Audi of America - Competitors

Audi of America Competition

Now Viewing Audi of America's competition in: Automobile Manufacture (primary)

Recent Developments

Demand for Small Cars Continues Rise - </strong>In April 2008 all three major US car makers, GM, Chrysler, and Ford, reported double-digit sales declines. Chrysler suffered the largest hit with a 23 percent drop, GM's sales fell 16 percent, and Ford's revenue was off 12 percent. Some foreign competitors, which tend to offer smaller, more fuel-efficient models, grew sales: Nissan's increased 7 percent; Honda's, 6 percent; and Toyota's, 3 percent.

Billionaire Investor Takes Ford Stake - Billionaire investor Kirk Kerkorian began buying Ford shares in early April 2008; by the end of April he'd amassed a 5 percent stake in the car maker. Kerkorian's ventures into the auto sector include a 2006 plan when he tried to leverage his 10 percent stake in GM to force a three-way alliance between GM, Renault, and Nissan. The plan never came about and Kerkorian eventually sold his GM shares. Kerkorian says that he aims to have a hands-off approach with Ford, citing confidence in its turnaround plan and CEO.

GM CEO Defends Product Pace of Electric Car - </strong>Speaking to the Commonwealth Club of California in April 2008, GM's CEO defended the long lead time for the introduction of the Chevy Volt, a plug-in hybrid vehicle reputed to use no gas if driven fewer than 40 miles per day. Once the gas engine kicks in, the Volt averages about 50 miles per gallon. GM's vice chair and product chief expects the Volt to be available in late 2010.

Competitive Landscape

The major drivers of US demand for autos are employment and interest rates. The profitability of individual companies depends on manufacturing efficiency, product quality, and effective marketing. Large companies manufacture multiple product lines, marketed under different brand names. Smaller companies manufacture a few or single product lines. Large companies have advantages of economy of scale; smaller companies compete by focusing on specialized markets. Due to highly automated manufacturing processes, the average annual revenue per employee is about $1.4 million.

Full Industry Overview For Automobile Manufacture

Automobile Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US motor vehicles manufacturing is forecast to grow at an annual compounded rate of 6.5 percent between 2007 and 2012.

Motor Vehicle Manufacturing Growth Recovers

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.