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Economic forecast and the auto industry

GDP in-depth analysis on how your forecast will impact your industry. Include an evaluation of the impact of past and current fiscal policies, monetary policies, budget deficits or surpluses on the economy and on your industry. include a group of final recommendations and strategic initiatives.
Find below info I have reported on the GDP for Ford Motor Company ( automotive)

Real Gross Domestic Product (GDP)

Gross Domestic Product "is one of the measures of national income and output for a given country's economy. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time, and it is given a money value. The most common approach to measuring and understanding GDP is the expenditure method: GDP = consumption + gross investment + government spending + (exports − imports), or, GDP = C + I + G + (X-M) (Wikipedia, 2008)."
Real GDP
Gross domestic product (GDP) is the total market value of all final goods and services produced in a country in a year or C+I+G+(X-M)=GDP. GDP is checked quarterly and revised a couple of times before a final figure is given. This is given in two forms of current and constant dollar (InvestorWords). With the economy having difficulties the automotive industry is having an effect on the GDP. The 64 basis points were subtracted from the GDP were from lost sales from motor vehicles and their parts with each quarter getting worse.
A few years ago automobile sales were high then came a turn in the economy which changed the purchasing of a new vehicle to the hopes and dreams of many. With rising gas prices and interest rates sales seemed to slow down. The banks financed many people with questionable credit allowing for new cars to be purchased. Now that the interest rates are down and sales should be up but slow selling for many. The unemployment being high has many without jobs and the ability to pay the monthly payments of a new vehicle bringing down the sales which are reflective in the GDP as it made up of 10% auto sales.
Line 2006
I 2006
II 2006
III 2006
IV 2007
I 2007
II 2007
III 2007
IV 2008
I 2008
II 2008
III 2008
IV
Percent change at annual rate:
1 Gross domestic product 4.8 2.7 0.8 1.5 0.1 4.8 4.8 -0.2 0.9 2.8 -0.5 -6.2
Percentage points at annual rates:
2 Personal consumption expenditures 2.86 1.88 1.52 2.55 2.71 1.42 1.44 0.67 0.61 0.87 -2.75 -3.01
3 Durable goods 1.37 0.14 0.27 0.33 0.71 0.40 0.19 0.03 -0.33 -0.21 -1.16 -1.67
4 Motor vehicles and parts 0.53 0.06 0.06 0.01 0.30 0.05 -0.22 -0.03 -0.35 -0.64 -0.83 -1.13
5 Furniture and household equipment 0.55 0.15 0.20 0.23 0.34 0.17 0.26 0.11 0.05 0.39 -0.25 -0.25
6 Other 0.29 -0.06 0.00 0.09 0.07 0.17 0.15 -0.06 -0.04 0.04 -0.08 -0.30
7 Nondurable goods 0.85 0.62 0.46 0.62 0.71 0.40 0.25 0.05 -0.08 0.80 -1.57 -1.95
8 Food 0.50 0.43 0.10 0.20 0.12 0.27 0.03 0.27 0.13 0.40 -0.75 -1.53
9 Clothing and shoes 0.18 0.02 0.14 0.12 0.25 0.08 0.12 -0.09 0.08 0.28 -0.38 -0.25
10 Gasoline, fuel oil, and other
energy goods -0.17 -0.11 0.03 0.03 0.13 -0.07 -0.01 -0.05 -0.18 -0.20 -0.45 0.28
11 Other 0.33 0.27 0.19 0.26 0.22 0.12 0.11 -0.08 -0.10 0.33 0.01 -0.44
12 Services 0.64 1.12 0.79 1.61 1.29 0.62 1.00 0.59 1.02 0.28 -0.03 0.61
13 Housing 0.37 0.31 0.25 0.22 0.12 0.09 0.08 0.12 0.05 0.18 0.08 0.04
14 Household operation -0.42 0.26 0.10 0.03 0.08 0.02 0.06 0.09 0.07 -0.17 -0.33 0.27
