Need to create 3-4 PowerPoint Slides Correlating the data we have on the assignment and from the excel spread sheet to answer the page of what we need to know
Automotive Industry External Analysis MBA 6216 Ali, Salman* Escobar, Jose Mogrovejo, Bryan Randle, Miles Tamayo, Alejandro 1 Abstract This report contains an external analysis of the automotive industry including a PESTEL analysis, a five forces analysis, and a final assessment of the landscape for new entrants. 2 Contents PESTEL analysis ........................................................................................................................... 3 Porter’s Five Forces analysis ....................................................................................................... 9 Executive summaries and swot analyses of Chevy, GMC/Buick, Subaru, and Tesla .......... 14 Chevrolet .............................................................................................................................. 14 Buick/GMC .......................................................................................................................... 17 Subaru .................................................................................................................................. 18 Tesla ..................................................................................................................................... 20 Financial performance analysis..................................................................................................... 23 Table 1 Financial performance analysis ....................................................................................... 23 Strategic grouping map of the brands ...................................................................................... 24 Summary of Notes on Dealership Visits.................................................................................... 25 Future of the automobile industry............................................................................................. 29 References .................................................................................................................................... 33 3 PESTEL analysis Political There are several regulations placed upon the automotive industry in the United States. One such regulation involves emission levels in passenger vehicles and small trucks. The Environmental Protection Agency (EPA) proposed in August 2021, to revise its existing greenhouse gas (GHG) emissions standards starting with cars produced in 2023. If passed, these revisions promise a significant reduction in GHG emissions as well as other pollutants. (Regulations for Emissions from Vehicles and Engines, 2021) Carmakers will need to watch the progress of this policy closely to prepare for potential changes to how they manufacture cars in 2023. The U.S. also recently passed a bill that provides $52 billion to increase the country’s semiconductor manufacturing to stay competitive with China. (Kelly, 2021) There will be many mentions of semiconductors and microchips in this report because of the global shortage. Currently, car production has been impacted by the shortage of microchips, and it is likely to continue to be impacted for the near future because scaling up that kind of production takes time. Economical The U.S. economy continues to improve despite the ongoing presentation of new variants of Covid- 19. The U.S. Bureau of Labor Statistics reported an unemployment rate of 5.2 percent for the month of August with vehicle and vehicle part manufacturing accounting for 24,000 new jobs in the month. (News Release: The Employment Situation - August 2021, 2021) However, the average hourly wage for workers in the U.S. has dropped from $11.36 in July of 2020 to $11.22 in July of this year. (Monthly real average hourly earnings for all employees in the U.S. 2020/21, 2021) The current bank prime interest rate is holding steady at 3.25%. (Selected Interest Rates (Daily), 2021) 4 According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) for all items has increased 5.3% over the past 12 months. The indexes for gasoline and new and used car sales have increased more than all items average. The gasoline index rose 2.8% in August after rising 2.4% in July. The CPI for new cars is up 7.6% over 12 months with used car sales rising 31.9%. (News Release: Consumer Price Index - August 2021, 2021) This is likely due to the semiconductor shortage. Consumers can expect to pay even more for vehicle purchases in the months to come. Sociocultural In American culture, cars are a status symbol, and a driver’s choice of vehicle communicates far more than simply their feature preferences. A vehicle can