State of top 5 Automotive Companies in US -TM, VOW, F, HMC, General Motors

An article by pgupta

There are several automotive companies located around the world, but the biggest provide most of the cars around the world. Naturally, there are three American automotive companies located in the top five, but no American companies take the top spot. These companies all have a long and varied history that has seen good times and bad times.

There are five big companies that provide vehicles to the entire world. Through the past few years, they have seen some good times and bad, and some have had great difficulty in making profits due to changing trends in automotive sales. Here are the top five and how they have done in recent years.

Toyota (TM): The largest automotive company in the world came through the automotive troubles of 2008-09 relatively untroubled. However, this past month the company has had several problems due product recalls that threaten to hurt the company’s amazing growth. The company will lose $2 billion due to product recalls, coupled with the $4.4 billion lost during the financial crisis.
General Motors Company: GM was once the largest company in the world, but it suffered horribly during the financial crisis and had to enter bankruptcy protection. The United States government is now the owner of the company, which saw the loss of 2,000 dealerships and 30,000 employees.
Volkswagen (VOW): The German company is the only European car manufacturer in the top five. Currently, the company sells 6.31 million vehicles, which is 11 percent of the world’s car market.
Ford (F): The creator of the car as we know it, this company has been around for over 100 years but has steadily fallen in the rankings. Things have been very tough for the company these past few years. In 2007, the company lost $12.7 billion and in 2008 the company had to sell its Jaguar and Land Rover line.
Honda (HMC): Honda has been selling fuel-efficient vehicles for years and was therefore not hit as hard as the Big Three automakers and Toyota. Toyota actually saw its sales increase by 20 percent. Of course, the profitability of the company did fall slightly as the economic crisis and the exports of the company have fallen by 64.1 percent.

The big five companies provide most of the vehicles for the rest of the world. These companies have been around for many decades and have seen good times and bad times. In the past three years, due to the changes in how consumers are buying vehicles and what they want, many companies saw huge losses in revenue. Consumers want to have fuel-efficient vehicles, but companies like Ford and GM kept releasing large SUV vehicles. When consumers stopped buying these brands, the companies lost billions of dollars. Look at a company like Honda, which has been ahead of game in terms of what customers want. The other big four companies are starting to catch up now and are changing their lines to be more in line with what customers want.