15 Electricity and gas -0.42 0.20 0.05 -0.01 0.07 -0.04 0.02 0.01 0.11 -0.19 -0.38 0.21
16 Other household operation 0.01 0.06 0.05 0.04 0.00 0.06 0.04 0.08 -0.05 0.02 0.05 0.05
17 Transportation 0.08 0.08 0.03 0.10 0.03 0.04 0.06 -0.02 0.04 -0.08 -0.06 -0.15
18 Medical care 0.37 0.15 0.07 0.35 0.63 0.13 0.45 0.48 0.59 0.35 0.31 0.23
19 Recreation 0.08 0.04 0.18 0.36 0.06 0.08 0.07 -0.01 -0.14 0.04 -0.04 0.01
20 Other 0.16 0.27 0.15 0.55 0.37 0.27 0.28 -0.08 0.40 -0.03 0.02 0.21
21 Gross private domestic investment 1.15 -0.02 -0.92 -2.68 -1.63 0.94 0.54 -1.93 -0.89 -1.74 0.06 -3.11
22 Fixed investment 1.39 -0.40 -0.81 -1.27 -0.57 0.47 -0.15 -0.97 -0.86 -0.25 -0.79 -3.26
23 Nonresidential 1.62 0.71 0.59 -0.09 0.33 1.07 0.91 0.36 0.26 0.27 -0.19 -2.48
24 Structures 0.42 0.54 0.42 0.08 0.35 0.57 0.65 0.29 0.30 0.64 0.36 -0.24
25 Equipment and software 1.20 0.16 0.17 -0.18 -0.02 0.50 0.26 0.07 -0.04 -0.37 -0.55 -2.24
26 Information processing
equipment and software 0.61 0.15 0.34 0.04 0.57 0.41 0.31 0.37 0.27 0.30 -0.16 -0.97
27 Computers and
peripheral equipment 0.16 0.17 0.13 0.02 0.17 0.09 0.12 0.12 0.10 0.08 -0.16 -0.26
28 Software 1
0.03 0.02 0.07 0.14 0.21 0.22 0.10 0.16 0.16 0.04 -0.08 -0.29
29 Other 0.41 -0.04 0.14 -0.11 0.19 0.09 0.09 0.10 0.00 0.18 0.08 -0.42
30 Industrial equipment -0.07 0.25 -0.12 -0.02 -0.10 0.34 -0.04 -0.20 0.01 -0.05 -0.12 -0.21
31 Transportation equipment 0.52 -0.25 0.06 -0.15 -0.21 -0.32 -0.07 -0.18 -0.16 -0.58 -0.47 -0.76
32 Other equipment 0.15 0.02 -0.12 -0.05 -0.28 0.07 0.06 0.08 -0.16 -0.04 0.20 -0.31
33 Residential -0.23 -1.11 -1.40 -1.18 -0.91 -0.60 -1.06 -1.33 -1.12 -0.52 -0.60 -0.78
34 Change in private inventories -0.24 0.38 -0.11 -1.41 -1.06 0.47 0.69 -0.96 -0.02 -1.50 0.84 0.16
35 Farm 0.02 -0.24 0.00 0.12 -0.07 0.14 -0.08 0.47 -0.17 -0.14 0.01 0.05
36 Nonfarm -0.26 0.62 -0.12 -1.52 -0.99 0.33 0.77 -1.43 0.15 -1.36 0.83 0.10
37 Net exports of goods and services 0.09 0.59 -0.12 1.33 -1.20 1.66 2.03 0.94 0.77 2.93 1.05 -0.46
38 Exports 1.70 0.58 0.39 1.66 0.06 1.01 2.54 0.53 0.63 1.54 0.40 -3.44
39 Goods 1.27 0.49 0.28 0.78 0.15 0.55 1.66 0.43 0.39 1.39 0.34 -3.58
40 Services 0.42 0.09 0.11 0.87 -0.09 0.46 0.88 0.10 0.24 0.15 0.06 0.14
41 Imports -1.61 0.01 -0.51 -0.33 -1.25 0.65 -0.51 0.40 0.14 1.39 0.65 2.99
42 Goods -1.18 -0.04 -0.51 0.13 -1.14 0.59 -0.34 0.38 0.29 1.14 0.74 3.06
43 Services -0.43 0.05 0.01 -0.46 -0.11 0.06 -0.17 0.02 -0.15 0.25 -0.09 -0.08
44 Government consumption expenditures
and gross investment 0.72 0.23 0.32 0.30 0.17 0.77 0.75 0.16 0.38 0.78 1.14 0.32
45 Federal 0.66 -0.11 0.13 0.12 -0.26 0.47 0.51 -0.04 0.41 0.47 0.97 0.50
46 National defense 0.39 0.09 -0.04 0.32 -0.29 0.40 0.48 -0.04 0.34 0.36 0.85 0.16
47 Consumption expenditures 0.40 -0.02 0.00 0.14 -0.08 0.28 0.45 -0.06 0.31 0.15 0.72 0.16
48 Gross investment -0.01 0.11 -0.05 0.18 -0.21 0.12 0.03 0.02 0.04 0.21 0.14 0.01
49 Nondefense 0.27 -0.20 0.17 -0.20 0.03 0.07 0.03 0.01 0.06 0.11 0.12 0.34
50 Consumption expenditures 0.22 -0.14 0.15 -0.20 0.06 0.02 0.03 -0.02 0.06 0.08 0.11 0.21
51 Gross investment 0.05 -0.07 0.03 0.01 -0.04 0.05 -0.01 0.02 0.01 0.03 0.00 0.13
52 State and local 0.06 0.34 0.19 0.18 0.43 0.30 0.24 0.19 -0.03 0.31 0.17 -0.18
53 Consumption expenditures 0.23 0.16 0.24 0.23 0.20 0.17 0.15 0.15 0.14 0.12 0.11 0.00
54 Gross investment -0.18 0.18 -0.05 -0.06 0.24 0.13 0.09 0.04 -0.18 0.19 0.06 -0.17

