Business Competition about Automotive Industry

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Automotive industry competition is quite tight. In order to succeed in this business, several ways are done by the manufacturer. In addition to developing products and other things that are internal, there is also an external way.

One of them is to create an automotive group consisting of various brands.
The process is different, there is a brand that is made from the top, directly by the parent company, some are acquired and become members of the group.

Lexus for example, he is a brand created by Toyota as a holding company, which is specialized to produce luxury cars. While in other cases, the entry of Mitsubishi to Nissan group is due to the acquisition process.

There are several advantages to being part of this automotive group. For example, between subsidiaries can exchange technology and share tasks to focus on a particular market, whether a small car or a luxury car. Can also share marketing distribution network.


The composition of one automotive group is also not always steady. Sometimes there is one brand entry, not infrequently there are also out for one reason or another.

Ferrari for example, at the end of 2015 and is no longer a member of the Fiat Chrysler group. As for the reason of separation because the parent company needs money to pay off the debts that accumulate.

The same thing also seems to be done Volkswagen (VW). They are rumored to be selling Ducati, Scania, and MAN truck brands. The sale was made to help VW Group cover the losses due to the Dieselgate scandal.