A

Global Country Report

On

Automobile Industry of New Zealand

Submitted to:

Gujarat Technological University (GTU), Ahmedabad

MASTER OF BUSINESS ADMINISTRATION

Guided by:

Prof. Deepali Ahuja

Prepared by:

NensiModi

KhushbooPandey

TrushnaNayak

Raskin Shah

MoizShaikhvala

LalitPrajapati

Institute Certificate

“Certified that this Global Country Study and Report Titled “Automobile Industry in New Zealand”

is the confide work of attached student list with enrollment numbers, who have carried out their

research under my/our supervision. I/We also certify further, that to the best of my knowledge the

work reported herein does not form part of any other project report or dissertation on the basis of

which a degree or award was conferred on an earlier occasion on this or any other candidate. I/we

have also checked the plagiarism extent of this report which is and the separate plagiarism report

in the form of html /pdf file is enclosed with this.

Signature of the Faculty Guide

(Asst. Professor)

(Deepali Ahuja)

Signature of Principal

(HOD)

(Dr. B.K. Nirmal)

DECLARATION

The Global country report entitled “Auto mobile Industry of New Zealand” has

been submitted to Gujarat Technological University, Ahmedabad in partial fulfillment for the award

of degree of Master of Business Administration.

I the undersigned hereby declare that this report has been completed by me under the guidance of

Pro, Deepali Ahuja (Faculty Member, Shayona Institute of Business Management, Ahmedabad)

The report is entirely the result of our own efforts and has not been submitted either in part or whole

to any other institute or university for any degree.

Name of the Student with Signature:

No Name Enrollment no Signature

1 Nensimodi 128200592029

2 Khushboopandey 128200592034

3 TrushnaNayak 128200592030

4 Raskin shah 1282005920

5 Lalitprajapti 1282005920

6 Moiz 1282005920

Date:

Place: Ahmedabad

PREFACE

Being a management student, it is required to understand how industrial analysis is done .Therefore

it is required to identify the industry of one’s interest to conduct a thorough analysis of the selected

industry. This helps the students to develop a sense of awareness regarding the particular industry as

a whole. Such analysis helps to understand the industry and is highly useful for career development.

This global country report contains the information regarding “Automobile Industry of new

Zealand” the data are collected from the various sources like secondary data.

We have gained much practical knowledge by this training in the report presented here, sincere

efforts have been made by us to mentions the knowledge. We have getting during the project.

ACKNOWLEDGEMENT

It is almost inevitable to incur indebtedness to all which generously by sharing their invaluable time

and rich experience with us, without which this project would have never been accomplished.

No task can be achieved alone, particularly while attempting to finish a project of such magnitude.

It took many special people to facilitate it and support it. Hence, I would like to acknowledge all of

their valuable support and convey my humble gratitude to them. I would like to thank PROF,

‘’DEEPALI AHUJA’’ and all other faculties of Shayona Institute of Business management

(SIBM) for their guidance thought out the preparation of the project and for their valued suggestion.

I express my sincere thanks to management of Shayona Institute for giving us this golden

opportunity to works on global country report. The guidance and support provided by them have

really made a learning experience for us .this was full of rich experience, which will definitely help

us on my future career.

Executive summary

Introduction of Automobile Industry in New Zealand

Historically, New Zealand had a highly protected, regulated and subsidized economy. This

stemmed at least partly from trends started in the first half of the 20th century,

when the First Liberal Government and later the First Labour Government introduced social

security systems with, for the time, very wide-ranging scope (from state pensions to unemployment

benefits and free education and health care), while also regulating industry, mandating trade

unionism and industrial arbitration.

Imports were also heavily regulated. While called "welfare statist" by some, it was accepted that

until at least the 1950s both main parties (Labour and National) generally supported this trend, even

though critics pointed to negative effects on the general economy and argued that increasing

emigration could be blamed to a large degree on these policies.

STEEPELED analysis of New Zealand

Social factors

Income distribution

Responsible for the early death of Prime Minister Norman Kirk, who may have survived his various

healths’ Class in New Zealand is a product of both Māori and Western social structures. New

Zealand, a first world country, was traditionally supposed to be a 'classless society' but this claim is

problematic in a number of ways, and has been clearly untrue since at least the 1980s as it has

become easier to distinguish between the wealthy and the underclass.

Education

In this increasingly high-tech world, working with vehicles is a challenging and motivating

career choice. Whether you're a motor mechanic, panel beater or vehicle service or motor body

repair technician, it's vital you learn to know differing, often multipart systems used in motoring

technology, and keep up with the latest development. And that's no tiny feat.

Technological factor

 The 2013 edition of Research and Development Statistics (RDS), released in March, provides a

wide range of recent data on the resources devoted to R&D in all OECD countries and selected non-

member economies.

Industry focus on technological effort

The Labor & Industry Group performs analysis of the automotive industry's employment,

productivity, wages, benefits, education and training, occupations, labor agreements, plant

locations, and capacity utilization, as well as forecasting and modeling employment and market

demand.

The group's research focuses on developing a better understanding of developments in human

resource and education issues and policies, as well as tracking critical industry information and

government data related to the existing automotive endowment, production, global competitiveness,

trade, markets and automotive development in emerging economies.

Energy costs and use

Renewable energy is a socially and politically defined category of energy sources. Renewable

energy is generally defined as energy that comes from resources which are continually replenished

on a human timescale such as sunlight, wind, rain, tides, waves and geothermal heat.

changes in mobile technology

The emergence of mobile communication technologies is spilling over into the automotive industry,

resulting in a dramatic impact on not only vehicle connectivity, but also on how consumers view

transportation as a means of staying connected. Connectivity in the automotive i

Economic factors

New Zealand car industry is small, with annual volumes below 100.000 units. The industry posted

97.000 units in the 2008 before to sharply fall at 67.000 the following year and to recover starting

from 2010. In the 2011 the market was back at 86.000 units and the 2012 started confirming the

growing trend.

Environment factors

The climate is mostly cooling temperate to warm temperate. Mean temperatures range from 8 °C

(46 °F) in the South Island to 16 °C (61 °F) in the North Island.

Carbon food print

The Ministry for the situation publish information yearly about greenhouse gas emissions in New

Zealand. On this page you will find the latest information on New Zealand’s Greenhouse Gas list,

the Net Position, unpaid Greenhouse Gas treatment and emission projections.

Political factors

The Automotive Market Access and Development Strategy is a four year programmed that will

expire in June 2002. The aim of the programmed is to encourage the development of a sustainable,

profitable and internationally competitive automotive manufacturing industry in NZ.

The Strategy was designed to help NZ realize export targets, facilitate greater two-way investment

between NZ and overseas companies, and support greater collaborative activity in design,

engineering, R&D and manufacturing between NZ and overseas companies.

Legal factors

Safety shows must require in vehicle industry.

A safety officer require in each automobile firm.

The registration last for 2 years from the date that the request is made, unless ownership is

renounced, and can be renewed for another for another 2 years each time.

The patents on new plant variety protect new discoveries in the plant world.

Protection last for 25 years, increased to 30 years for vine, tree potato and plants with woody

stems Ethical factors

Corruption

Corruption manifests in different arenas of life in different ways, and can affect the

corporate sector, public sector, individual politicians, political parties and governments.

Transparency International generally defines corruption as "the abuse of entrusted power for

private gain" usually through bribery or kickbacks.

IP

In 2013, it can hardly be doubted that New Zealand and Australia may, for the purposes of

enforcing intellectual property rights, be regarded as one market.” 

STEEPELED Analysis of India

Social factors

Income Distribution

On the canvas of the Indian economy, automotive industry occupies a prominent place. Due to its

deep forward and backward linkages with several key segments of the economy, automotive

industry has a strong multiplier effect and is capable of being the driver of economic growth.

Cars being aspiration products, purchase decisions are influenced by the overall economic

environment.

Increase in per capita income increases the consumption tendency of the customer.

Labor and Social mobility

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adding citations to reliable sources. Un sourced material may be challenged and removed.

Lifestyle changes

Indian Consumer Durable Industry

The Indian Consumer and E-Banking- It; Telecom & Banking Industry -Csfs and

Constraints.

Indian Consumer Behavior.

Technological factors

Internet makes it easy to collect and analyze customer feedback.

With the entry of global companies into the new Zealand market, advance technologies, both

in product and production process have developed.

With the development or evolution of alternate fuels, hybrid cars have made entry into the

market.

Economic factors

In India, automotive is one of the largest industries showing impressive growth over the

years and has been significantly making increasing contribution to overall industrial

development in the country. Presently, India is the world's second largest manufacturer of

two wheelers, fifth largest manufacturer of commercial vehicles as well as largest

manufacturer of tractors. It is the fourth largest passenger car market in Asia as well as a

home to the largest motor cycle manufacturer. Total sales of all auto-mobile companies are

up 44.4% while two-wheeler sales grew by 43.43%.

Environment factors

Natural resources

Energy resources

Nonmetallic resources

Metallic resources

sustainable energy

Source Total Installed Capacity (MW)

Wind Power 19,933.68

Solar Power (SPV) 2,079.97

Small Hydro Power 3,746.75

Biomass Power 1,284.80

Bagasse Cogeneration 2,392.48

Waste to Power 99.08

Total 29,536.76

Political factors

In order to further accelerate and sustain advancements in the auto sector, the department has

undertaken several policy measures and incentives. The most important being the

announcement of the 'Auto Policy' of 2002, which aims to establish a globally competitive

automotive industry in India and double its contribution to the economy by 2010. The policy

seeks to set out the direction of growth for the sector and promote R&D therein so as to

ensure continuous technology up degree as well as building up of better designing capacities.

Legal factors

Auto workers have launched a hunger strike in Manesar, India, starting today, to demand the

release of 147 colleagues, who already spent a year in prison on false charges. Workers and

allies protested throughout the year, including this protest march in January in the state of

Haryana. Photo:

Ethical factors

Corruption

Government Interactions — the auto industry is fast expanding into the BRIC countries

(Brazil, Russia, India, and China), as well as Indonesia and Mexico.  These countries are

risky for corruption, and auto companies often have to deal with new suppliers and third

party agents in these countries.  The government is a key customer for government and

military fleet sales.

Reputation

With the increasing growth in demand on back of rising income, expanding middle class and

young population base, in addition to a large pool of skilled manpower and growing

technology, will propel India to be among the world's top five auto-producers by 2015.

India is also one of the key markets for hybrid and electric medium-heavy-duty trucks and

buses.

Business Ethics

Technology giants Apple and Google have often had questions raised about the ethicality of

their business practices. The former for not doing enough to improve workers' conditions at

its suppliers' manufacturing units in China, and the latter for using its position as the

dominant search engine to thwart competition.

Executive summary

Ford company History in New Zealand

New Zealand subsidiary of Ford Motor Company its distribution and assembly operations

began in 1936 when it took them from the local franchisee. Since the closure of its final

assembly plant in Wiri, Auckland in 1997, all of its product offerings are fully imported,

from Japan, Australia and increasingly Europe. Since about 1970 its range has been similar

to Ford Australia's, with the Falcon model being popular until recent years.

