An Analysis of the Financial Situation of F. Motor
The auto business is growing in China at a considerably higher rate than the GDP, production has been up by 36% in the first eight months in 2003 (2,781,800) comparing to the same months in 2002, (The China Association of Automobile Manufactures).
This report analyses the financial situation of F. Motor Co. , Ltd. (FMC). FMC is a rapidly developing Chinese auto manufacturer.
The analysis is made from an investor’s point of view.
By both quantitative and qualitative analysis methods, in a way of comparison with itself before and its counterparts in the same fields in china, the author presented a detailed and complete analysis of its strengths, weaknesses, opportunities and threats. FMC is a company listed on Chinese Shanghai Stock Exchange. The reasons why the author chose to study the topic of analyzing the financial situation of FMC were as follows: 1.
Chinese auto industry has greatly developed since China entered the World Trade Organization in the year of 2000.
As a famous auto manufacturer developing with high speed in these years, FMC was picked as the 55th company in the top 100 powers and as the second powerful auto manufacturer listed in Chinese stock market by the famous journal “Fortune”(Shanghai Securities Daily, 2003). It moved from 25th positions of all auto companies listed in stock exchange and became the 2nd ranked auto-company in the year of 2003.
It has achieved tremendous growth. As a representative in the Chinese auto industry, FMC has great potential for further development. 2.
Since 2004, its products have expanded to include commercial vehicles. There are big comparative advantages for Chinese commercial vehicle industry in the world market (Interim Report, 2003). Light truck is one of few products in China with property right. FMC is the biggest light truck manufacturer in China. And it has a big share in the market (China Auto Annals, 2003). 3.