4. Current Headlines
“Business as usual is dead in Detroit”
Detroit News; 9/16/2006
“Ford to Cut 14 Plants And Up to 30,000 Jobs”
Washington Post; 1/24/2006
“Dana follows auto parts peers into bancruptcy”
Wall Street Journal; 3/6/2006
“Toyota boosts overseas output to 5M”
Associated Press; 9/17/2006
“GM to Close 12 North American Sites, Cut 30,000 Jobs”
Bloomberg; 11/21/2005
“Oil prices rise above $60 on OPEC plan”
Associated Press; 10/16/2006
“Chinese plan to import cars to US”
Associated Press; 9/1/2005
5. Middle Market Squeeze
Mercedes S-Class
BMW 7 Series
Lexus LS
BMW 5 Series
Lexus ES
Mercedes E-Class
Hyundai Centenial
Hyundai Grandeur
Mercedes C-Class
BMW 3 Series
Lexus IS
Hyundai Sonata
Mercedes B-Class
Toyota Avalon
BMW 1 Series
Hyundai Elantra
Mercedes A-Class
Toyota Camry
Hyundai Accent
Toyota Corolla
6. Market Fragmentation
Total Number of Models Offered in US Market
350
Existing Model
New Model
300
250
200
150
100
50
0
2000
2001
2002
2003
2004
2005
2006
2007E
2008E
8. Quality Gap Diminishing
3500
Hyundai
Defects Per 1000 Vehicles
3000
2500
Range = 0.5 defects
per vehicle
DCX
Ford
GM
2000
Toyota
1500
Honda
1000
Range = 2 x defects
per vehicle
500
0
2001
2002
2003
2004
2005
2006
12. Customer Focus
1908 Touring Car
1920 Coupe
1912 Roadster
1924 Fordor Sedan
“If I had asked what my customers
wanted, they would have said a faster
horse…”
–Henry Ford
Getting at the “Un-met and Un-articulated Needs”
13. Enfoque estrategico
Brand Value & Design Leadership
Timex
Seiko
Patek Phillipe
$30
$300
$30,000
Cual de ellos da un mejor tiempo?
49. Summary
How to play a high margin game in
a low price market?
Develop a Profound Understanding of
Customers
Create Clear and Distinct Brand Positioning
Achieve Design Leadership
Fix Structural Business Issues