Autolatina: Ford and Volkswagen's Joint Venture in Brazil
AUTOLATINA:
An International Partnership that ended up in a Divorce:
Ford - Volkswagen Joint Venture in Brazil
Autolatina, a joint venture of Ford and Volkswagen (VW), was created in 1987 in Brazil. The partners created the new company in order to serve the highly protected car markets of Brazil and Argentina from within. In addition, their goal was to create a giant theoretically invincible in the Latin American market. The partners’ strategy was to share the risk of operating in a volatile market and support a wide model range. Soon after the fusion, Autolatina market share reached 60% in the Brazilian market and 30% in Argentina.
Of German origin, Volkswagen was originally founded in 1937, with the goal of offering the “popular cars” that anyone could afford. This was best reflected by the Volkswagen Beetle which, at one time, was the world’s best selling car. Early on, the Beetle became a mascot of Brazil's economic miracle, accounting for nearly half of Brazilian car sales. Volkswagen launched VW Gol in 1980 please substitute the VW Beetle. It was assembled at Volkswagen do Brazil, which employed more than 45,000 people and was the largest industrial corporation in Latin America. VW Gol has been the best-selling car or in Brazil since VW Beetle.
Ford was the first automotive company to assemble in Brazil, and prior to 1939, it dominated passenger car sales. In the 1950s, Ford resisted Brazilian government plans to establish complete automotive operations, including assembly and full manufacturing. Reluctant to share the same vision with the Brazilian government, Ford allowed Volkswagen to capture the Brazilian market. Ford reentered the market in the 1970s and became the second largest automobile producer after VW.
Brazil's car industry, coddled by years of high tariff barriers and other forms of protectionism, has been scrambling to modernize. For decades, imported cars were banned or made prohibitively expensive and foreign parts were not
An International Partnership that ended up in a Divorce:
Ford - Volkswagen Joint Venture in Brazil
Autolatina, a joint venture of Ford and Volkswagen (VW), was created in 1987 in Brazil. The partners created the new company in order to serve the highly protected car markets of Brazil and Argentina from within. In addition, their goal was to create a giant theoretically invincible in the Latin American market. The partners’ strategy was to share the risk of operating in a volatile market and support a wide model range. Soon after the fusion, Autolatina market share reached 60% in the Brazilian market and 30% in Argentina.
Of German origin, Volkswagen was originally founded in 1937, with the goal of offering the “popular cars” that anyone could afford. This was best reflected by the Volkswagen Beetle which, at one time, was the world’s best selling car. Early on, the Beetle became a mascot of Brazil's economic miracle, accounting for nearly half of Brazilian car sales. Volkswagen launched VW Gol in 1980 please substitute the VW Beetle. It was assembled at Volkswagen do Brazil, which employed more than 45,000 people and was the largest industrial corporation in Latin America. VW Gol has been the best-selling car or in Brazil since VW Beetle.
Ford was the first automotive company to assemble in Brazil, and prior to 1939, it dominated passenger car sales. In the 1950s, Ford resisted Brazilian government plans to establish complete automotive operations, including assembly and full manufacturing. Reluctant to share the same vision with the Brazilian government, Ford allowed Volkswagen to capture the Brazilian market. Ford reentered the market in the 1970s and became the second largest automobile producer after VW.
Brazil's car industry, coddled by years of high tariff barriers and other forms of protectionism, has been scrambling to modernize. For decades, imported cars were banned or made prohibitively expensive and foreign parts were not