One notable difference between Ford New Zealand's product line-ups and that of Ford

Australia has been the medium sized Mondeo from Europe. Whereas the Mondeo was

dropped in Australia in 2001, and did not return until 2007, in New Zealand it is one of

Ford's best-selling models, particularly in wagon form Ford Motor Company of New

Zealand Limited.

Henry Ford's first attempt at a car company under his own name was the Henry Ford

Company on November 3, 1901, which became the Cadillac Motor Company on August 22,

1902, after Ford left with the rights to his name. The Ford Motor Company was launched in

a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John

and Horace Dodge (who would later found their own car company).

During its early years, the company produced just a few cars a day at its factory on Mack

Avenue in Detroit, Michigan. Groups of two or three men worked on each car, assembling it

from parts made mostly by supplier companies contracting for Ford. Within a decade the

company would lead the world in the expansion and refinement of the assembly line

concept; and Ford soon brought much of the part production in-house in a vertical

integration that seemed a better path for the era.

Henry Ford was 39 years old when he founded the Ford Motor Company, which would go

on to become one of the world's largest and most profitable companies, as well as being one

to survive the Great Depression.

As one of the largest family-controlled companies in the world, the Ford Motor Company

has been in continuous family control for over 100 years.

After the first modern automobile was already created in the year 1886 by German inventor

Carl Benz (Benz Patent-Motorwagen), more efficient production methods were needed to

make the automobile affordable for the middle-class; which Ford contributed to, for instance

by introducing the first moving assembly line in 1913.

By 2005, both Ford and GM's corporate bonds had been downgraded to junk status, as a

result of high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding

market share, and an over dependence on declining SUV sales. Profit margins decreased on

large vehicles due to increased "incentives" (in the form of rebates or low interest financing)

to offset declining demand.

In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford Americas

Division President Mark Fields to develop a plan to return the company to profitability.

Fields previewed the Plan, named The Way Forward, at the December 7, 2005 board

meeting of the company and it was unveiled to the public on January 23, 2006.

"The Way Forward" included resizing the company to match market realities, dropping some

unprofitable and inefficient models, consolidating production lines, closing 14 factories and

cutting 30,000 jobs.

Ford moved to introduce a range of new vehicles, including "Crossover SUVs" built

on anybody car platforms, rather than more body-on-frame chassis.

In developing the hybrid electric power train technologies for the Ford Escape Hybrid SUV,

Ford licensed similar Toyota hybrid technologies to avoid patent infringements. Ford

announced that it will team up with electricity supply company Southern California

Edison (SCE) to examine the future of plug-in hybrids in terms of how home and vehicle

energy systems will work with the electrical grid.

Automobiles

As of 2012 Ford Motor Company sells a broad range of automobiles under the Ford marquee

worldwide, and an additional range of luxury automobiles under the Lincoln marquee in the

United States.

The company has sold vehicles under a number of other marques during its history.

The Mercury brand was introduced by Ford in 1939, continuing in production until 2011

when poor sales led to its discontinuation. In 1958, Ford introduced the Edsel brand, but

poor sales led to its discontinuation in 1960. In 1985, the Merkur brand was introduced in

the United States to market products produced by Ford of Europe; it was discontinued in

1989.

Ford acquired the British sports car maker Aston Martin in 1989, later selling it on March

12, 2007, although retaining a 15% stake, and bought Volvo Cars of Sweden in 1999, selling

it to Zhejiang Geely Holding Group in 2010. In November 2008, it reduced its

33.4% controlling interest in Mazda of Japan to a 13.4% non-controlling interest.

On November 18, 2010, Ford reduced their stake further to just 3%, citing the reduction of

ownership would allow greater flexibility to pursue growth in emerging markets. Ford and

Mazda remain strategic partners through exchanges of technological information and joint

ventures, including an American joint venture plant in Flat Rock, Michigan called Auto

Alliance.

Ford sold the United Kingdom-based Jaguar and Land Rover companies and brands to Tata

Motors of India in March 2008.

All-electric vehicles

Ford ended the Think City experiment and ordered all the cars repossessed and destroyed,

even as many of the people leasing them begged to be able to buy the cars from Ford. After

outcry from the lessees and activists in the US and Norway, Ford returned the cars to

Norway for sale.

Bill Ford was one of the first top industry executives to make regular use of a battery electric

vehicle, a Ford Ranger EV, while the company contracted with the United States Postal

Service to deliver electric postal vans based on the Ranger EV platform. Ford discontinued a

line of electric Ranger pickup trucks and ordered them destroyed, though it reversed in

January 2005, after environmentalist protest.

Hydrogen

Ford also continues to study Fuel Cell-powered electric power trains, and has demonstrated

hydrogen-fueled internal combustion engine technologies, as well as developing the next-

generation hybrid-electric systems. Compared with conventional vehicles, hybrid vehicles

and/or fuel cell vehicles decrease air pollution emissions as well as sound levels, with

favorable impacts upon respiratory health and decrease of noise health effects.

Ford Cars in India

The first time that a Ford car was seen dashing across the Indian roads, it was the year 1907.

Named as the Model A, this was not only the first offering of the American automaker in

India but was, in fact, the first car ever to exit the factories of Ford in 1903 - the same year

that the Ford Motor Company was established by Henry Ford in Dearborn, Michigan.

Established with the help of twelve investors, most notable of who were John and Horace

Dodge, the Ford Motor Company, within the very first decade of its launch, succeeded in

acquiring world leadership in the expansion and refinement of the assembly line concept.

Tata Motors Company in India

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive

Company) is an Indian multinational automotive manufacturing company headquartered in

Mumbai, India and a subsidiary of the Tata Group. Its products include passenger cars,

trucks, vans, coaches, buses, construction equipment and military vehicles. It is the world's

seventeenth-largest motor vehicle manufacturing company, fourth-largest truck

manufacturer and second-largest bus manufacturer by volume.

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar,Lucknow, Sanand, Dharwad and Pune in India, as well as in

Argentina, South Africa, Thailand and the United Kingdom. It has research and development

centers in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and

the United Kingdom.

Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land

Rover (the maker of Jaguar, Land Rover and Range Rover cars) and the South Korean

commercial vehicle manufactures Tata Daewoo. Tata Motors has a bus manufacturing joint

venture with Marcopolo S.A. (Tata Marcopolo), a construction equipment manufacturing

joint venture with Hitachi (Tata Hitachi Construction Machinery) and a joint venture

with Fiat which manufactures automotive components and Fiat and Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969.

Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,

becoming the first Indian manufacturer to achieve the capability of developing a competitive

indigenous automobile. In 1998 Tata launched the first fully indigenous Indian passenger

car, the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors

acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in

2004 and purchased Jaguar Land Rover from Ford in 2008.

Tata Motors is listed on the Bombay Stock Exchange, where it is a constituent of the BSE

SENSEX index, the National Stock Exchange of India and the New York Stock Exchange.

Tata Motors is ranked 314th in the 2012 Fortune Global 500 ranking of the world's biggest

corporations. Tata entered the commercial vehicle sector in 1954 after forming a joint

venture with Daimler-Benz of Germany.

After years of dominating the commercial vehicle market in India, Tata Motors entered the

passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. Tata

subsequently launched the Tata Estate (1992; a station wagon design based on the earlier

'Tata Mobile' (1989), a light commercial vehicle), the Tata Sumo (1994; LCV) and the Tata

Safari (1998; India's first sports utility vehicle).

Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although

initially analyzed by auto-analysts, its excellent fuel economy, powerful engine and an

aggressive marketing strategy made it one of the best selling cars in the history of the Indian

automobile industry. A newer version of the car, named Indica V2, was a major

improvement over the previous version and quickly became a mass-favorite. Tata Motors

also successfully exported large quantities of the car to South Africa. The success of Indica

played a key role in the growth of Tata Motors.

In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit,

Daewoo Commercial Vehicles Company, later renamed Tata Daewoo.

On 27 September 2004, Tata Motors rang the opening bell at the New York Stock Exchange

(NYSE) to mark the listing of Tata Motors.

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach

manufacturer Hispano Carrocera. Tata Motors continued its market area expansion through

the introduction of new products such as buses (Star bus Globus, jointly developed with

subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata

Daewoo).

In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus,

to manufacture fully built buses and coaches. In 2008, Tata Motors acquired the British car

maker Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car

brands, from Ford Motor Company.

In t r o d u c t i o n Of Tata Kiwioo

The Tata Kiwioo is engine, 3meters long, four-passenger city car built by Tata motors,

aimed primarily at the New Zealand market. The car is very fuel efficient, achieving around

26 kilometers per liter on the highway and around 22kilometers per liter in the city. The car

has a price ago just Rs.1lakhthe same price as the DVD player in alexia. Hence making it

easily affordable for a middle class family. Tata Kiwioo is a dream comes true for an

average New Zealand. Now the medium class people can also have and enjoy the ride of

four wheeler.

The car has achieved its low price by minimizing cost on unnecessary, luxuries, the basic

Kiwioo comes without front and rear fog lights, without a heater or air conditioning,

without anti-lock brakes, only one single wind screen wiper, manually operated windows,

manual steering with no air bags, tiny 12” wheels, plastic body parts joined with adhesive

instead of more conventional metal and welding.

In addition, Tata has come up with practical ways to reduce car weight and thereby trim

down the overall cost. It uses comparatively small and light engine, a 623cc two-cylinder

petrol engine made of aluminum, unlike conventional engines which are made out of cast-

iron. The engine of Tata Kiwioo is strategically place at the back of the car leaving the front

section for luggage, that too with the capacity of a briefcase.

This is the most significant element in bringing down the weight and the overall cost of the

car. Other factors that contribute towards the weight reduction are the usage of hollow

steering wheel shafts, plastic body panels and smaller tubeless tires. As are suit of them

erasures, Tata Kiwioo weighs only about 590kg.

Lesser weight and fewer parts mean lesser a material land lower cost for Tata Kiwioo. The

manufacturers of the Tata Kiwioo Car are aiming to provide an affordable mode of

transport to their initial target market of lower income families in New Zealand.

The Revenue Model

The way Tata Kiwioo raise funds include several aspects. Those aspects are detailed in the

as follows.

Selling the cars to clients

This activity is the first revenue flow of the project. The first targeted market is the New

Zealand one. The cars deliveries have started in July 2009. There are also project to extend

the market to Malaysia, the rest of Asia, Europe, Africa and South America, starting in 2011.

Bank Services

Tata KIWIOO have sign contract with New Zealand Banks in order to allow low income

people to get loans at low interests. Therefore, they could afford booking for their Tata

Kiwioo. In that contract, Tata Kiwioo and the bank all take advantages.

Maintenance Services

The Tata Kiwioo project includes a maintenance department. In fact, the customers will be

offered maintenance services at a fix price per month. Those services will be extremely

competitive and cheap as the car itself.

