Car companies have been buying and selling other companies for decades in order to build up their portfolio and increase their global presence. The volatile auto industry necessitates, not only nimble acquisitions, but also timely divestments in order to remain competitive. In recent years automotive companies seeking to establish, expand or refine their product offerings, have made deals covering a wide range of vehicles – from sedans to SUVs, vans and electric vehicles. In this article, we will explore the makeup of the world’s major car companies and which ones they own.
One of the major players in the auto industry is Volkswagen Group, and their portfolio is the largest in terms of vehicle production. VW Group owns 12 brands in total – specifically, AUDI, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen. Of those, SEAT, Skoda, and VW are the major players in Europe. This group’s production capabilities span from city cars to luxury vehicles and also some of the highest performing sports cars. In addition, the group’s electric brand is the popular ID.3.
Toyota Motor Corporation is another leader in the global auto industry. Although not as diversified as VW Group, Toyota Motor Corporation owns four brands – Daihatsu, Lexus, Hino, and Toyota. In combination they offer vehicles of various sizes, ranging from eco-friendly subcompacts to luxurious SUVs. While not as famous as its Japanese rivals, Daihatsu is dedicated to the development of small cars and SUVs.
It wouldn’t be right to discuss auto companies without mentioning Ford Motor Company. Founded in 1903, it has made a name for itself across the world, particularly in its home market of the United States. Ford Motor Company owns Lincoln and Ford. The company produces a range of vehicles from sedans and SUV’s to light trucks and commercial vehicles.
The Hyundai Motor Group rounds off the list of the world’s top four automotive companies. It is the second-largest automotive group in terms of production and is highly diverse, covering cars and commercial vehicles. The group owns Kia, Hyundai, and Genesis, and owns a 30% stake in Mobis, making it the largest shareholder of the company. Hyundai and Kia have become strong players in the global auto market in recent years, with Hyundai’s vehicles becoming more popular in North America.
There are of course other companies worth mentioning, including Fiat Chrysler Automobiles, Renault-Nissan-Mitsubishi Alliance and General Motors. While smaller than the four mentioned above, each of those companies has its own portfolio and occupies a certain place in the industry.
Fiat Chrysler Automobiles
Fiat Chrysler Automobiles (FCA) owns a wide range of car brands, including Alfa Romeo, Fiat, Jeep, Dodge, Ram, Maserati and Lancia. The company has a presence in Europe, Latin America and North America, and its portfolio is diverse, from subcompacts to SUVs and sports cars.
FCA has decided to spin off its luxury auto brands, Maserati and Alfa Romeo, in a bid to focus more on its core offerings of Jeep, Dodge, Ram and Fiat. This could potentially lead to larger investments in research and development and the advancement of their products.
Renault-Nissan-Mitsubishi Alliance
The Renault-Nissan-Mitsubishi Alliance is a global automotive partnership between the Japanese carmakers Nissan and Mitsubishi and the French carmaker Renault. The alliance has helped cement each partner’s place on the world market, particularly Mitsubishi whose sales have exponentially increased. The alliance owns the mainstream brands Nissan, Renault, and Mitsubishi, and has recently been joined by Mitsubishi Motors and Nissan Motor Co.
The partnership has widened the scope of each partner, allowing them to explore new areas of expertise and leveraging their collective resources. This has resulted in increasingly advanced products from each company.
General Motors
General Motors (GM) has several renowned brands under its umbrella, including Cadillac, Chevrolet, and Buick. Aside from their domestic market in the United States, GM also has strong presence in China, the world’s largest auto market. GM also has a substantial presence in the EU, where they have significant shares in several car companies, such as Opel and Vauxhall, with their brands being sold in the region.
GM is making significant investments in its electrification technology and has committed to releasing 20 new EVs globally by 2023. This would help them compete more efficiently with rival car companies who are investing heavily in electric technology.
Implications of Ownership Structure in the Auto Industry
The structure of car companies in terms of their ownership has a direct impact on their production capabilities and ultimately, their success. Companies that have the power and resources of a larger group behind them, such as Volkswagen Group or General Motors, are able to outpace smaller car makers that operate on their own. The ability to draw from a larger pool of resources, both human and financial, gives the group the edge.
The car industry is very competitive and companies must continually invest in R&D, innovation and marketing in order to stay ahead of the competition. This is why it’s so important for car companies to seek out partnerships with other brands and build up their portfolio, giving them access to the resources necessary to remain competitive in the ever-evolving automotive industry.
Convergence of Automobile Segments
The convergence of segments likely means more alliances and global partnerships between car companies. Automakers are now seeking out partners to help them develop more advanced drivers-assistance and electric-vehicle technology. The demand for electric vehicles is ever increasing, and car makers need to collaborate in order to remain competitive and keep up with the industry pace.
The rapidly advancing technology means that electric cars, once the domain of luxury automakers are now a realistic option for mainstream consumers. This shift is resulting in partnerships between mainstream and luxury automakers to develop affordable electric vehicles. This means that electric vehicles are no longer limited to luxury brands but are becoming more accessible as automakers seek to capitalize on the trend.
Value of OEMs and 3rd Party Manufactures
Original Equipment Manufacturers (OEMs) and Third Party Manufactures (TPMs) are integral to the carmaking process and help car companies reduce costs while ensuring they are producing quality vehicles. Part of the reason why some car makers have such excellent portfolios is due to working with the right OEMs and TPMs. OEMs provide the needed parts to assemble a vehicle and TPMs handle production duties such as painting, assembly and welding. Working with the right TPMs and OEMs helps car makers build the best quality products for their customers.
OEMs and TPMs give car makers flexibility in terms of cost and production. Car makers can outsource certain parts of the production process to reduce costs while maintaining a certain level of quality. This has enabled car makers to focus on more technology-intensive processes such as electric vehicles and autonomous driving.
Evolution of Electric Technology
The global auto industry is quickly shifting its focus towards electric vehicles and driver assistance technology. Automakers have been investing heavily in electric powertrains, battery technology and autonomous driving over the last few years in order to meet customer demands. This shift means that companies are seeking out partnerships in order to research new technologies and develop the best electric vehicles.
Electric-vehicle technology is becoming more advanced, allowing automakers to reduce their production costs and increase their profits. This has made electric vehicles more attractive to customers as the cost of ownership can be lower. As electric vehicles become more mainstream, automakers will continue to seek out partnerships and collaborations in order to develop the best electric vehicles.
Challenges for Electric Vehicle Development
Despite the fact that electric vehicle technology is becoming more advanced, the car-making industry still faces hurdles in terms of scale and cost. The development process for electric vehicles is still cost-prohibitive for many car makers and scaling up production has been difficult. Additionally, the supply chain for electric vehicles has yet to be fully developed and established, making it harder for automakers to acquire the needed resources.
In order to address these issues, carmakers must develop more efficient production methods, reduce costs, and establish a well-defined supply chain. Additionally, car makers must collaborate with the appropriate groups in order to develop the best electric vehicles. This includes partnerships with TPMs and OEMs, as well as other automakers and suppliers.
The auto industry is shifting fast, and automakers are quickly having to adapt in order to remain competitive. As such, alliances and partnerships between car makers will become increasingly necessary in order for them to develop the best products. This is already evident as several of the world’s major automakers already have collaborations in place or are actively seeking out new partnerships and alliances in order to stay ahead of the competition.