Real GDP
The recession has not only affected jobs within the United States, but in fact has affected the sales aspect of many corporations as well. Take for instance, Ford Motor Company, "the recession also has had very negative ramifications for the U.S. auto industry, which supports five million jobs in all 50 states and spends $12 billion annually on research and development in the U.S. -more than any other industry. The auto sector is one of the first to suffer from bad economic conditions-indeed; spending on new vehicles historically represents about 4% of GDP and therefore is closely tied to economic conditions (Ford Business Plan, 2008)." In the first half of 2009, the real GDP has declined between 2.0% and 2.5%. In this quarter it is projected to decline 4.0%. Consumers are very skeptical in their spending and feel as though spending their money on a new vehicle at this point in time is not a wise decision, especially not knowing if they will or will not have a job in the next day or two.
Ford motor company has come up with a plan to try and bring themselves out of this slump they are undergoing. They have to compete with other competitors such as Chevrolet, Hyundai, Toyota, Lexus, Mercedes, etc. They have expanded their brand by adding Aston Martin, Jaguar, Land Rover, and Volvo. All of these are prestige automobiles and are more of an upscale type of vehicle. By adding these brands, this will hopefully help raise the GDP within Ford Motor Company.

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This assignment is really asking you to find some forecasts of GDP and to use them in assessing the future prospects of your company. Here are some possible forecasts you could use:

http://www.forecasts.org/gdprealgrowth.htm
Here you can see that the growth rate is becoming less negative, then turning positive, indicating an end to the recession by the end of the year.

Even though this report is for Oklahoma, it has a lot about the national economy.
http://economy.okstate.edu/outlook/2009/2009%20Oklahoma%20Economic%20Outlook%20-%20State%20of%20Oklahoma.pdf
The forecast it gives through 2010 on page 2 also indicates an economic recovery. Notice on page 2 it states ...

Solution Summary

GDP forecasts and their implications on the auto industry

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