Advertising

Tata Kiwioo has been making a lot of advertisement in a lot of countries. As Tata Kiwioo

has become a famous trade, some channel will allow Tata Kiwioo Advertisement to be

displayed, increasing the channel audience.

In addition, Tata Motors will take advantage of sweepstakes organized in order to promote

the car. Those events always bring to the company both publicity and money.

Merchandising

There are a lot of product that have been manufactured in order to promote the Tata Kiwioo,

namely hats and cups. The company will therefore sell that product and make money

benefits from them.

Making franchises

The development of Tata Kiwioo started 6 years ago and hassled to the production of an

extremely efficient car as far as pollution and gas consumption are concerned. The

technology used could be sold to other companies as Licenses, leading to funds raise.

Distributors In addition, Tata Kiwioo have planned to use Distributors to make its product

easily available to the New Zealand population. Therefore those distributors will pay

royalties to Tata Kiwioo after selling each car.

At International Level

The Toyota IQ could be a competitor of Tata Kiwioo at international level because it is the

world’s smallest four seated car. Though the car is a small car since it gives the feel of a

large car since it has the power of a Toyota. But the Kiwioo’s price and design is much

better than the Toyota IQ.

Another car that could be a competitor will be Mitsubishi I. But there again people may opt

for the Kiwioo because of the mileage it provides if people are looking for a fuel efficient car

in that category. The Toyota aygo super mini could also compete with this car.

China's Cherry QQ could also be considered as a strong competitor who is expected to gain

foothold in the New Zealand market in 2008. The Cherry is expected to retail about 2,600

Euro. But when compared to any of these above mentioned international models the Tata

Kiwioo Europe a model stands out.

Table of content

COMPANY HISTORY

Ford company in New Zealand

Is the New Zealand subsidiary of Ford Motor Company its distribution and assembly operations

began in 1936 when it took them from the local franchisee? Since the closure of its final assembly

plant in Wiri, Auckland in 1997, all of its product offerings are fully imported, from Japan,

Australia and increasingly Europe.

Since about 1970 its range has been similar to Ford Australia's, with the Falcon model being

popular until recent years.

One notable difference between Ford New Zealand's product line-ups and that of Ford Australia has

been the medium sized Mondeo from Europe.

Whereas the Mondeo was dropped in Australia in 2001, and did not return until 2007, in New

Zealand it is one of Ford's best-selling models, particularly in wagon form Ford Motor Company of

New Zealand Limited.

Type Public company

Traded as NYSE: F (S&P 500 Component)

Industry Automotive

Founded June 16, 1903; 110 years ago

Founder(s) Henry Ford

Headquarters Dearborn, Michigan, U.S.

Area served Worldwide

Key people William C. Ford, Jr. (Executive Chairman)

Alan R. Mulally(President & CEO)

Products

Automobiles

Luxury Vehicles

Commercial Vehicles

Services

Automotive finance

Vehicle leasing

Vehicle service

Revenue Increase US$146.91 billion (2013)

Operating income Increase US$5.42 billion (2013)

Net income Increase US$7.15 billion (2013)

Total assets Increase US$202.02 billion (2013)

Total equity Increase US$26.38 billion (2013)

Owner(s) Ford Family (2%)

Employees 181,000 (2013)

Divisions Ford

Website Ford.com

History of Ford

20th century

Henry Ford's first attempt at a car company under his own name was the Henry Ford Company on

November 3, 1901, which became the Cadillac Motor Company on August 22, 1902, after Ford left

with the rights to his name. The Ford Motor Company was launched in a converted factory in 1903

with $28,000 in cash from twelve investors, most notably John and Horace Dodge (who would later

found their own car company).

During its early years, the company produced just a few cars a day at its factory on Mack Avenue in

Detroit, Michigan. Groups of two or three men worked on each car, assembling it from parts made

mostly by supplier companies contracting for Ford. Within a decade the company would lead the

world in the expansion and refinement of the assembly line concept; and Ford soon brought much

of the part production in-house in a vertical integration that seemed a better path for the era.

Henry Ford was 39 years old when he founded the Ford Motor Company, which would go on to

become one of the world's largest and most profitable companies, as well as being one to survive

the Great Depression. As one of the largest family-controlled companies in the world, the Ford

Motor Company has been in continuous family control for over 100 years.

After the first modern automobile was already created in the year 1886 by German inventor Carl

Benz (Benz Patent-Motorwagen), more efficient production methods were needed to make the

automobile affordable for the middle-class; which Ford contributed to, for instance by introducing

the first moving assembly line in 1913.

In 1908 Ford introduced the first engine with a removable cylinder head, in the Model T. In 1930,

Ford introduced the Model A, the first car with safety glass in the windshield. Ford launched the

first low priced V8 engine powered car in 1932.

Ford offered the Lifeguard safety package from 1956, which included such innovations as a

standard deep-dish steering wheel, optional front, and, for the first time in a car, rear seatbelts, and

an optional padded dash, Ford introduced child-proof door locks into its products in 1957, and in

the same year offered the first retractable hardtop on a mass-produced six-seated car. The Ford

Mustang was introduced in 1964. In 1965 Ford introduced the seat belt reminder light.

With the 1980s, Ford introduced several highly successful vehicles around the world. During the

1980s, Ford began using the advertising slogan, "Have you driven a Ford, lately?" to introduce new

customers to their brand and make their vehicles appear more modern. In 1990 and 1994

respectively, Ford also acquired Jaguar Cars and Aston Martin. During the mid- to late 1990s, Ford

continued to sell large numbers of vehicles, in a booming American economy with a soaring stock

market and low fuel prices.

With the dawn of the new century, legacy healthcare costs, higher fuel prices, and a faltering

economy led to falling market shares, declining sales, and diminished profit margins. Most of the

corporate profits came from financing consumer automobile loans through Ford Motor Credit

Company.

21st century

By 2005, both Ford and GM's corporate bonds had been downgraded to junk status, as a result of

high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding market share,

and an over dependence on declining SUV sales. Profit margins decreased on large vehicles due to

increased "incentives" (in the form of rebates or low interest financing) to offset declining demand.

In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford Americas Division

President Mark Fields to develop a plan to return the company to profitability. Fields previewed the

Plan, named The Way Forward, at the December 7, 2005 board meeting of the company and it was

unveiled to the public on January 23, 2006.

"The Way Forward" included resizing the company to match market realities, dropping some

unprofitable and inefficient models, consolidating production lines, closing 14 factories and cutting

30,000 jobs.

Ford moved to introduce a range of new vehicles, including "Crossover SUVs" built on unibody car

platforms, rather than more body-on-frame chassis.

In developing the hybrid electric power train technologies for the Ford Escape Hybrid SUV, Ford

licensed similar Toyota hybrid technologies to avoid patent infringements. Ford announced that it

will team up with electricity supply company Southern California Edison (SCE) to examine the

future of plug-in hybrids in terms of how home and vehicle energy systems will work with the

electrical grid.

Under the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet of Ford

Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with

the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer

settings", according to Ford.

Products & services

Automobiles

As of 2012 Ford Motor Company sells a broad range of automobiles under the Ford marque

worldwide, and an additional range of luxury automobiles under the Lincoln marque in the United

States.

The company has sold vehicles under a number of other marques during its history.

The Mercury brand was introduced by Ford in 1939, continuing in production until 2011 when poor

sales led to its discontinuation. In 1958, Ford introduced the Edsel brand, but poor sales led to its

discontinuation in 1960. In 1985, the Merkur brand was introduced in the United States to market

products produced by Ford of Europe; it was discontinued in 1989.

Ford acquired the British sports car maker Aston Martin in 1989, later selling it on March 12,

2007, although retaining a 15% stake, and bought Volvo Cars of Sweden in 1999, selling it

to Zhejiang Geely Holding Group in 2010. In November 2008, it reduced its 33.4% controlling

interest in Mazda of Japan to a 13.4% non-controlling interest. 

On November 18, 2010, Ford reduced their stake further to just 3%, citing the reduction of

ownership would allow greater flexibility to pursue growth in emerging markets. Ford and Mazda

remain strategic partners through exchanges of technological information and joint ventures,

including an American joint venture plant in Flat Rock, Michigan called Auto Alliance.

Ford sold the United Kingdom-based Jaguar and Land Rover companies and brands to Tata

Motors of India in March 2008.

In 2011, J.D. Power ranked Ford 23rd in initial quality, a drop from fifth in 2010. Consumer

Reports magazine likewise decided not to recommend several new Ford SUVs, blaming the Sync

entertainment and phone system used.

Marque Country of origin Years used/owned Markets

Ford United States 1903 to present Global

Lincoln United States 1922 to present North America, Middle East

Mercury United States 1939 to 2011 North America

Edsel United States 1958 to 1960 North America

Merkur United States 1985 to 1989 North America

Jaguar United Kingdom 1989 to 2008 Global

Aston Martin United Kingdom 1989 to 2007 Global

Volvo Sweden 1999 to 2010 Global

Land Rover United Kingdom 2000 to 2008 Global

Trucks

An advert for the 1961 Ford H-Series truck

Ford has produced trucks since 1908. Countries where Ford commercial vehicles are or were made

include Argentina, Australia, Brazil, Canada (badged Mercury too), France, Germany, India,

Netherlands, Philippines, Spain (badged Ebro too), Turkey, UK (badged also Fordson and Thames)

and USA.

From the 1940s to late 1970s Ford's Ford F-Series were used as the base for light trucks for the

North American market.

Most of these ventures are now extinct. The European one that lasted longest was the lorries arm of

Ford of Britain, which was eventually sold to Iveco group in 1986, and whose last significant

models were the Transcontinental and the Cargo.

In the United States, Ford's heavy trucks division (Classes 7 and 8) was sold in 1997 to Freightliner

Trucks, which rebranded the lineup as Sterling. Freightliner is in the process of discontinuing this

line.

Hybrid electric vehicles

In 2004 Ford and Toyota agreed a patent sharing accord which granted Ford access to certain hybrid

technology patented by Toyota; in exchange Ford licensed Toyota some of its own patents.  In 2005

Ford introduced the Hybrid-Electric Escape. With this vehicle, Ford was third to the automotive

market with a hybrid electric vehicle and the first hybrid electric SUV to market. This was also the

first hybrid electric vehicle with a fuel capability to run on E85.] The Escape's platform

mate Mercury Mariner was also available with the hybrid-electric system in the 2006 model year—

a full year ahead of schedule. The similar Mazda Tribute will also receive a hybrid-electric

powertrain option, along with many other vehicles in the Ford vehicle line.

In 2005 Ford announced a goal to make 250,000 hybrids a year by 2010, but by mid-2006

announced that it would not meet that goal, due to excessively high costs and the lack of sufficient

supplies of the hybrid-electric batteries and drivetrain system components. Instead, Ford has

committed to accelerating development of next-generation hybrid-electric power plants in Britain,

in collaboration with Volvo. This engineering study is expected to yield more than 100 new hybrid-

electric vehicle models and derivatives.

