A Sample Car Assembling Plant Business Plan Template
A Sample Car Assembling Plant Business Plan Template
1. Industry Overview
Car assembling plants basically assemble cum manufacture cars and automobile chassis.
Referred to as automakers, they typically produce cars (compact and subcompact cars,
midsize sedans, large cars and luxury cars), including electric cars. The manufacturing of
light trucks (e.g. vans, pickups and SUVs), heavy trucks and motorcycles is excluded from
this industry.
Research conducted by IBISWORLD shows that the largest proportion of industry
establishments are located in the Great Lakes area, with 29.3 percent of total facilities:
General Motors in Detroit; Ford in Dearborn, MI; and Chrysler in Auburn Hills, MI.
These three companies are often referred to as the Big Three, or the Detroit Three. The
recession wreaked havoc on The Big Three, forcing GM and Chrysler into bankruptcy and
Ford to make drastic cutbacks. Consequently, these companies closed several plants as they
restructured themselves out of loss-making performances.
The report further stated that the number of companies in the Great Lakes region has been
falling as a result of the restructuring and the Big Three’s financial woes. The second
automotive hub in the United Stated is found in the West Region, which holds 21.4 percent.
Over the five years to 2017, the revenue for the Car and Automobile manufacturing industry
is anticipated to experience volatility, which will ultimately contribute to an overall revenue
decline. As the economy rebounded, consumer confidence has improved and financing
options have become more widely available. This has released pent-up consumer demand for
new vehicle purchases in the first half of the five-year period.
In addition, interest rates remained low, which reduced the cost to finance a vehicle purchase,
and sales across the automotive sector recovered healthily. However, in the latter half of the
past five years, production slowed in response to depressed vehicle sales. Despite declining
revenue, the industry has continued increasing product innovation.
The Car and Automobile Manufacturing Industry is indeed a major sector of the economy of
some countries in the world (United States of America, Italy, France, united kingdom,
Sweden, China and India et al). Statistics has it that in the United States of America alone, the
Car and Automobile manufacturing industry generates over billion annually from more than
188 registered and licensed big scale car and automobile manufacturing companies scattered
all around the United States of America.
The industry is responsible for the employment of over 84,594 people. Experts project the car
and automobile manufacturing industry to grow at a -4.2 percent annual rate between 2012
and 2017. Ford Motor, GM (General Motors, Honda Motor Co. Ltd., Nissan Motor Co. Ltd.
And Toyota are the companies with the lion share of the available market in the United States
of America.
Car assembling plant is not a Green business and despite the fact that the industry seems
saturated, there is still room big enough to accommodate new investors who are ready to
come up with innovative ideas. The automobile manufacturing industry is a profitable
industry and it is open for accredited investors to come in and establish their plant.
2. Executive Summary
Car Nation® Car Assembling Plant, Inc. is a registered car assembling Plant Company that
will be located in will in Fort Lauderdale, Florida – United States of America and we have
been able to secure the license, permits and a facility in a good location in Fort Lauderdale.
We will be involved in the production of cars (compact and subcompact cars, midsize sedans,
large cars and luxury cars), including electric cars et al for a wide range of clientele not only
in the United States of America but all across the globe.
We are quite optimistic that our values and quality of products will help us drive our car
assembling plant business to enviable heights and also help us attract the number of clients
that will make the business highly profitable. We will be dedicated to establishing good
business relationship with our clients by giving them value for their money and reasons for
them to purchase our cars repeatedly.
We are quite aware that in order to get people and organizations to purchase and make use of
our car brand, we must continue to produce quality cars and that is exactly what we will do.
We are open to the use of latest technology in the car assembling plant line if business. No
doubt our excellent customer service and the quality and durability of the cars we assemble
will position us to export our cars to other countries of the world.
Our client’s best interest will always come first, and everything we do will be guided by our
values and professional ethics. We will ensure that we hold ourselves accountable to the
highest standards by meeting our client’s needs precisely and completely.
