The car industry is going through some major changes, and some of the best car manufacturers are going to be the ones that are able to take advantage of these changes. In this article, you will learn about some of the companies that are making the biggest strides, as well as some of the big trends that are in the works.
General Motors’ struggle to turn itself around
The world’s largest automaker, General Motors, has been on a downhill trajectory for years. Over the past decade, it has watched key competitors push ahead of it in the global sales race. With little cash on hand, GM is now desperate to obtain government money to stay afloat.
A look at GM’s corporate portfolio reveals a multi-level set of products, including models within brands, markets, and even supply chains. This proliferation of products has negatively impacted the company’s cash flow. In fact, GM has been losing money for decades in various parts of Latin America.
One of the most important components of a portfolio is market focus. Without a market focus, a portfolio will not be able to generate the positive cash flow it needs to thrive. Specifically, a company must have a high market share in a particular segment.
Toyota’s partnership with Honda
The partnership between Toyota and Honda is one of the most significant partnerships in the automotive industry. Both companies set high standards for their partners and they expect to see them meet them. They also expect their partners to help them in their goal of improving profits.
One of the ways Toyota and Honda help suppliers is to establish learning links. They use elaborate systems to monitor their suppliers’ performance. This helps them to ensure that their vendors can meet their goals. For example, Toyota has checklists for …