In September 2007 Ford announced a partnership with Southern California Edison (SCE) to

examine how plug-in hybrids will work with the electrical grid. Under the multi-million-dollar,

multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrids into plug-in

hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's

electrical grid. Some of the vehicles will be evaluated "in typical customer settings", according to

Ford.

On June 12, 2008 USDOE expanded its own fleet of alternative fuel and advanced technology

vehicles with the addition of a Ford Escape Plug-In Hybrid Flex-Fuel Vehicle. The vehicle is

equipped with a 10-kilowatt (13 hp) lithium-ion battery supplied by Johnson Controls-Saft that

stores enough electric energy to drive up to 30 miles (48 km) at speeds of up to 40 mph (64 km/h).

In March 2009 Ford launched hybrid versions of the Ford Fusion Hybrid and the Mercury Milan

Hybrid in the United States, both as 2010 models. Current and planned Ford hybrid electric vehicles

include the Ford Escape Hybrid (2004–present), Mercury Mariner (2006–present), Ford Fusion

Hybrid/Mercury Milan (2009–present) and Ford Edge/Lincoln MKX (2009/10–present).

All-electric vehicles

Ford ended the Think City experiment and ordered all the cars repossessed and destroyed, even as

many of the people leasing them begged to be able to buy the cars from Ford. After outcry from the

lessees and activists in the US and Norway, Ford returned the cars to Norway for sale.

Bill Ford was one of the first top industry executives to make regular use of a  battery electric

vehicle, a Ford Ranger EV, while the company contracted with the United States Postal Service to

deliver electric postal vans based on the Ranger EV platform. Ford discontinued a line of

electric Ranger pickup trucks and ordered them destroyed, though it reversed in January 2005, after

environmentalist protest.

The North American Focus EV is based on next generation Focus fuel vehicle, converted to an

electric propulsion system as a Production EV by Magna International, and is planned to be

launched in late 2011. Ford plans to have 10,000 Focus EVs on the road beginning in late 2011 in

partnership with Magna International and it will be a global vehicle that will be sold in the three key

markets of North America, Europe and Asia-Pacific. The Focus EV has a maximum range of about

160 kilometers or 100 miles, and a top speed of about 120+ kilometers or 75+ miles per hour.

Current and planned Ford electric vehicles include the all-electric Transit Connect (2010–present),

the Ford Focus EV (2011–present), the C-MAX Energi (on sale from third quarter 2012) and

the Ford Fusion EV (on sale from third quarter 2012).

Ford battery electric vehicle (BEV) demonstrators are included in a British project that is part of the

UK government's zero carbon vehicle fleet of Focus BEVs. The BEV demonstrator fleet is being

developed partly with public funding from the government's Technology Strategy Board (TSB),

which promotes innovative industry-led projects that reduce CO2 while benefiting the UK's

transport system.

Hydrogen

Ford also continues to study Fuel Cell-powered electric power trains, and has demonstrated

hydrogen-fueled internal combustion engine technologies, as well as developing the next-generation

hybrid-electric systems. Compared with conventional vehicles, hybrid vehicles and/or fuel

cell vehicles decrease air pollution emissions as well as sound levels, with favorable impacts upon

respiratory health and decrease of noise health effects.

Ford has launched the production of hydrogen-powered shuttle buses, using hydrogen instead of

gasoline in a standard internal combustion engine, for use at airports and convention centers.At the

2006 Greater Los Angeles Auto Show, Ford showcased a hydrogen fuel cell version of its Explorer

SUV. The Fuel cell Explorer has a combined output of 174 hp (130 kW). It has a large hydrogen

storage tank which is situated in the center of the car taking the original place of the conventional

model's automatic transmission.

The centered position of the tank assists the vehicle reach a notable range of 350 miles (563 km),

the farthest for a fuel cell vehicle so far. The fuel cell Explorer the first in a series of prototypes

partly funded by the United States Department of Energy to expand efforts to determine the

feasibility of hydrogen- powered vehicles. The fuel cell Explorer is one of several vehicles with

green technology being featured at the L.A. show, including the 2008 Ford Escape Hybrid, PZEV

emissions compliant Fusion and Focus models and a 2008 Ford F-Series Super Duty outfitted with

Ford's clean diesel technology.

Increased fuel efficiency

Ford Motor Company announced it will accelerate its plans to produce more fuel-efficient cars,

changing both its North American manufacturing plans and its lineup of vehicles available in the

United States. In terms of North American manufacturing, the company will convert three existing

truck and sport utility vehicle (SUV) plants for small car production, with the first conversion at its

Michigan Truck Plant.

In addition, Ford's assembly plants near Mexico City, Mexico, and in Louisville, Kentucky, will

convert from pickups and SUVs to small cars, including the Ford Fiesta, by 2011. Ford will also

introduce to North America six of its European small vehicles, including two versions of the Ford

Fiesta, by the end of 2012. And last but not least, Ford is stepping up its production of fuel-efficient

"Eco Boost" V-6 and four-cylinder engines, while increasing its production of hybrid vehicles.

Ford of Europe developed the ECOnetic Programmed to address the market and legislative need for

higher fuel efficiency and lower CO2 emissions. As opposed to the hybrid engine technology used

in competitor products such as the Toyota Prius, ECOnetic improves existing technology. Using

lower consuming Duratorq TDCi diesel engines, and based on a combination of improved

aerodynamics, lower resistance and improved efficiency, the Ford Fiesta is currently the lowest

emitting mass-produced car in Europe, while the 2012 Ford Focus ECOnetic will have better fuel

consumption than the Prius or the Volkswagen Golf Blue Motion.ECOnetic is not presently planned

to be sold in North American due to current perceived lower consumer demand.

Ford has challenged University teams to create a vehicle that is simple, durable, lightweight and

come equipped with a base target price of only $7,000. The students from Aachen

University created the "2015 Ford Model T".

In 2000, under the leadership of the current Ford chairman, William Clay Ford, the Company

announced planned 25 percent improvement in the average mileage of its light truck fleet –

including its popular SUVs – to be completed by the 2005 calendar year. In 2003, Ford announced

that competitive market conditions and technological and cost challenges would prevent the

company from achieving this goal.

Researchers at the University of Massachusetts Amherst have, however, listed Ford as the seventh-

worst corporate producer of air pollution, primarily because of the manganese compounds, 1,2,4-

trimethylbenzene, and glycol ethers released from its casting, truck, and assembly plants.The United

States Environmental Protection Agency has linked Ford to 54 Superfund toxic waste sites, twelve

of which have been cleaned up and deleted from the list.

For the 2007 model year, Ford had thirteen U.S. models that achieve 30 miles per gallon or better

(based on the highway fuel economy estimates of the EPA) and several of Ford's vehicles were

recognized in the EPA and Department of Energy Fuel Economy Guide for best-in-class fuel

economy. Ford claimed to have eliminated nearly three million pounds of smog-forming emissions

from their U.S. cars and light trucks over the 2004 to 2006 model years.

PC power management

On March 2010, Ford announced its PC power management system which it developed with Night

Watchman software from 1E. The company is expected to save $1.2m on power cost and reduce

carbon footprint by an estimated 16,000 to 25,000 metric tons annually when the system is fully

implemented.

PC power management is being rolled out to all Ford computer users in US this month and it will be

used in Ford operations around the world later in the year. Computers with this power profile

enabled will monitor its usage patterns and decides when it can be turned off. PC user will be

alerted of the approaching power down time and given the opportunity to delay it.

According to company reduction in carbon footprint and power cost will be achieved by developing

'Power Profiles' for every PC in the company.

Sponsorships

Ford sponsors numerous events and sports facilities around the US, most notably the Ford Center in

downtown Evansville, Indiana, and Ford in downtown Detroit

Ford has also been a major sponsor of the UEFA Champions League for over two decades and is

also a longtime sponsor of the Sky media channel's coverage of Premier League football. Senior

Ford marketer Mark Jones explained in May 2013 the process behind the two sponsorship deals:

We start with a blank piece of paper and work out if the sponsorship still works for us and ask does

it meet our objectives? We want to find a moment in time when people come together and have a

collective experience and we achieve this through the sponsorships.

Ford Cars in India

The first time that a Ford car was seen dashing across the Indian roads, it was the year 1907. Named

as the Model A, this was not only the first offering of the American automaker in India but was, in

fact, the first car ever to exit the factories of Ford in 1903 - the same year that the Ford Motor

Company was established by Henry Ford in Dearborn, Michigan. Established with the help of

twelve investors, most notable of who were John and Horace Dodge, the Ford Motor Company,

within the very first decade of its launch, succeeded in acquiring world leadership in the expansion

and refinement of the assembly line concept.

Over the long years of its existence, this auto-marque has been credited for a number of smart and

critical automotive inventions and innovations, including the likes of the first car with safety glass

windscreen in 1930, the first low priced V8 engine powered car in 1932, the first rear seat safety

belts in 1956, child-proof door locks in 1957 and the seat belt reminder light in 1965.

Although it has been over a century since the foundation stone for the company was laid, the Ford

family has been its sole owner, which makes it one of the largest family-controlled companies in the

world. Today, the name of Ford Motor Company is counted amongst not only the largest but also

the most profitable companies that the world has ever seen.

In India, the production of Ford cars did not begin until 1926. After continuing its operations for

about 28 years in the country, Ford India Private Limited had to shut shop due to its continuing state

of loss in the domestic Indian market. However, that did not stop the manufacturer from making a

return journey to the Indian shores.

Joining hands with the home-grown camp of Mahindra & Mahindra Limited, the Ford Motor

Company, once again, established its subsidiary in India, this time by the name of Mahindra Ford

India Limited (MFIL) in October 1995.

This joint venture, which began as a 50-50 partnership between the two auto-giants, soon turned

into a majorly-owned, 72% to be precise, subsidiary of the American automaker and was renamed

as Ford India Private Limited in March 1998. Presently, the entire stake of this Indian arm resides

with the original Ford Company

Ever since Ford came back to India in 1995, it has made a total investment of over $2 billion in the

company and today it ranks 6th amongst the largest carmakers of the country, after Maruti Suzuki,

Hyundai, Tata, Mahindra and Chevrolet. While its headquarters are located in Chengalpattu,

Chennai, Tamil Nadu, the main production facility, which is capable of building 150,000 cars

working two shifts and 200,000 with three shifts, of Ford in India is situated in Maraimalai Nagar,

45 km from Chennai.

To cater to the increasing demands in the domestic market and to support its plans for expansion of

engine exports, Ford India has made a massive investment of $72 million for enhancing its engine

production capacity to 330,000.

