Are you about starting a car assembling plant? If YES, here is a complete sample car assembling plant business plan template & feasibility report you can use for FREE.
A car assembling plant business is of course one of the many businesses that fetches huge profits, but one has to be an accredited investor to start. If you fall in this category, you can open your plant in any part of the world and start exporting cars to other countries of the world.
Starting a car assembling plant in the united states of America is indeed a thriving business despite the fact that car manufacturers are looking towards China where they are going to get cheap labor.
As a matter of fact, there are car assembling plants in 50 States in the United States of America and some of the leading car assembling plants roll out about half a million cars annually hence it is a business that can be started in the United States.
A car assembling plant business also needs a significant investment capital, solid planning, and concentration to detail in order to keep the business profitable. So, if you have decided to start a car assembling plant business, then you should carry out thorough feasibility studies and market survey.
Business plan is yet another very important business document that you should not take for granted when launching your car assembling plant business. Below is a sample car assembling plant business plan template that can help you to successfully write your own with little or no difficulty;
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;
- Compact and subcompact cars
- Midsize sedans
- Large cars
- Luxury cars
4. Our Mission and Vision Statement
- 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.
Our Business Structure
We know that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our car assembling plant company on the right business foundation.
We want to build a dedicated workforce that will ensure that our customers are satisfied when they purchase our cars. We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us manufacture standard and durable cars and run the business on autopilot.
We will employ various employees to man the various service units of Car Nation® Car Assembling Plant, Inc. They will occupy the following positions;
- Chief Executive Officer
- Plant Manager
- Human Resources and Amin Manager
- Sales and Marketing Manager
- Automobile Assembling Engineers/Technicians
- Accountants/Cashiers
- Customer Services Executive/Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives.
- Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- 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.
Sales and Marketing Manager
- 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
- Responsible for operating machines used in the assembling of cars
- Ensures that only well tested and durable cars are rolled out from the assembling plant
- Handles any other duty as assigned by the plant manager or supervisor
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
Client Service Executive/Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s automobile brand
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels/documents for the company
- Distribute mails in 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;
- First Year: $3 Million
- Second Year: $6 Million
- Third Year: $10 Million
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.
11. Publicity and Advertising Strategy
Car Nation® Car Assembling Plant, Inc. is set to create a standard for car assembling business in Fort Lauderdale – Florida and throughout the United States which is why we will apply best practices to promote our car brand. Good enough there is no hard and fast rule on how to advertise a car brand.
We will ensure that we leverage on all advertising techniques to promote our car business. Here are the platforms we intend leveraging on to promote and advertise Car Nation® Car Assembling Plant, Inc.;
- 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
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the car assembling plant line of business, we don’t intend to sell our cars more (except for special orders /customized cars) and we don’t intend to sell less than our competitors are selling.
Be that as it may, we have put plans in place to offer discount once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our cars will be same as what is obtainable in the open market.
- 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;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
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.
13. Startup Expenditure (Budget)
We have been able to pull cash that will be enough for us to successfully launch a standard car assembling plant in Fort Lauderdale – Florida US. These are the key areas where we will spend our startup capital on;
- 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.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring assembling plant facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors – suppliers of all our needed car parts, accessories and supplies et al: In Progress