Toyota Motor Corporation, Volkswagen Group and Renault-Nissan-Mitsubishi, in that order of importance, led the largest car producing companies in 2019, according to AutoForecast Solutions.
Original equipment manufacturers produced more than 91 million light vehicles in 2019.
The top 15 producers of cars and light vehicles, representing 84% or approximately 76 million, were also in descending order: Hyundai Motor Group, General Motors Company, Honda Motor Company, Ford Motor Company, Fiat Chrysler Automotive, Groupe PSA, Daimler AG, BMW AG, Zhejiang Geely Holding Group, Suzuki Motor Corporation, SAIC-GM-Wuling Automobile, and Mazda Motor Corporation.
There have been a number of examples of OEM consolidation in recent years, including the proposed merger of Fiat Chrysler Automotive and Groupe PSA announced on December 18, 2019.
The top 15 OEM
If this merger had been completed as of December 31, 2019, the combined company would have reached fourth place based on 2019 volumes.
OEM consolidation presents both opportunities and risks for automotive suppliers.
At the same time, the considerable growth of the Chinese automotive market in the past decade has led to significant growth for several Chinese OEMs, including SAIC and Geely.
Car producing companies
Typically, it takes two years or more to design and develop a new vehicle, and various factors can lengthen that time period.
Car producing companies operate in a highly competitive industry with market participants routinely introducing new and improved vehicle models and features designed to meet rapidly evolving consumer expectations.
Producing new and improved vehicle models that maintain a reputation for designing, building, and selling safe, high-quality cars and trucks is critical to long-term profitability.
The process of designing and developing new technologies, products and services is complex, expensive and uncertain and requires a large capital investment and the ability to retain and recruit talent.
Successful new vehicle launches are critical to the short-term profitability of car-producing companies.