Automobiles Financial Analysis

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Automobiles Financial Analysis

Financial swot analysis of Chrysler and General Motors

Swot analysis is a tool used by companies to check on their status internally and externally and also check if their products and the business is able to progress successfully with its intended actions towards becoming more profitable. Strengths and weaknesses are internal factors while threats and opportunities are external factors. The two companies are car companies.

Chrysler

The company is involved in the production of luxury cars for urban upper middle class and its parent company is fiat.

Strengths

Since its formation in 1925, the company has a strong brand legacy

Manufactured and recorded more than 2 million cars per year

Investment in ecofriendly and hybrid cars

Wide variety of cars like sedans, vans, automotive parts, SUVs and commercial vehicles

A leading brand based out of the United States

Weaknesses

Strong dependence on American market unlike other brands spread throughout the world

Very stiff competition thus a thin market

Opportunities

Partnerships and acquisition of companies can benefit Chrysler to a great extent

Increasing demand for electric vehicles (EVS) can be good for Chrysler

Selling in new markets and geographical locations can be good for Chrysler

Threats

Chrysler has strong and almost sole reliance on north American market

Loss of business margins due to strong competition

Fluctuation and economic recession affect the global operations of the company

General Motors

General Motors was founded in 1908 and currently it serves more than 140 countries. Its headquarters are in Detroit Michigan and by 2016 the company had 215,000 employees.

Strengths

Strong position in automotive industry in terms of market

The company has strict and good environmental and sustainability measures and policies

The cars are safe and they are eco-friendly

The company has joint ventures with chinese automotive companies

Weaknesses

Over-dependence on the US alone for revenue

Major reliance on pick-up trucks and SUVs for growth

Brand awareness is also a problem

Opportunities

Due to low fuel the demand for pickup trucks is increasing

Very high demand for autonomous vehicles which General Motors are working on

Perfect frequency and timing of the new models.

Threats

Very stiff competition in the market

Increased government regulations increase the cost of production

There are predictions that united states locomotive industry is slowing down and collapsing.

Ford Motors Financial Report

Taken from FInancial Summary – Ford Motor Company (weebly.com)Chrysler automobiles

Taken from Stellantis_2020_12_31_Annual_Report.pdfGeneral Motors

Taken from https://sec.report/Document/0000804269-19-000052/References

Balcet, G., Commisso, G., & Calabrese, G. (2013). Structuring and restructuring Fiat-Chrysler: can two weak carmakers jointly survive in the new automotive arena?. International Journal of Automotive Technology and Management, 13(2), 183-197.

Rehnberg, P. (2021). Bootleggers and Baptists in American Fuel Economy Regulation–A qualitative content analysis of American automakers’ attitudes towards CAFE-standards.

Shire, K. (2019). 5. Bargaining Regimes and the Social Reorganization of Production: The Case of General Motors in Austria and Germany. In Workplace Industrial Relations and the Global Challenge (pp. 137-156). Cornell University Press.

Warburton, A. J. (2009). Understanding the bankruptcies of Chrysler and General Motors: a primer. Syracuse L. Rev., 60, 531.