Honda - Competitors

Honda Competition

Now Viewing Honda's competition in: Automobile Manufacture (primary)

Recent Developments

US Government to Help Big Three - Amid the credit crisis and falling consumer confidence, the Big Three carmakers, GM, Ford, and Chrysler, are looking to the US government for help. Congress recently authorized $25 billion in low interest loans to the Big Three to help them fund development of more efficient cars. The White House has indicated that the finance arms of GM, Ford, and Chrysler may be eligible for help under the $700 billion bailout package aimed at propping up the ailing financial system. The Bush Administration rejected GM's plea for $10 billion to fund its proposed merger with Chrysler.

Auto Sales Continue Steep Decline - October 2008 sales of the US' top 20 selling vehicles dropped 9 percent compared to October 2007. Of the 20 best-selling models, sales increased for only seven; GM's Chevrolet Malibu saw the highest sales with a 39 percent increase. Consumers continued to flee the truck market as sales plummeted for GM, Chrysler, and Ford pickups. Ford F-Series sales dropped 26 percent; Chevy Silverado, 23.6 percent; Dodge Ram, 29.2 percent; and GMC Sierra, 16.9 percent.

Chinese Car Market Loses Ground - US carmakers GM and Ford are suffering from slower sales in China, according to The Wall Street Journal. After years of massive sales growth, 22 percent in 2007 and 25 percent in 2006, Chinese auto sales are dropping as consumer confidence declines amid losses on the Chinese stock market and falling real estate values. GM and Ford counted on gains in China to offset its growing woes in North America and Europe. JD Power & Associates lowered its forecast for 2008 Chinese auto sales growth from 14.5 to 6.7 percent; 2009 sales may be flat or even decline.

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 8 percent between 2008 and 2013.

Motor Vehicle Manufacturing Growth Strengthens

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.