Currently, the Indian wing of Ford exports 25% of its car production and 40% of its engine

production, its exports list featuring not less than 35 countries of the world, including South Africa,

Nepal, Mexico, Kenya, Bahrain, Angola, Bermuda, Ghana, Iraq, Liberia, Lebanon, Malawi,

Madagascar, Mauritius, Nigeria, Senegal, Tanzania, UAE, Zambia and Zimbabwe. In India, the

company has long since crossed the 127,000 mark and plans to step up production even further over

days to come. In addition to a huge manufacturing base, Ford India has also established a

widespread network of about 260 dealerships, which spans across 138 cities, covering 23 states and

3 Union Territories.

Ford Models in India

The production of Ford cars in India, after it re-entered the Indian car-bazaar, began in 1998 at the

Chennai-based facility, the first locally produced model being Ford Escort, which was later

succeeded by Ford Ikon in 2001. Ever since then, a number of new models have been introduced by

this American brand in India, like the Endeavour and the Fiesta, and several have been discontinued

as well, such as the Fusion and the Mondeo. At present, the fleet of Ford in India comprises of a

total of 5 models, namely Ford Figo, Ford Classic, Ford Ecosport, Ford Fiesta and Ford Endeavour.

With such spectacular models to offer, the automaker ranks amongst the strongest game-players in

the Indian automobile field.

Ford Lowest Price Cars

For nearly 15 years now, Ford has been a significant part of the Indian automotive industry. Over

these long years, a number of marvels have exited its factories, including those that were

specifically designed for the domestic buyers as well those masterpieces from its parent company's

portfolio that have been an international hit. One of the most popular offerings that Ford have

launched in the Indian market is the incredible hatchback, Figo.

Built and priced especially for the Indian buyers, this car has been a hot favorites of the masses

since 2010. Other entrants of the company have also been priced very competitively, keeping in

mind the trends of the local market. At present, the model that comes bearing the smallest price tag

of all the Ford offerings is Ford Figo, which costs a sum of Rs 3,86,278.

Ford Highest Price Cars

Known for the smartly branded price tags that it attaches to its cars, Ford is one of the most popular

car brands of India. Presently operating in the hatchback, sedan and SUV segments, in each of

which it has succeeded in carving a distinct niche for itself, this auto-major has always been able to

read the trend of the Indian car-bazaar very well and hence has priced its vehicles quite

aggressively. That's the reason why even the most expensive model to feature on the Ford fleet of

cars - the fabulous Ford Endeavour - costs its buyers not more than Rs 18,94,584 for its ownership.

Most Fuel-efficient Ford Cars

For decades, the Ford Motor Company has been involved in the design, engineering and production

of automobile engines, and some truly brilliant marvels of engineering have been brought forward

thanks to the company's terrific efforts over all these years. The Indian wing of the company too

carries the same genes in its veins and has excelled in the art of engine manufacture, providing not

only India but the world as a whole with machines that can be trusted and relied upon.

These engines, besides depicting qualities of high performance and impressive power, promise to

return some pretty amazing mileage returns too, which makes them quite in demand especially with

the mileage-obsessed Indian car buyers. Currently, the Ford car that offers the best fuel-efficiency

in the entire clan is Ford Fiesta, which comes priced at Rs 7,47,483.

Ford Upcoming Models

Ever since the year 1995, when Ford Motor Company made a comeback in the Indian car market,

the company has invested more than $2 billion in its operations, doubled the production capacity of

its plant and is in the process of setting up a new $1 billion worth state-of-the-art manufacturing

plant at Sanand, Gujarat, which would add an extra 270,000 engine and 240,000 vehicle units to its

annual production capacity in India.

Ford India has continuously worked right from its inception to expand and strengthen its hold in the

domestic market of India as well in those of other countries across the globe. Following this very

aggressive expansion strategy, the automaker has decided to bring some new members on board

over the days to come. These upcoming new models that are likely to join the squad of Ford in India

quite soon are Ford B Max, Ford Endeavour and Ford Figo Concept.

Failure

Ford has 5 car models available in India. The available models are Ford Figo, Ford Classic, Ford

Eco sport, Ford Fiesta, Ford Endeavour,. The minimum priced model of Ford is Ford Figo priced at

Rs 3,86,278 and the maximum priced model of Ford is Ford Endeavour priced at Rs 22,05,135.

FORD CAR MODELS

Ford FigoRs 3,86,278*

Rs 5,99,900*

Ford Classic

Rs 4,88,016*

Rs 7,34,999*

Ford Ecosport

Rs 6,14,993*

Rs 9,48,997*

SWOT Analysis of Ford Company

Strengths and Weaknesses

Within the past year, Ford’s reputation has been plagued by extensive recalls. “When you have

three, four or five recalls, it creates doubts about the vehicles,” said automotive analyst Greg

Salchow. Beyond this main internal issue, Ford has also endured external problems like the falling

economy and the Sept. 11 attacks, forcing them to make internal changes to make up for slumping

sales. Here we have provided a list of internal strengths and weaknesses, organized by public or

major issue that focus on what the company has done internally, either as a result of external issues

or as common procedure.

Strengths:

Community Relations:

Ford has made numerous efforts to target the surrounding community. A breast cancer awareness

campaign was created in which celebrities are enlisted to tell how breast cancer has affected them.

The company takes strides to protect the environment demonstrated by the development of an

electric vehicle and efforts to increase fuel efficiency. Since the Sept. 11 attacks on America, Ford

and its employees have made extensive donations and held fundraisers and events by Ford in

response. (See Appendix)

Employee Relations:

Ford provides incentives for employees to work at high quality levels. For example, the “Thumbie”

award is given to employees who demonstrate a high personal commitment to their customers and

community. Higher wages are also characteristic of the company. Hourly workers typically have

wages from $19-$26 an hour, while skilled trade workers make $21-$30 an hour. For the last 20

years, Ford has issued no involuntary layoffs or dismissals of salaried employees, although this year

may be an exception. The company also created a Family Service and Learning Center program for

Ford workers, family members and retirees, offering health classes, after-school tutoring and trips

for seniors.

Investor Relations:

Ford maintains a high level of communication with its investors and potential investors. The

company accurately and honestly reports earnings and losses in ways easily accessible by the public

via company Web site, mailings, and print materials by request.

Weaknesses:

Investor Relations:

As a result of the recessing economy, investors are worried about slumping sales and profits, a

possible dividend cut, a cash position that has fallen to $4 billion from $15 in a year, and now, the

possibility of a credit downgrade. The Ford Board of Directors cut dividends on class B and

common stock for the first time in a decade. Due to increasing expenditures from recalls and

severance packages shareholders aren’t getting as big of a return on their investments in the

company.

Employee Relations:

Ford is using a “voluntary separation program” to lay off employees, and plans amount to the

elimination of about 10 percent of Ford’s salaried workforce in North America (4,000-5,000

workers). According to workers at Ford’s world headquarters in Dearborn, Michigan, no one knew

anything about the job cuts until an announcement was made on the radio, although people had

been expecting layoffs.

A plan to cut all overtime, excluding plants mandated by union contracts or plants producing a

highly popular product, has also been enforced. At the end of Sept 2001, three Ford assembly plants

were working scheduled overtime. Last year, and into spring 2001, ten plants were working

scheduled overtime.

Customer Relations:

Ford has recalled almost two million vehicles in 2001, with the Firestone tire recalls alone costing

the company more than $3 billion. Because such safety precautions are necessary, customers

currently have little confidence in Ford products. The company notifies owners of recalls via first-

class mail, but this will not protect customers with unsafe vehicles from harm.

Listed in the annual report are a number of ways Ford targets their customers. The company

provides a Customer Insight Center to train employees to respond to the needs of customers,

interact with customers at race events, and talk with customers “face-to-face at auto shows and at

dealerships.” Ford does nothing else to show their customers how important they really are.

Opportunities and Threats

Opportunities:

Since the terrorist attacks on Sept. 11, patriotism has surged through the United States. Many

consumers will seek American products, benefiting companies such as Ford. In an effort to

stimulate buyers to combat decreasing sales, Ford implemented a zero percent financing plan

through Oct. 2001 with their “Ford Drives America” campaign. Investors will be encouraged by this

plan’s opportunity to increase profits and revenue, leading to greater investor trust in the company.

The attacks also gave Ford the chance to show their commitment to America by donating millions

of dollars towards relief efforts.

In addition, both investors and customers will have more confidence in the company because of the

new CEO William Clay Ford. For the company’s publics, a new face in higher management could

mean changes within the company on all levels. Bill Ford has plans to invest more time in

improving and restructuring relationships inside and out of the company. His leadership provides

the company with an opportunity to implement new ideas, leading to increased stability and

confidence within the company.

Threats:

With the knowledge of the safety issues surrounding Firestone tires on Ford Explorers, consumers

have been scared to purchase Ford vehicles. Customers have become critical of Ford’s aging

products and instead are buying cars and trucks made by foreign competitors, as well as those of

General Motors.

The recession and the war discourage people from investing in the luxury of new cars, thus Ford’s

appeal has lessened significantly, threatening the entire company. (Appendix: “What’s Behind

Ford’s Fall” Fortune).

Current layoffs due to lower production levels will continue to raise concerns among employees

about their job security. Layoffs are also eminent because of the loss of revenue due to Firestone

tire recalls and recalls on millions of other vehicles, lawsuits surrounding the cases, and the

recession.

Like most companies facing a challenging market, Ford will have a tough time pleasing investors.

Also, Ford’s publics currently question the overall reputation of the company, especially concerning

safety issues, which can devalue Ford stock. The increase of global market presence from other

automobile companies will cause Ford to lose market share in the automobile industry.

Recommendation

Ford is successful when it sells cars. Therefore, appealing to our customers and potential customers

is the most important factor in reaching the short-term goal of selling more cars. As a result,

investors will see a greater return—which makes them happy. Employees will feel more secure in

their jobs, because Ford’s productivity will increase. In order to reach these goals:

Objective: To establish a positive reputation of safety, honesty, and customer service in the eyes of

all publics for Ford within the next six months while increasing earnings by 25 cents per share by

the fourth quarter of 2002.

Strategy: To create the “Changing the Face of Ford” campaign to replace Ford’s current damaged

reputation with a new, positive image. Identify William Clay Ford as the new face emphasizing

change within the company while maintaining the company’s founding ideals.

Tactics:

Ford will establish a joint team with members of Firestone and an independent research firm

to reevaluate the manufacturing process to ensure that only safe vehicles leave the plants.

Conduct surveys and focus groups with several thousand Ford owners to determine

customer satisfaction and concerns.

Promote hotlines and online help services to answer questions regarding recalls and changes

within the company.

When the research is complete, hold a nationally televised forum in Detroit. This forum,

facilitated by the new CEO, will unveil the research and answer any questions or concerns.

Create two series of commercials, one featuring the new CEO in association with the

“Changing the Face of Ford” campaign, and the other emphasizing the patriotic spirit of the

country, promoting cars that are red, white, and blue.

Renovate the Ford.com Web site to make it user-friendly, enticing and direct. Include all

components of the “Changing the Face of Ford” campaign, as well as a “Ford Yearbook,”

introducing the changes in high-level management.

Institute a policy that features a free car wash and a free American flag to any Ford owner

who returns to their dealership for a checkup.

Assign Ford officials to contact/visit the victims and their families to accept responsibility

for the faulty vehicles, and offer condolences and compensation.

TATA MOTORS HISTORY

Tata Motors Company in India

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive

Company) is an Indian multinational automotive manufacturing company headquartered in

Mumbai, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans,

coaches, buses, construction equipment and military vehicles. It is the world's seventeenth-largest

motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus

manufacturer by volume.

