Automotive and Truck Division Market Trends

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Market trends that Eaton Corporation will be faced with will be reviewed and analyzed. Eaton Corporation is divided into Electrical, Truck, Automotive, and Fluid Power. I will focus on the automotive and truck division throughout this paper. Impacts of market structure, technology, prices, competitors, cost structure, benefits and price elasticity are some of the topics that will be discussed throughout the paper. The automotive division of Eaton Corporation is an OEM manufacturer for air, transmission and fuel management controls, automotive fluid connectors, engine air management systems, cylinder head modules, engine valves, lifters, limited-slip and locking differentials; clutches and brakes for industrial machines and golf grips. . Eaton’s automotive division provides 90% to domestic OEM’s and 10% to the foreign market. Eaton automotive produces OEM’s for GM and Ford. Toyota took over the domestic market share from GM and Ford in August of this year. Eaton’s market structure will change by targeting hybrid trucks that create new savings, efficiencies, and produce less pollution which are what trucking companies want says John Beering, director of global marketing for the Impacts of new companies entering the market are significantly decreasing the sales of domestic automotive sales. Chery and Geely are prime examples of automotive companies in China planning on importing cars to the U.S that will be priced under $10,000. Consumers will be thrilled, but it could be devastating to General Motors and Ford. New foreign automotive businesses entering the market in the near future will have a huge impact on domestic automotive businesses. Eaton produces OEM’s for Ford and GM trucks. The new business entering the automotive market is foreign cars. There will always be a demand for trucks. The demand for truck sales may decrease due to increase gasoline prices. Demand and Supply for domestic vehicles is going to decrease in the future. Increasing foreign car sales will impact domestic automakers by laying off more employees and shutting down more and more plants. Thousands of people have already lost jobs and thousands more will. Eaton has sold their mirror business and will continue to sell off more automotive businesses if sales do not increase sales by 14% every year. Eaton will have to purchase or win new business for foreign vehicles in the future. Eaton is currently doing 10% business with foreign vehicles and needs to increase foreign sales by 20% or more.

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