Car Nation® Car Assembling Plant, Inc. is owned and managed by Richard Nixon and his
immediate family members. He is an accredited investor and a notable figure in the
automobile industry in Florida. He will build the business with competent automobile
engineers and technicians from within Florida and other parts of the United States of
America.
3. Our Products and Services
Car Nation® Car Assembling Plant, Inc. was established with the aim of maximizing profits
in the car and automobile manufacturing industry. We want to compete favorably with
leading car assembling plants in the United States which is why we have put in place a
competent team of automobile engineers and technicians that will ensure that every car that
we roll out from our plant meets and even surpass our customers’ expectations.
We will work hard to ensure that Car Nation® Car Assembling Plant, Inc. is not just accepted
in the United States of America but also in other countries of the world. Our products are
listed below;
We want to build a car assembling plant whose cars will not only be seen on road in
the United States of America but all across the globe.
Our mission as a car assembling plant company is to develop a highly successful car
assembling plant business that is known to manufacture durable and affordable
automobiles for both the rich and the general populace; we want to be listed amongst
the top 20 car brands in the world.
Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
Maintains office supplies by checking stocks; placing and expediting orders;
evaluating new products.
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Arranges travel, meetings and appointments
Oversees the smooth running of the daily office activities.
Plant Manager:
Responsible for overseeing the smooth running of the car assembling plant
Part of the team that determines the quantity, colors and sizes of cars that are to be
produced
Maps out strategy that will lead to efficiency amongst workers in the plant
Responsible for training, evaluation and assessment of automobile engineers and
other plant workers
Ensures that the steady flow of both raw materials to the plants and easy flow of
finished products through wholesale distributors to the market
Ensures operation of equipment by completing preventive maintenance requirements;
calling for repairs.
Guarantees that the factory meets the expected safety and health standard at all times.
Controls distribution and supply inventory
Supervises the workforce in the assembling plant.
Manages external research and coordinate all the internal sources of information to
retain the organizations’ best customers and attract new ones
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Automobile Engineers/Technicians
Accountant/Cashier:
Responsible for preparing financial reports, budgets, and financial statements for the
organization
Provides managements with financial analyses, development budgets, and accounting
reports; analyzes financial feasibility for the most complex proposed projects.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization
6. SWOT Analysis
We are building a standard car assembling plant business with cars that can compete with
other leading car brands which is why we have decided to subject our business idea to SWOT
Analysis.
Car Nation® Car Assembling Plant, Inc. is in business to become one of the leading car
assembling plants in the whole of United States of America and we are fully aware that it will
take the right business concept, management and organizational structure to achieve our goal.
We are quite aware that there are car assembling plants all over the United States of America,
which is why we are following the due process of establishing a business. We know that if a
proper SWOT analysis is conducted for our business, we will be able to position our business
to maximize our strength, leverage on the opportunities that will be available to us, mitigate
our risks and be equipped to confront our threats.
Car Nation® Car Assembling Plant, Inc. employed the services of an expert HR and Business
Analyst with bias in the automobile industry to help us conduct a thorough SWOT analysis
and to help us create a Business model that will help us achieve our business goals and
objectives.
Here is a of the result we got from the SWOT analysis that was conducted on behalf of Car
Nation® Car Assembling Plant, Inc.;
Strength:
Car Nation® Car Assembling Plant, Inc. is centrally located in a densely populated industrial
area in Fort Lauderdale, Florida; our location is in fact one of our major strength. We have a
state-of-the-art car assembling equipment and we are also one of the very few companies in
the whole of Fort Lauderdale – Florida that assembles both Japanese and American Cars.
Another strength that counts for us is the power of our team; our workforce and management.
We have a team of experts in the car assembling business, a team of hardworking, highly
creative and dedicated individuals.
Weakness:
Car Nation® Car Assembling Plant, Inc. is a new business which is own by an individual
(family), and we may not have the financial muscle to sustain the kind of publicity we want
to give our business. As a new business, we are also quite aware that it will take time for us to
build trust with our clients.