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar,Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina,

South Africa, Thailand and the United Kingdom. It has research and development centres in Pune,

Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom.

Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land Rover (the

maker of Jaguar, Land Rover and Range Rover cars) and the South Korean commercial vehicle

manufactures Tata Daewoo.

Tata Motors has a bus manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a

construction equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction

Machinery) and a joint venture with Fiat which manufactures automotive components and Fiat and

Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial

vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors entered

the passenger vehicle market in 1991 with the launch of the Tata Sierra, becoming the first Indian

manufacturer to achieve the capability of developing a competitive indigenous automobile.In 1998

Tata launched the first fully indigenous Indian passenger car, the Indica, and in 2008 launched

the Tata Nano, the world's cheapest car. Tata Motors acquired the South Korean truck

manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover

from Ford in 2008.

Tata Motors is listed on the Bombay Stock Exchange, where it is a constituent of the BSE

SENSEX index, the National Stock Exchange of India and the New York Stock Exchange. Tata

Motors is ranked 314th in the 2012 Fortune Global 500 ranking of the world's biggest corporations.

Tata Motors Limited

Tata Motors Logo.svg

Type Public

Traded as BSE: 500570 (BSE SENSEX Constituent)

NSE: TATAMOTORS

NYSE: TTM

Industry Automotive

Founded 1945

Founder(s) J. R. D. Tata

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Ratan Tata (Chairman Emeritus)

Cyrus PallonjiMistry (Chairman)

Karl Slym (died 26 January 2014, Managing Director)

Ravi Kant (Vice Chairman)

Products Automobiles

Commercial vehicles

Coaches

Buses

Construction equipment

Military vehicles

Automotive parts

Services

Automotive design,

engineering and outsourcing services

Vehicle leasing

Vehicle service

Revenue Increase US$ 34.7 billion (FY 2012-13

Operating income Increase US$ 3.06 billion (2012)

Profit Increase US$ 2.28 billion (2012)

Total assets Increase US$ 28.05 billion (2012)

Total equity Increase US$ 6.44 billion (2012)

Employees 59,759 (2012)[4]

Parent Tata Group

Divisions Tata Motors Cars

Subsidiaries Jaguar Land Rover

Tata Daewoo

Website www.tatamotors.com

TATA MOTORS HISTORY

Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-

Benz of Germany. After years of dominating the commercial vehicle market in India, Tata Motors

entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle.

Tata subsequently launched the Tata Estate (1992; a station wagon design based on the earlier 'Tata

Mobile' (1989), a light commercial vehicle), the Tata Sumo (1994; LCV) and the Tata Safari (1998;

India's first sports utility vehicle).

Tata launched the Indica in 1998, the first fully original Indian passenger car. Although initially

criticized by auto-analysts, its excellent fuel economy, powerful engine and an aggressive

marketing strategy made it one of the best selling cars in the history of the Indian automobile

industry. A newer version of the car, named Indica V2, was a major improvement over the previous

version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities

of the car to South Africa. The success of Indica played a key role in the growth of Tata Motors.

In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo

Commercial Vehicles Company, later renamed Tata Daewoo.

On 27 September 2004, Tata Motors rang the opening bell at the New York Stock Exchange

(NYSE) to mark the listing of Tata Motors.

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach

manufacturer Hispano Carrocera. Tata Motors continued its market area expansion through the

introduction of new products such as buses (Star bus&Globus, jointly developed with subsidiary

Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo).

In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to

manufacture fully built buses and coaches.In 2008, Tata Motors acquired the British car

maker Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car brands,

from Ford Motor Company.

In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo; the

range went in sale in South Korea, South Africa, the SAARC countries and the Middle-East at the

end of 2009.

Tata acquired full ownership of Hispano Carrocera in 2009.

In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company Trilix

for €1.85 million. The acquisition formed part of the company's plan to enhance its styling and

design capabilities.In 2012, Tata Motors announced it would invest around  6 billion in the

development of Futuristic Infantry Combat Vehicles in collaboration with DRDO.In 2013, Tata

Motors announced it will sell in India, the first vehicle in the world to run on compressed air

(engines designed by the French company MDI) and dubbed "Mini CAT".

On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the 22nd floor

to the 4th floor of the Shangri-La Hotel in Bangkok where he was to attend a meeting of Tata

Motors Thailand.

Tata Motors Cars

Tata Motors Cars is a division of Tata Motors which produces passenger cars under the Tata Motors

marque. Tata Motors is among the top four passenger vehicle brands in India with products in the

compact, midsize car and utility vehicle segments. The company’s manufacturing base in India is

spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar

(Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat). Tata's dealership, sales, service and

spare parts network comprises over 3,500 touch points. Tata Motors has more than 250 dealerships

in more than 195 cities across 27 states and 4 Union Territories of India. It has the third largest sales

and service network after Maruti Suzuki and Hyundai.

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia

and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in

many countries it has only managed to create a large consumer base in the Indian Subcontinent,

namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata is also present in Italy, Spain,

Poland, Romania, Turkey, Chile, and South Africa.

Tata Motors - Product Portfolio

Tata Indica: First locally made passenger car, Tata Indica is a compact rear door car that attracted

the attention of the people within the months of its launch. Spacious, comfortable and reasonably

priced, Indica is perfect for Indian roads and families.

Tata Sumo Victa: Introduced in 2004, Tata

Sumo Victa is an MUV equipped with spacious

interiors, burly appeal and an exclusively designed

cockpit. With 4.9m of rotating radius, coercing

Victa through packed Indian roads is never an

issue.

Indica V2 Xeta: designed for urban Indian middle class it boasts of its competitive cost and

functionality. At the hatch back it can comfortable hold three people and two in the front seat.

Tata Indigo: India's first luxury sedan, Tata Indigo is equipped with hi-tech features and stylish

design. Competitively valued, the car is highly admired by Indian customers.

Tata Indigo Marina: Tata Indigo Marina is the station car adaptation of their renowned model

Indica and takes pride of its opulence, roomy interiors that of an MUV and superb performance.

Tata Safari: Perfect for off-road drive, Tata Safari is Tata motors first sports utility vehicle (SUV).

Adorned with powerful engine, sporty appeal and excellent performance, Safari is preferred by

Indian car enthusiasts.

Tata Indigo SX: Introduced in the year 2005, Tata Indigo SX is renowned for its chic and panache.

It is widely admired by the end users and keeping the Indian roads in mind.

Tata Motors - Latest Launches

Tata Manza

Tata Land Rover

Tata Jaguar

Indica Vista

Tata IndicaDicor

SWOT Analysis of TATA MOTORS

Strength

One of the most established company in automobile sector

Inclusive & wide-ranging distribution and service network

Good market penetration in the taxi & rental segment

Expert service professionals available

Many associations like Jaguar Land Rover, Hispanso, Macropoloetc which increases

international presence

Dedicated engineering and R&D department

More than 60,000 employees

Highly diversified product portfolio

Weakness

Limited international presence

Sometimes faces alleged quality and durability issues

Not much customer engagement programs and activities

Opportunity

Expanding automobile market and available space for competitors

Increasing per capita income and purchasing capability of potential customer base

Leveraging customer engagement experience to acquire new customers

Leveraging mergers and acquisitions to acquire newer technology

Increasing the distribution and service network in various countries

Threats

Increasing fuel costs

Competition from other big automobile giants

Competitive products offering same level features at a lesser price

Product innovations and frugal engineering by competitors

Competitors

Ford

Toyota

Hyundai

Maruti Suzuki

Honda

Chevrolet

Fiat

BUSINESS STRATEGY

OF

TATA KIWIOO

In t r o d u c t i o n Of Tata Kiwioo

The Tata Kiwioo is engine, 3meters long, four-passenger city car built by Tata motors, aimed

primarily at the New Zealand market. The car is very fuel efficient, achieving around 26 kilometers

per liter on the highway and around 22kilometers per liter in the city. The car has a price ago just

Rs.1lakhthe same price as the DVD player in alexia. Hence making it easily affordable for a middle

class family. Tata Kiwioo is a dream comes true for an average New Zealand. Now the medium

class people can also have and enjoy the ride of four wheeler.

The car has achieved its low price by

minimizing cost on unnecessary,

luxuries, the basic Kiwioo comes

without front and rear fog lights,

without a heater or air conditioning,

without anti-lock brakes, only one single wind screen wiper, manually operated windows, manual

steering with no air bags, tiny 12” wheels, plastic body parts joined with adhesive instead of more

conventional metal and welding.

In addition, Tata has come up with practical ways to reduce car weight and thereby trim down the

overall cost. It uses comparatively small and light engine, a 623cc two-cylinder petrol engine

made of aluminum, unlike conventional engines which are made out of cast-iron. The engine of

Tata Kiwioo is strategically place at the back of the car leaving the front section for luggage, that

too with the capacity of a briefcase.

This is the most significant element in bringing down the weight and the overall cost of the car.

Other factors that contribute towards the weight reduction are the usage of deep steering wheel

tubes, plastic body panels and smaller tubeless tires. As are suit of them cuttings, Tata Kiwioo

weighs only about 590kg.

Lesser weight and fewer parts mean lesser a material land lower cost for Tata Kiwioo. The

manufacturers of the Tata Kiwioo Car are aiming to provide an affordable mode of transport to

their initial target market of lower income families in New Zealand.

The Organization and Management Team

The management team for Tata Kiwioo is a diverse group with strong skills in technology,

marketing and sales, finance and operations. Our primary criteria when filling these executive

positions was extraordinary past achievement.

Key Players

John Smith – CEO

Mr. Smith brings more than 25 years of marketing and executive management expertise in growing

businesses at leading companies. Immediately prior to Tata Kiwioo Mr. Smith was CEO of New

One Corporation. While there he led the worldwide widget marketing group, a multi- billion dollar

enterprise that is currently ranked first in its industry. Mr. Smith also successfully reorganized the

company, streamlining operations and improving profitability.

Mr. Smith had previously spent seven years at Future, Inc. as COO. He was responsible for the

development and launch of numerous successful products in growing markets and new

business categories for Future. He helped drive revenues from more than $3 billion to more than

$12 billion. Under his guidance, the company was named the most-respected brand names in

America in 1996 and 1997. He holds both a Bachelor of Science in Industrial Engineering and a

Bachelor of Science in Management from Northwestern.

Fred Stone – COO

Fred Stone was brought in a COO in January 2008. As COO, Mr. Stone’s mission is to establish

Tata Kiwioo’s leadership in the worldwide market. Mr. Stone was most recently senior vice

president of the global customer service organization at Gravel, Inc. His responsibilities included

customer service for all of Gravel’s Large Boulder Operations. Prior to his worldwide service role,

Mr. Stone was responsible for Gravel’s worldwide Enterprise Sales and Service organization

Mr. Stone has held a variety of sales and marketing management positions at including vice

president of Gravel’s North America System Sales, vice president and general manager for Gravel’s

boulder networking product group, and a director of marketing with responsibility for key gravel

product lines.

