Showing posts with label quadruple. Show all posts
Showing posts with label quadruple. Show all posts

Tuesday, July 24, 2012

Navigation in vehicle sales will quadruple by 2019.

By Paul A. Eisenstein, number of cars, trucks and crossovers is sold with vehicle navigation systems the Detroit BureauThe in North America by 2019, according to a new study, is growing each year to quadruple to nearly 13 million new systems.
But that cannot be considered good news as it may seem, to traditional navigation system suppliers, such as Denso, Harman or TomTom, warns Boston-based strategy Analytics, Inc. It warns that high-tech companies like Apple, Google and Microsoft, "begin to fight for release" as they grow their own automotive business.

The good news is that future navigation systems, who provides them, are probably less expensive and significantly more features provide. More functionality, price, even a barrier to entry for many consumers - or was it led with aftermarket devices go, which can be purchased at a Costco for $100. And now, potential buyers have the chance, go with Smartphone navigation apps.
"The recent announcement by Apple with regard to its Automotive OEM partnerships and the extension of Apple's mapping efforts significantly the market could change in the vehicle", says Strategy Analytics senior analyst John Canali.

The penetration rate of the auto-navigation technology very differently from the market. Factory navigation systems are in the vicinity of ubiquitous in Japan, especially in the labyrinthine cities such as Tokyo. In the United States however, the technology had a slow start, and during the after market units have become popular Christmas gifts, factory installed systems have gained ground very much slower.

This begins to change. Some manufacturers have recognized that this price is a critical obstacle. Had to switch from low-volume, high profit margin strategy, Canali said they can sell far more navigation systems one which recognises, but to a lower profit per unit.
Ford, systems navigation, for example, now offers some models for less than $600. In fact, the basic hardware is car already in the and the driver pays the premium for software that contain a thumbnail view SD card.

Now be proposed legislation, the mandate would be, the use of back-up cameras should also help lower prices and sales, Canali, when most proposed the basic hardware, especially the in stroke video screen already installed vehicles in the most such legislation in force.

But Canali stressed the analyst notes that "really has extended the definition of navigation". "It is built not only the full screen, hard drive, or DVD-based system not in the dashboard."

Ford, for example, offers also a free service through its sync Infotainment System. There is a driver can call no video display but in a destination and an operator is there in the program. Will then be read by voice turn guidance. General Motors offers a similar feature "Offboard navigation" through its subsidiary OnStar as do quite a few other manufacturers. GM has new Chevrolet GogoLink the , a new smartphone app based nav system that says GM offer comprehensive navigation with traffic to less than the cost of traditional navigation.

Ford Sync system, as also KIA new information technology, both from Microsoft have been developed. The latest Audi models, such as for example the 2013 S5 sedan feature displays by Google Earth and Google StreetView images. Apple is now indeed always and even negotiations with a number of manufacturers, add a button "Siri" on the steering wheel, that the tech company's voice control software on an iPhone would be access directly. Among other things would allow a driver, easy questions to a nearby Cafe and have given the address automatically in the navigation system.

"In competition with these new players is difficult for established providers of navigation systems because the new players are well capitalised and can devote much more for research and development," Richard Robinson, Director of automotive and multimedia communications at Strategy Analytics.

The new study finds that global sales of car navigation systems of employee base 9,500 million in 2009 to 56 million by 2019 will jump. In North America volume of 1.80 million in the year to 3 million this year and 12.90 million annually by 2019 2009 an estimated increase. But at least from a percentage-based largest growth is being seen in China, Strategy Analytics forecasting sales of navigation only 355.000 in 2009 is 11.80 million 2018 reach.

Wednesday, May 16, 2012

Toyota turnaround: Quarterly earnings quadruple

CNBC's Phil LeBeau reports on how shares of Toyota Motor are faring against its rival auto companies.

By Paul A. Eisenstein, The Detroit Bureau
Toyota Motor Co. wrapped up one of the worst fiscal year’s in the company’s history with an unexpectedly strong final quarter in which it saw earnings more than quadruple.

Acknowledging the hardships faced since the disastrous earthquake and tsunami – which cost the maker 100s of thousands of units of lost production – Toyota President Akio Toyoda offered a more positive outlook for the future, though he cautioned there are still challenges ahead.

“Thanks to the concerted efforts of our employees, suppliers and dealers, we were able to recover production and sales faster than anticipated and achieved a strong result,” said Toyada, grandson of the automaker’s founder. “Our vision,” he added, “is to establish a strong business foundation that will ensure profitability under any kind of difficult business environment.”

Toyota quadrupled net income to 121 billion yen, $1.5 billion at current exchange rates, during the January to March period, the final quarter in the Japanese fiscal year. Last year’s first quarter felt the first effects of the March 11, 2011 earthquake and tsunami, driving earnings down to just 25.4 billion yen.

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For the latest full year that ended March 31, Toyota reported earnings fell 30% to 283.6 billion yen, or $3.5 billion. But that was nonetheless better than the automaker’s original profit forecast of 200 billion yen, or $2.5 billion – and slightly exceeded analysts’ consensus. According to FactSet, the collective forecast for the year had been $3.49 billion.

Sales for latest quarter rebounded 23% to 5.7 trillion yen, or $71.3 billion. For the full fiscal year they came to 18.58 trillion yen, or $232 billion, a 2% drop.

Looking forward, Toyota is now forecasting profits could climb to $9.5 billion for the fiscal year that began on April 1, 2012. In a conference call with reporters, Senior Managing Officer Takahiko Ijichi said the maker expects sales to jump 1.3 million units to 8.7 million cars, trucks and crossovers.

Much of that is expected to come from the restoration of full production following the March 2011 disaster and the concurrent recovery of lost market share. But Toyota also hopes to further build demand with new products – such as the expanding Prius “family” — and by expanding its penetration in both established and emerging markets. During his conference call, Ijichi noted the maker aims to achieve 1 million units of sales in China, up from 900,000 during the just-ended fiscal year.

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Regaining share in the critical U.S. market is one of Toyota’s major goals. It scored some successes during the January to March quarter with products like the redesigned Camry and the latest additions to the Prius family, such as the compact Prius C and larger Prius V. The entire hybrid line, starting with the original Prius hatchback, has fared well in the face of rising U.S. fuel prices.

In the last few months,” said Edmunds.com senior analyst Jessica Caldwell, “Toyota has made big strides to regain the U.S. market share it lost to its competitors.”

But data from research firm TrueCar.com has also shown that Toyota has been forced to sharply ramp up marketing expenses – including incentives – to rebuild U.S. demand.

The American fuel price spike has clearly helped the maker, the Prius surging to new records. But whether that pace will be maintained is uncertain. Past cycles show demand for hybrids dips sharply once fuel prices stabilize, as there are signs is now happening.

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The automaker also faces challenges due to the strong yen, which has cut into profits in the U.S. and many other parts of the world. Toyota has been attempting to minimize the exchange rate impact by shifting more production of components and vehicles overseas.

That’s a strategy being echoed by its Japanese competitors – notably including Honda, which also showed signs of recovery in its latest quarterly earnings which jumped 61% during the January to March period.

But despite Toyota’s determination to regain its momentum it is facing some equally dogged competitors, including both General Motors – which regained its long-standing position to industry sales leader in 2011 – as well as Volkswagen AG, which landed in the number two slot. VW has a stated goal of becoming the world’s biggest automaker before the end of the decade,

Toyota officials have never confirmed a goal of being – or returning to – number one. But the sales targets for the coming fiscal year show the maker is not going to readily give up that mantle permanently.