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Automotive and Truck Division Market Trends

explanatory Essay
1492 words
1492 words
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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.

In this essay, the author

  • Explains that eaton corporation is divided into electrical, truck, automotive, and fluid power. impacts of market structure, technology, prices, competitors, cost structure and benefits will be discussed throughout the paper.
  • Explains eaton's automotive division provides 90% to domestic oem’s and 10% to the foreign market. toyota took over the domestic market share from gm and ford in august.
  • Explains the impact of new companies entering the market on domestic automotive sales. chery and geely are prime examples of automotive companies in china planning on importing cars to the u.s.
  • Explains that eaton's top priority is to create vehicles that people want to drive, a vehicle with the best possible performance, efficiency, and control.
  • Explains the law of diminishing marginal productivity. eaton has key metrics that are measured monthly. on time delivery, scrap and productivity are some of the metrics.
  • Opines that eaton offers competitive wages and benefits, including a pension plan, matched 401k, tuition reimbursement, competitive medical and dental insurance, and paid vacation.
  • Explains that the products produced in the automotive division at eaton corporation are elastic. a shift in demand has been seen due to an increase of demand for foreign cars.
  • Explains that government regulations have an impact on how businesses can run. regulations have been put in place for equal opportunity rights, labor laws, and safety.
  • Explains that borg warner, dana and delphi are the most competitive companies within the automotive division. eaton believes in competitive gain through advanced performance.
  • Explains that eaton's automotive and truck division has seen a decline in sales for the year of 2006 and 2007 due to high gasoline prices, and toyota taking over the market share.
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