Mr. Stone holds an MBA from the University of North Carolina at Chapel Hill and a degree in

Business, with honors, from Michigan State University.

Bob VP of Product Development

Bob White was named to the Tata Kiwioo, Inc. executive team in August 2007, as VP of Business

Development. A 13-year veteran of SIMs Corporation, Mr. White was most recently chief software

engineer with SIMs' global development team. Prior to his worldwide development role, Mr. White

was responsible for SIMs’ worldwide business development group.

He has held a variety of engineering management positions other Fortune 500 companies, including

vice president of development at North America Car Sales with responsibility for key network

communication product lines.

Mr. White do holds an MBA from the University of California at Berkeley and a degree in

Business, with honors, from San Jose State University.

Kate Brown –VP of Marketing

Kate Brown is Tata Kiwioo’s VP of Marketing. She joined after nine years at OFFON, Inc., where

she served most recently as Senior Marketing Director. At OFFON, she was responsible for creating

new strategic partnerships and also for creating brand awareness for a $500 million joint venture

between Act, 1business, and others.

Previously, she served as Vice President at JKL, managing regional business development,

marketing and sales teams. Brown also did marketing and consulting for BBB and DDE consulting.

Brown holds an MBA degree from the Duke University.

Johan Bill – VP of Finance

Johan Bill joined Tata Kiwioo, Inc. as Vice President of Finance in September 2008. He manages

the company's finances and has established the financial systems. He worked with his former

employer, Wings, for over 12 years, holding numerous executive finance management positions as

Wings grew from a $200 million to a $2 billion company.

Most recently working as Controller of Wings, he was an integral player in executing and

integrating numerous acquisitions. He also spearheaded the development of the cash management

and capital infrastructure, and streamlined the financial planning process which led to significant

improvements in the internal systems architecture.

Mr. Bill has a diverse financial background, with experience at both start-up and large corporations.

He graduated Summa Cum Laude from Berkley with a degree in Accounting. He also holds an

MBA from Santa Clara University.

The relationship between the Board, the Committees and the senior management functions is

illustrated below:

Staffing Costs

(* 20% added for employee benefits)

(These are salary levels where we will be at the end of year one.)

Title Salary Benefits*

CEO 228,000 273,600

COO 180,000 216,000

VP of Product Development 100,000 120,000

VP Marketing 80,000 96,000

VP Finance 100,000 120,000

Management Committee 40,200 - 51,200 48,240 - 61,440

Engineering Committee 40,200 - 51,200 48,240 - 61,440

Finance Committee 40,200 - 51,200 48,240 - 61,440

Sales Committee 46,000 - 56,000 55,200 - 67,200

Operation Committee 19,400 - 22,400 23,280 - 26,880

Total 874,000 - 920,000 1,048,800 - 1,104,000

The Revenue Model

The way Tata Kiwioo raise funds include several aspects. Those aspects are detailed in the as

follows.

Selling the cars to clients

This activity is the first revenue flow of the project. The first targeted market is the New Zealand

one. The cars deliveries have started in July 2009. There are also project to extend the market to

Malaysia, the rest of Asia, Europe, Africa and South America, starting in 2011.

Bank Services

Tata KIWIOO have sign contract with New Zealand Banks in order to allow low income people to

get loans at low interests. Therefore, they could afford booking for their Tata Kiwioo. In that

contract, Tata Kiwioo and the bank all take advantages.

Maintenance Services

The Tata Kiwioo project includes a maintenance department. In fact, the customers will be offered

maintenance services at a fix price per month. Those services will be extremely competitive and

cheap as the car itself.

Advertising

Tata Kiwioo has been making a lot of advertisement in a lot of countries. As Tata Kiwioo has

become a famous trade, some channel will allow Tata Kiwioo Advertisement to be displayed,

increasing the channel audience. In addition, Tata Motors will take advantage of sweepstakes

organized in order to promote the car. Those events always bring to the company both publicity

and money.

Merchandising

There are a lot of product that have been manufactured in order to promote the Tata Kiwioo,

namely hats and cups. The company will therefore sell that product and make money benefits

from them.

Making franchises

The development of Tata Kiwioo started 6 years ago and has led to the production of an extremely

efficient car as far as pollution and gas consumption are concerned. The technology used could be

sold to other companies as Licenses, leading to funds raise.

Distributors In addition, Tata Kiwioo have planned to use Distributors to make its product easily

available to the New Zealand population. Therefore those distributors will pay royalties to Tata

Kiwioo after selling each car.

The Market

Tata Kiwioo’s launch could expand the New Zealand car market by 65%, according to rating

agency CRISIL. (Credit Rating Information Services of India Limited)

The low price makes the car affordable for families with incomes of 1,500 Euro (Rs.100, 000) per

annum, the agency said. The increase in the market is expected to push up car sales by 20% over the

previous year. “The unveiling of Tata Kiwioo, the cheapest car in the world, triggers an important

event in the car market. Based on the statement by company officials, CRISIL Research estimates

the consumer price of the car at around 1,900 Euro (Rs. 130,000). This brings down the cost of

ownership of an entry level car in New Zealand by 30%.

The New Zealand mass who has dreamt of

buying a car can enjoy the launch as it is now

affordable to most middle class families.

According to a rough estimate the average

income of middle class has gone up in recent

years. Currently the New Zealand economy is expanding at the rate of 9% which is second fastest

growing economy in the world after china and per capita income has increase two fold in past 10

years. This has perhaps left more disposable income in the hands of New Zealand consumers. The

banks providing various types of loans and credit facilities are also a major reason for consumerism.

So the launch is, overall beneficial for New Zealand consumers and the economy.

Keeping in mind that the Tata Kiwioo was envisioned as the four wheelers for those who can only

afford two wheelers, due to its affordable price Kiwioo's impact on two wheelers sales has been

widely debated, Kiwioo will also affect sales of higher priced Cars or will motivate competitors to

reduce the prices resulting lowered margins for rest of the industry.

As the Kiwioo was conceived and designed around introducing the automobile to a sector of the

population who are currently using eco-friendly bicycles and motorcycles, environmentalists are

concerned that its extraordinarily low price might lead to mass motorization in countries like New

Zealand and therefore possibly aggravate pollution as well as increase the demand for oil.

The ecology focused German newspaper Die Tageszeitung feels that such concerns are

"inappropriate" as the Tata Kiwioo has lower emissions compared to the average Volkswagen, and

that developing countries shouldn't be denied the right to motorized mobility when industrialized

countries should be looking to reduce their emissions and usage of cars. Die Walt’s reports that the

car conforms to environmental protection, and will have the lowest emissions in New Zealand.

Co m p e t i t o r s

A t N a t io na l L e ve l

The closest competitor of the upcoming "Kiwioo Car "is Maruti800 which is double of its price. A

small car from Maruti Suzuki, which is priced higher than Tata Kiwioo. Despite esix percent

shorter, Tata Kiwioo has about twenty one percent more interior spaces than the Maruti 800due to

its larger height and width. Suzuki is aware of the gap and is working arduously to improve its

current care lineup. It will focus on achieving the practicality and efficiency of Tata Kiwioo

without compromising on safety and quality. However, Maruti Suzuki is not in a position to

reduce the price of Maruti800 just forth ease of competing with Tata Kiwioo.

Bajaj auto is also developing a low cost car (code-named ULC) tagged 2,000Eurotogether with

Renault- Nissan corrival Tata Kiwioo. This ultra-low cost car is expected to be launched in New

Zealand in 2012.The companies claim that the new ULC car will consume less fuel than any other

four-wheeler on the urban roads .Thus the car is expected to take on the Tata Kiwioo, the cheapest

car being produced and marketed by Tata Motors in the country.

At International Level

The Toyota IQ could be a competitor of Tata Kiwioo at international level because it is the world’s

smallest four seated car. Though the car is a small car since it gives the feel of a large car since it

has the power of a Toyota. But the Kiwioo’s price and design is much better than the Toyota IQ.

Another car that could be a competitor will be Mitsubishi I. But there again people may opt for the

Kiwioo because of the mileage it provides if people are looking for a fuel efficient car in that

category. The Toyota aygo super mini could also compete with this car.

China's Cherry QQ could also be considered as a strong competitor who is expected to gain

foothold in the New Zealand market in 2008. The Cherry is expected to retail about 2,600 Euro. But

when compared to any of these above mentioned international models the Tata Kiwioo Europaa

model stands out.

Hyundai is another company taking Tata Kiwioo seriously. Hyundai plans to launch a new model in

the market which would be priced cheaper than their current cheapest model- Santro. This new car

would not be released at least until 2011, and is expected to be manufactured in Hyundai’s new

factory.

Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids, and some

environmentalists argue getting prices down on these technologies is where efforts should be

concentrated. Inexpensive and eco-friendly electric-cars like Tara Tiny, Or Eva Super (both

reportedly even cheaper than Tata Kiwioo) and REVA pose even more significant danger to

Kiwioo.

The design, mileage, space efficiency, maneuverability of the Tata Kiwioo Europa is better when

compared to the others. Also in terms of being less palliative the Tata Kiwioo Europa is a very

environment friendly car. May be it could be found a bit lacking in power and the top speed. But

Tata Kiwioo Europa is set to take entire Europe and the rest of the world by storm and is sure to

give its competitors a run for their money.

Key Benefits to the Customers

Affordable

Tata Kiwioo is priced around 1 Lakh rupees or 2, 000 Euro. This price tag is almost half the price of

the current cheapest car in New Zealand, Maruti Suzuki 800, which is priced around 2 Lakhs. Tata

Kiwioo is ideal for two-wheeler owners looking forward to switch to 4 wheelers. It’s also suitable

for women, who would find driving a car safer than driving a scooter.

Fuel Efficient

Tata KIWIOO has a mileage of 21.97 kilometer per liter, under city road conditions, and 25.97

km/L on highways. This makes Tata Kiwioo a fuel efficient vehicle, which will save money in the

long-term. This mileage comes with a powerful engine of 623 cc with a maximum speed of 105

Kilometers per hour.

Safe

Tata Kiwioo has gone through the full frontal crash test according to the standard norms. Although

it is 8% smaller than Maruti 800 (the current cheapest car in New Zealand), its 21% more spacious.

It is a 5-seater, with an ability to carry heavy loads. According to Auto car New Zealand, though

Tata Kiwioo weighs a mere 600 kg, it’s robust and well-screwed together.

Environment Friendly

If you think Tata Kiwioo would increase pollution, think again. Tata Kiwioo emits less carbon than

two-wheelers. It also meets emission norms of BS II, III, and IV which are Euro II, II, and IV

equivalent.

Reliable As Compared To Other Transport Ways

Tata Kiwioo is much better than most of the other transport ways. In comparison to taxis in New

Zealand it is much cheaper and good at looks.

In comparison to rickshaw it is comfortable. It's also better with environment and speed if we

compare to rickshaw. It's also cheaper in comparison to rickshaw. Saves lot of energy which with

taxis and rickshaws is completely wasted .In comparison to rickshaw at least Kiwioo will protect in

rains.

