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Country of Origin Effect: A Comparative Research of Toyota and PSA Peugeot Citroen

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Country of Origin Effect: A Comparative Research of Toyota and PSA Peugeot Citroen
The home bias in the automotive industry, a comparative research of Toyota and PSA Peugeot Citroën.

TABLE OF CONTENTS

INTRODUCTION P.3

RESEARCH DESIGN P.3

BACKGROUND OF TOYOTA P.4

BACKGROUND OF PSA PEUGEOT CITROËN P.6

RESEARCH RESULTS P.8

DISCUSSION & CONCLUSION P.19

REFERENCES P.21

FIGURE 1: MOBILITY, PEOPLE AND SUSTAINABILITY P.5

FIGURE 2: TOYOTA – R&D INTERNATIONALIZATION P.9

FIGURE 3: TOYOTA PATENT PORTFOLIO P.10

FIGURE 4: TOYOTA 20 MOST PATENTED TECHNOLOGIES P.10

FIGURE 5: CAR BRANDS PATENT DISTRIBUTION P.11

FIGURE 6: PEUGEOT PATENT PORTFOLIO P.12

FIGURE 7: TOYOTA R&D LOCATIONS P.14

FIGURE 8: PEUGEOT R&D LOCATIONS P.17 INTRODUCTION

The last decade has been characterized by an increasing focus on the globalization within the various departments of multinational businesses. The urge of firms to adopt a global business strategy in order to sustain its competitiveness in the current markets is also visible in the R&D area, as many have launched globalization initiatives motivated by the opportunities to attract foreign talent, create competitive cost structures, and create market proximities. Mergers and acquisitions further stimulate the adaptation and integration of R&D activities.
The automotive industry, however, is showing a somewhat distinguished picture. As scientific knowledge and technological expertise are becoming increasingly regionalized, and technologies are changing more rapidly than ever, automotive manufacturers are forced to keep a tight eye on their R&D efforts (Calabrese, 2001). This relates to the argument that R&D projects should sometimes be kept within the home base for security reasons. In



References: [accesses 5 June 2009] APA-Intel Report, 2009 Autoblog, 2009. PSA Peugeot Citroën planning diesel hybrid for 2011. [Online] Available at: http://www.autoblog.com/2009/04/30/psa-peugeot-citroen-planning-diesel-hybrid-for-2011/ [Accessed 5 June 2009] Autonews. 2009. C3 Picasso developed in a ‘cave’. [Online] Bunkcley, N., 2008, GM says Toyota has the lead in global sales race, New York times, [online], available at: http://www.nytimes.com/2008/04/24/business/worldbusiness/24auto.html?_r=2&ref=business&oref=slogin [accessed at 20 May 2009] Calabrese G., 2001, “R&D globalization in the car industry”, International Journal of Automotive Technology and Management, Vol 1, No .1, 2001 Ciccone, G., Hauschildt, C., 2007, “R&D in Multinationals” Solvay Business School, Academic Year 2007/2008 Inside Line. 2008. Peugeot-Citroen To Open China R&D Center. [Online] Available at: http://www.edmunds.com/insideline/do/News/articleId=126063 [Accessed 5 June 2009] Jin Jing, 2008, PSA-Peugeot-Citroen to build shanghai R&D center, Gasgoo global auto sources, [online], Liker, J., 2004, The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS, [online], pp. 37, available at: http://www.si.umich.edu/ICOS/Liker04.pdf [accessed at 10 May 2009] Oltra, V., Maïden, S.J., 2009, “Variety of technological trajectories in low emission vehicles (LEVs): A patent data analysis” Peugeot Fans Club, 2001. Peugeot Cars History [Online] Available at: http://peugeot.mainspot.net/ [Accessed 9 May 2009] Perlmutter, H.V., 2001, “The Tortuous Evolution of the Multinational Corporation”. Columbia Journal of World Business, Vol 4, No 1, pp. 9-19 PSA Peugeot Citroen., 2009. Memento. [Online] PSA Peugeot Citroen. Available at: http://mediacenter.psa-peugeot-citroen.com/contents/docs/1240836954_PSAMementoGB_.pdf PSA; strategy and ambition 2010-1015, 2007, [online], pp 1-25, available at: http://www.psa-peugeot-citroen.com/document/presse_dossier/PSA%204%20septembre_online_UK1188888566.pdf [accessed at 9 may 2009] The Motor Report [ accessed 25 may 2009] Toyota Prius: 60 mpg, 2009, The Windsor Star, [Internet], 13 January. Von Zedtwitz, M., Gassmann, O., Boutellier, R., 2004, “Organizing global R&D: challenges and dilemmas”. Journal of International Management, 10 (2004), pp. 21-49

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