Opportunities:
We are centrally located in one of the busiest industrial areas in Fort Lauderdale, Florida and
we are open to all the available opportunities that the city has to offer. Our business concept
also positions us to be a one stop shop in the car assembling plant business. The truth is that
there are no standard car assembling plants within our area; the closest plant to our proposed
location is in another state. In a nutshell, we do not have any direct competition within our
target market area.
Threat:
Some of the threats that are likely going to confront Car Nation® Car Assembling Plant, Inc.
is unfavorable government policies, seasonal fluctuations, and downturn in the economy
which is likely going to affect consumer spending and of course emergence of new
competitors within the same location where our plant is located.
7. MARKET ANALYSIS
Market Trends
If you have ever taken your time to study car patronage and usage in the United States of
America, you will have noticed that Americans especially the middle class make use of cars
that are manufactured in the United States of America. This goes to show that there is a
thriving business for car manufacturers in the United States of America.
Car assembling plant business responds to the increase in household spending and increase in
the earning power of people.
In the United States of America and in most developed countries of the world, cars with high
emissions are not allowed to be sold in the country. This is why most car assembling plants
will ensure that they get it right with their emission and other factors that will help them sell
their cars.
8. Our Target Market
Those that purchase cars cut across all genders above 18 years with the financial means,
hence the target market for car assembling plant business is all encompassing. We are in
business to retail a wide range of brand new cars to the following groups of people;
Students
Middle Class Families
Upper Class Families
Corporate Organizations
Government Agencies
Celebrities
Our competitive advantage
Car assembling plant business is a highly creative industry. We aware of this which is why
we decided to come up with a business concept that will position us to become one the
leaders in Fort Lauderdale – Florida.
Our competitive edge is that we are standard plant that can boast of having some of the finest
automobile engineers and technicians. We will ensure that only durable and efficient cars are
rolled out from our car assembling plant. We can confidently say that the location of our
plant will definitely count as a positive for us amongst any competitor that might start a car
assembling plant business in the same location.
Lastly, all our employees will be well taken care of, and their welfare package will be among
the best within our category in the industry. It will enable them to be more than willing to
build the business with us and help deliver our set goals and achieve all our business aims
and objectives.
9. SALES AND MARKETING STRATEGY
Sources of Income
Car Nation® Car Assembling Plant, Inc. is established with the aim of maximizing profits in
the car assembling plant line of business and we are going to do all it takes to attract clients
on a regular basis.
10. Sales Forecast
We are well positioned to take on the available market in Fort Lauderdale – Florida and we
are quite optimistic that we will meet our set target of generating enough income from the
first six months of operation and grow our business and our clientele base.
We have been able to critically examine the car assembling plant market and we have
analyzed our chances in the industry and we have been able to come up with the following
sales forecast. Below are the sales projection for Car Nation® Car Assembling Plant, Inc., it
is based on the location of our business and of course the wide range of cars that we will be
rolling out from our car assembling plant;
N.B: This projection was done based on what is obtainable in the car assembling plant line of
business and with the assumption that there won’t be any major economic meltdown. Please
note that the above projection might be lower and at the same time it might be higher.
Marketing Strategy and Sales Strategy
The marketing strategy for Car Nation® Car Assembling Plant, Inc. is going to be driven
basically by unique car brand, excellent customer service, honesty and efficiency. We will
ensure that we build a loyal customer base. We want to drive sales via the output of our
brands and via referral from our satisfied customers.
Car Nation® Car Assembling Plant, Inc. is strategically located and we are going to
maximize the opportunities that are available in our location. Our sales and marketing team
will be recruited based on their vast experience in the industry and they will be trained on a
regular basis so as to be well equipped to meet their targets.
Our goal is to grow Car Nation® Car Assembling Plant, Inc. to become the leading car
assembling plant company in Fort Lauderdale – Florida which is why we have mapped out
strategies that will help us take advantage of the available market and grow to become a
major force to reckon with in the car manufacturing industry.
Car Nation® Car Assembling Plant, Inc. is set to make use of the following marketing and
sales strategies to attract clients;
Introduce our car assembling plant business and car brand by sending introductory
letters alongside our brochure to corporate organizations, government agencies, car
dealership, households and key stake holders in Fort Lauderdale – Florida
Print out fliers and business cards and strategically drop them in offices, libraries,
public facilities and train stations et al.
