, Ford reduced its costs by over USD3 billion. Cost reduction came from fewer warranty claims, less recalls and customer service actions, as well as savings in manufacturing, engineering and overhead costs. It launched a new model of the Jaguar XJ, which improved sales of the company along with the existing Volvo XC90 and the Land Rover Range models.

Toyota Profile

Toyota has moved from strength to strength, implementing production system and work practices that are unmatched even today. In 2003/4, Toyota sold over 6.7 million vehicles globally. Toyota has manufacturing facilities in 26 countries and regions, a marketing presence in 140 countries and employs about 260,000 people worldwide.

Toyota’s businesses are divided into three broad areas - automotive operations, financial services operations and other business operations

Toyota’s automotive operations stretch from the US and Europe, which account for over 60 percent of its sales, to the emerging markets of India and China (see India auto industry and China auto industry)

Toyota’s financial services business operates in about 27 countries including Japan (see Japan auto industry). Typically, it is found wherever Toyota vehicles are sold. With focus largely on auto loans and leases, Toyota Financial Services provides automobile financing to about 4.8 million customers.

Toyota’s other business operations include information technology and telecommunications, intelligent transport systems, housing, marine, biotechnology and afforestration.

Toyota Financial Profile

Net revenues of JPY17,294,760 million,  for fiscal year 2003-04, were up by 12 percent owing to higher volumes, change in accounting policy and increases in parts and service sales, see table 27. Purchase full report here.
Toyota generated revenue of JPY15,973,826 million from automotive operations in fiscal 2004, up 12 percent. The growth in revenue was due to higher volumes and group-wide restructuring of costs.

Toyota generated revenue of JPY736,852 million from financial services operations in fiscal 2004, up 2 percent. Growth came from higher financings, lower credit losses and valuation income on interest rate swaps.
 
Other businesses posted revenues of JPY896,244 million in fiscal 2004, up 13 percent due to the improved performance of their housing business.

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