The Marketing Plan

The Marketing Strategy:

This section discusses the different aspects of the marketing strategy modified by Tata for their

Kiwioo car.

The People’s car:

Well before the car is launched, Tata-Kiwioo was already with the people of New Zealand by its

logo called “the people’s car”. This is how it all started, the advertisement for the people of New

Zealand. Can one buy a car with 1-lakh rupees; yes we can in couple of years.

This advertisement made a huge impression on the automobile market, as almost the whole middle

class of New Zealand started dreaming of their own car. This should be considered in the view that

in New Zealand, the average car price was 3 to 4 times greater than what Tata offered. Also the fact

that rupees

100 K was affordable compared to 300 K or 400 K rupees. This soon became a discussion point in

New Zealand. So instead of providing the advertisement at the launch of new idea or product,

Kiwioo was the lucky to get the free publicity thanks to the hype that was created by the first move

made by Tata.

The Buzz

As stated above, once it became “the discussion point” in a country of population of 1 billion, Tata

has no worries of marketing for some time. The TV channels, the automobile industry experts, the

investors, the people. Who not; every one discussing “Is it really possible”. This first advertisement

was a huge success, and it perhaps decreased the marketing cost of Tata. In fact, people started

asking the question, “When can we buy the car”. The buzz in the market, “Tata Kiwioo”

Auto Explanation 2007

The first introduction of the Kiwioo with the public was made in the auto exposition in2007 in

home country in Delhi. There had been discussion in the market that “Is it really possible”. The

answer was the display of the prototype of the car.

Now this at once ended few of the rumors in the market; and the attention was switched to technical

details of the car. So the exposition proved to be the first grand success point in the marketing of the

Kiwioo car, if the first advertisement is considered as the buzz. The situation turned out, “Yes, it is

possible”.

Across the borders

It was the time to show the world, that not only the high-tech cars are the best sellers in the market

but there are people who are looking for the cheapest car on earth by a big margin. The car was in

78-th Geneva Motor Show 2008.

This helped to make the image of car as a good working replacement to the existing ones back

home in New Zealand. The participation in the Motor shows was widely discussed inside and

outside New Zealand helping the Tata experts to better understand, where they stood to the worlds

expectation and what the things to be done are.

This also changed the face of the New Zealand automobile industry in the world, and now people

were amazed with the fact sheet of the Kiwioo car.

Tata Motor Showrooms

The nationwide motor shows were organized by Tata to bring the whole class of society to the

shows that they have never attended in their lives rather most of them never thought of going to

such a show. The car became a need as compared to a luxury before.

On The web

Considering the needs of the 21st century, the website was launched in the beginning. The website

is quite comprehensive yet it provides all the answers to the questions being asked since the start of

the project. The marketing team has also put a good effort to keep the website simple and easy to

use and understand.

It was really a vital requirement considering the intended users / buyers of the product. Just to make

a point, that how necessary and successful the website and the car itself are “more than 50 Million

hits in the first year”. Now one can find the Kiwioo on Facebook, orkut and twitter.

The One Form Booking

Tata has been successful in this important aspect of the selling by the virtue of some good

marketing of the booking of the car. Since there are millions of the interested buyers of the product,

a transparent and easy booking procedure was required to keep the faith of customers in Tata.

The hype is so much that Tata can’t provide the demand for the next many years, so the booking

process became a focal discussion point in the market. Tata chose the Internet booking as well as

the booking by the agents. In any case, the intended buyer is to fill one single form. The lucky

buyers are chosen by a random draw, so Kiwioo is popular, isn’t it.

Bank Financing

Tata is keeping its promise of “people’s car” by providing bank car financing. Despite the fact that

Kiwioo has more customers than the production line can produce in next few years at the moment,

Kiwioo decided to make the way for the people who can’t afford to pay the price with the booking

of the car. The 15 major banks including the state bank of New Zealand have been signed with the

Tata to finance the low income people.

Now how much one has to pay for booking a car, it’s beyond your imagination holds your seat, its

3000 New Zealand Rupees that makes around 50 Euros. Now how does this come into the

marketing strategy of the Kiwioo, in fact Tata has closed the doors for any competitor by not letting

go any one in the New Zealand who dreams of a personal car and can’t get it. The customer loyalty

is to grow with such moves, especially when Tata has so many buyers at the moment.

Key Marketing Features

Apart from the buzz, the financing issue etc. there has been some more serious work as well. The

Tata is advertising some of the features of the Kiwioo that make it comfortable, usable and not only

affordable. Some of the features are discussed here:

The low maintenance is a key issue, one can buy a car or get bank finance but one has to maintain

the car by oneself in a country where insurances are high.

The low maintenance makes Kiwioo an automatic choice for the ones who even normally travel on

motorcycles. The small size of the car gives a big advantage of parking in the urban New Zealand,

where it’s getting hard to find the places round the clock.

Kiwioo is not only cheap; it’s so cheap when it comes to the fuel consumption. The fuel

consumption is far better than the 1000 cc cars which are normally used by the low income New

Zealand.

The Kiwioo is environmental friendly as well, and fulfills all the requirements of the international

and national laws. The Cheapest is the tag that one can’t take from Kiwioo for few coming years.

The stylish, the car doesn’t look like a rickshaw (a local transport), it’s not that far away from the

stylish 100 times expensive cars. The wide color range provides the choice a colorful New Zealand

needs, without this forget about selling much.

“A promise is a promise”

Here we go; the car was finally launched in the market with the said logo. The promise has been

made. The launch is nationwide, so Kiwioo will be seen throughout the country, and will find itself

in 1.2 Billion people.

Warranty

Tata is providing a 18 months Or 24 K Kilometers warranty, it can’t be considered as very good

compared to what one gets at the international level but it is still not bad and it sounds good once it

is considered in a global package of price, use, fuel consumption etc.

The Kiwioo brand

Kiwioo has itself become a brand now, and one can find the Kiwioo phone, Kiwioo watch. The

products are available on and offline. These products have of course added to the popularization of

already well known Kiwioo.

The future

Kiwioo will not be limited to New Zealand, the international marketing has started. The

advertisements for Malaysia are already underway and an early launch is expected while the Kiwioo

Europa launch is expected in 2012.

The Manufacturing Plan

Development began in: 2014

Scheduled to roll out in: 2017

To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and

sought new design approaches from suppliers. Many components of the Kiwioo are made in

Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other

technologies.

The Kiwioo was originally to have been manufactured at a new factory in:

The Tata House Building,

East Tamaki, Auckland,

New Zealand

And a mother plant has been proposed for:

Pukekohe Branch

Botany Branch

Manukau Branch

The company will bank on existing dealer network for Kiwioo initially. The new Kiwioo Plant

could have a capacity of 500,000 units, compared to 300,000 for Manukau Branch.

Cost cutting features

The Kiwioo's trunk does not open. Instead, the rear seats can be folded down to access. It has a

single windscreen wiper instead of the usual pair. It has no power steering. It has no ABS.(Anti-lock

braking system) In Base model it has three lug nuts on the wheels instead of four. It has only one

side view mirror.

It has 12" wheels. Plastic body parts joined with glue rather than welding. A two-cylinder 623 c.c.

engine. Tata initially targeted the vehicle as "the least expensive production car in the world"—

aiming for a starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of

22March 2009) 6 years ago, despite rapidly rising material prices at the time.

As of August 2008, material costs had risen from 13% to 23% over the car’s development, and Tata

faced the choice of:

Introducing the car with an artificially low price through government subsidies and tax- breaks.

Forgoing profit on the car. Using vertical-integration to artificially boost profits on cars at the

expense of their materials industries. Partially using inexpensive polymers or biodegradable plastics

instead of a full metal- body raising the price of the car.

The Financial Plan

Investment funding is needed for capital expenses and operating expenses as can be observed by the

following financial statements

BALANCE SHEET

(Euro'000's)Fixed AssetsTangible assets

Year1

15350

Year2

16118

Year3

16716

Investments 1000 1000 1000

19850 20618 21216

Current AssetsAccounts Receivable 3785 4663 5290

Inventory 2744 3372 3873

CashatBank 0 120 550

NetCurrentAssets 6529 8035 9163

LiabilitiesAccounts Payable 5000 4500 4000

Long-term debt 0 150 750

Total Liabilities 5000 4650 4750

TotalAssetslessCurrentLiabilities 21379 24003 25629

INCOME STATEMENT

(Euro'000's) Year1 Year2 Year3Sales 20000 23000 25500

Cost of Sales 17500 19000 21000Gross Profit 2500 4000 4500

Sales,General&Administration Expense

3000 3000 3000

Operating Profit -500 1000 1500

Taxation on Profit/(Loss) Profit/(Loss)after Taxation

0 0 300

-500 1000 1200

Dividends 137 120 103Paid & Proposed Retained Profit/- 637 880 1 097(Deficit)

Cash Flow Statement

(Euro'000's)

Opening Cash

Year1

0

Year2

-2504

Year3

-2998

Cash from Operations -2004 -644 992

Increases in AssetsIncreases in Liabilities

-55005000

-15001650

-1200100

Closing Cash -2504 -2998 -3106

The Risk & Possibility Plan

Risks Exposure:

Low impact on the market resulting in slow sales and less than expected cash flow

Unexpected and excessive cost increase compared to the forecasted sales

Fluctuations and industry overcapacity

Overly aggressive and debilitating actions by competitors (effort of depreciation)

Work stoppages and other interruptions of supply at TATA Motors Ltd. or any key suppliers

The discovery of defects in vehicles resulting in delays of new models and recall campaigns

A credit rating downgrade

The increased cost of fuel

Changes in economic conditions

Labor strikes or work stoppages

Changes in laws, regulations or tax rates

The ability of the company to achieve reductions of cost and employment levels.

Contingency Results:

1) The Company has a comprehensive system of control, focused on mitigation of risks

To ensure achievement of objectives. The risks are assessed on an

Ongoing basis and controls are designed to respond to risk throughout the Company.

2) Assets’ liquidation to cover liabilities

3) The product cannot support itself on ongoing basis.

Conclusion

Tata Kiwioo achieves what most people believed impossible finished originality and creativity. It is

a no additions car that serves the needs of the general public and New Zealand's unacceptable road

conditions and dishonorable traffic.

In this sense, the production and launch of Tata Kiwioo can be called a revolution - not only to the

consumers but also to industry players. Other players are contemplating on their own versions of

low cost alternatives as a result of the overwhelming response from the New Zealand public and all

over the world. Moreover, their skepticism is met with a surprise upon seeing the model in action.

The next step forward for Tata is to address the possible concerns with regard to ownership in order

for customers to grasp the value proposition that Tata is trying to broadcast. This includes scattering

all perceptions of shortcomings normally associated with a low-cost car through dynamic testing on

real roads using real users.

The basic rule of customer service still applies. Tata Kiwioo should meet the consumer's

expectations by providing a reliable and modestly safe vehicle to drive. The car, with its massive

acknowledgment gained even before its launch, is expected to fulfill the dreams of company.