Use friends and family to spread word about our business
Post information about our company and our car brands on bulletin boards in places
like bars, automobile exhibition centers, libraries, and local coffee shops et all
Leverage on referral networks such as agencies that will attract clients who would
need our car brand
Advertise our car assembling plant company in relevant auto magazines, newspapers,
TV and radio stations.
Attend relevant expos, seminars, and automobile business fairs et al to market our car
brands
Engage in direct marketing approach
Join local chambers of commerce and industry to market our car brand.
Encourage our loyal customers to help us use Word of Mouth mode of advertisement
(referrals)
Advertise our car assembly plant business in relevant automobile magazines, local
newspaper, local TV and local radio stations
Promote our business online via our official website
List our business on local directories (yellow pages)
Sponsor relevant community programs
Leverage on the internet and social media platforms like; Instagram, Facebook,
twitter, et al to promote our car brand
Install our billboards on strategic locations in and around Fort Lauderdale – Florida
Direct coupon mailing approach
Engage in roadshow from time to time in target communities
Distribute our fliers and handbills in target areas
Payment Options
The payment policy adopted by Car Nation® Car Assembling Plant, Inc. is all inclusive
because we are quite aware that different customers prefer different payment options as it
suits them but at the same time, we will ensure that we abide by the financial rules and
regulation of the United States of America.
Here are the payment options that Car Nation® Car Assembling Plant, Inc. will make
available to her clients;
In view of the above, we have chosen banking platforms that will enable our client make
payment for our cars without any stress on their part. Our bank account numbers will be
made available on our website and promotional materials.
The Total Fee for Registering the Business in Fort Lauderdale – Florida – $750.
Legal expenses for obtaining licenses and permits – $3,500.
Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of
$13,580.
The cost for hiring Business Consultant – $5,000.
Insurance (general liability, workers’ compensation and property casualty) coverage
at a total premium – $30,800.
The cost of accounting software, CRM software and Payroll Software – $10,000
The total cost for leasing standard plant facility- $500,000.
The total cost for facility remodeling – $700,000.
The amount needed for phone and utility deposits – $3,500
Operational cost for the first 3 months (salaries of employees, payments of bills et al)
– $400,000
The cost for Start-up inventory – $150,000
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost for automobile tool box and equipment – $50,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone,
TVs, Credit card machine, POS, tables and chairs et al) – $4,000.
The cost of Launching a Website – $600
Miscellaneous: $100,000
We would need an estimate of three million five hundred thousand US dollars ($3.5 million))
to successfully launch our car assembling plant business in Fort Lauderdale – Florida US.
Generating Startup Capital for Car Nation® Car Assembling Plant, Inc.
Car Nation® Car Assembling Plant, Inc. will be owned and managed by Richard Nixon and
his immediate family members. They are the sole financiers of the business which is why
they decided to restrict the sourcing of the startup capital for the business to just three major
sources.
These are the areas we intend generating our start – up capital;
Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $1.5 million (Personal savings $1 million and soft
loan from family members $500,000) and we are at the final stages of obtaining a loan
facility of $2 million from our bank. All the papers and documents have been duly signed and
submitted, the loan has been approved and any moment from now our account will be
credited.
14. Sustainability and Expansion Strategy
One of our major goals of starting Car Nation® Car Assembling Plant, Inc. is to build a
business that will survive off its own cash flow without the need for injecting finance from
external sources once the business is officially running. We know that one of the ways of
gaining approval and winning customers over is to ensure that we roll out durable and highly
competitive cars from our car assembling plants.
At Car Nation® Car Assembling Plant, Inc., we will make sure that the right foundation,
structures and processes are put in place to ensure that our staff welfare are well taken of. Our
company’s corporate culture is designed to drive our business to greater heights and training
and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management
staff and it will be based on their performance for a period of ten years or more. We know
that if that is put in place, we will be able to successfully hire and retain the best hands we
can get in the industry; they will be more committed to help us build the business of our
dreams.