DETERMINANT OF PROFITABILITY IN AUTOMOBILE INDUSTRY IN THE UINTED KINGDOM

Topics: Automotive industry, Volkswagen Group, Renault Pages: 36 (10791 words) Published: January 11, 2015
DETERMINANT OF PROFITABILITY IN AUTOMOBILE INDUSTRY IN THE UINTED KINGDOM

May 2014

Table of Contents
Abstractiv
Acknowledgementsvi
Chapter 1: Introduction7
Chapter 2: Literature Review2
2.1 History of automobile industry2
2.2 What is profitability ratio?5
2.2.1 ROCE: Return on capital employed5
2.2.2 Current ratio6
2.2.3 Asset turnover6
2.2.4 Debt-to-Equity ratio6
2.3Factors effects to profit7
2.3.1 Internal determinants7
2.3.2External determinants12
Chapter 3 Overview of current automotive industry in the UK17 3.1 Over view of 5 key players in Automobile industry in the UK17 3.1.1 BMW17
3.1.2 Daimler-Chrysler AG19
3.1.3 Renault20
3.1.4 Volkswagen Group22
3.1.5 Peugeot23
3.2 Overview UK economy and development of Automobile industry in the UK25 3.2.1 UK GDP25
3.2.2 Rate of unemployment26
3.2.3 Actual and forecast Car sales in UK26
3.2.4 Rate of Inflation in the UK28
Chapter 4 Methodologies29
4.1. Problem statement29
4.2. Alternative styles of research30
4.3. Research Questions31
4.4. Methods of analysis31
4.5. Sources of data32
There are two types of sources of data: primary and secondary32 4.6. Ethical issues33
Chapter 5 Analysis and Finding34
5.1 Data Description34
5.2 Finding data40
Chapter 6 Discussions42
Chapter 7 Conclusions44
7.1 Achievement of the objectives44
7.2 Limitations of the research44
7.3 Area for future researches44
Reference46

List of Figures:
Figure 3.1.1.1 - Logo of BMW17
Figure 3.1.1.2 - Revenue of BMW from 2009 to 201318
Figure 3.1.1.3 - Profit before tax of BMW from 2009 to 201318 Figure 3.1.2.1 - Logo of Daimler-Chrysler AG19
Figure 3.1.2.2 - Gross profit of Daimler Chrysler from 2009 to 201320 Figure 3.1.3.1 - Logo of Renault20
Figure 3.1.3.2 - Gross profit of Renault from 2009 to 201321 Figure 3.1.4.1 - Logo of Volkswagen Group22
Figure 3.1.4.2 - Gross profit of Volkswagen Group from 2009 to 201323 Figure 3.1.5.1 - Logo of Peugeot24
Figure 3.1.5.2 - Gross profit of Peugeot from 2009 to 201324 Figure 3.2.1.1 - UK GDP growth: actual and forecast from 2007 to 201425 Figure 3.2.2.1 - Rate of UK unemployment from 2007 to 201226 Figure 3.2.3.1 - UK new car registration and forecasts -2011-201527 Figure 3.2.4.1 - Rate of UK inflation from 1997 to 201928

Figure 5.1.1 - ROCE of five companies from 2009 to 201334
Figure 5.1.2 - ROE of five companies from 2009 to 201335
Figure 5.1.3 - Current ratio of five companies from 2009 to 201336 Figure 5.1.4 - Debt and equity ratio of five companies from 2009 to 201337 Figure 5.1.5 - Asset turnover of five companies from 2009 to 201338 Figure 5.1.6 - Revenue of five companies from 2009 to 201339 Figure 5.1.7 - Gross profit of five companies from 2009 to 201339

Abstract
In 2013, Europe will account for about 20 % of the car factory in the world, lower than the 35 % rate in 2011. During the 1970s of the last century, average of 2 cars is produced, the first car in the world originated from Europe. Meanwhile, car production in China in 2013 increased by about 10 times compared to 2000 - a time when the market share of the Chinese automaker in the world is only about 3.5 %. European automobile manufacturing difficulties with sales declining sharply since the fiscal crisis of 2008 - 2009 caused many automakers to job cuts, downsizing production or even shut down plant. Carmakers such as PSA Peugeot Citroen # France have decreased by nearly 10,000 jobs and have to use financial bailout by the government. In the first 11 months of 2012, auto sales in Europe fell by 7.2 % to 11.7 million units and this is the lowest figure in nearly 20 years. The European car market remains gloomy in 2013 due to the economic crisis has yet to stop. Particularly, in Germany, there were around 1,200-bankrupted industry related enterprises, adding over 7,000 people to the unemployment figure in last year. Basically, many European manufacturers were...
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