Country Report Indial
Q1
Motives and objectives of Ford entering its collaborative venture with Volkswagen
Prior to the formation of the Autolatina JV, both VW and Ford had long been investors in Argentina and Brazil. Both companies had major vehicle-manufacturing subsidiaries in the two countries. Each of these subsidiaries, in turn, had a number of subsidiaries of its own, engaged in financing or in component manufacturing. By 1985, Ford and VW operations both had something in common: they were doing poorly financially in a bad economic environment.
Q2
What type of collaborative venture Ford entered with Volkswagen. Advantages and disadvantages for this jv from Ford perspective.
In 1985, Ford and VW separately concluded that something dramatic had to be done to improve the situation, and they began informal discussions concerning a possible JV. The basic rationale for the JV was that, in the closed-to-import markets of Argentina and Brazil, Ford and VW could attain econoomies of scale and other efficiencies by combining their organizations, by using common components, and by eventually building Ford and VW vehicles off common platforms. VW platforms would be used for small cars and Ford platforms for mid-size cars. In mid 1986 Ford and VW signed a letter of intent; in May 1987 they signed the JVA. The Closing took place on July 1, 1987, and the Autolatina
JV was born.
Advantages Disadvantages You gain access to other Other JV Party gains
JV Party's knowledge and access to your knowledge resources and resources JV can result in There are administrative economies of scale and inefficiencies inherent in other efficiences JVs: * Much time and resources to set up * Much time and resources to
Motives and objectives of Ford entering its collaborative venture with Volkswagen
Prior to the formation of the Autolatina JV, both VW and Ford had long been investors in Argentina and Brazil. Both companies had major vehicle-manufacturing subsidiaries in the two countries. Each of these subsidiaries, in turn, had a number of subsidiaries of its own, engaged in financing or in component manufacturing. By 1985, Ford and VW operations both had something in common: they were doing poorly financially in a bad economic environment.
Q2
What type of collaborative venture Ford entered with Volkswagen. Advantages and disadvantages for this jv from Ford perspective.
In 1985, Ford and VW separately concluded that something dramatic had to be done to improve the situation, and they began informal discussions concerning a possible JV. The basic rationale for the JV was that, in the closed-to-import markets of Argentina and Brazil, Ford and VW could attain econoomies of scale and other efficiencies by combining their organizations, by using common components, and by eventually building Ford and VW vehicles off common platforms. VW platforms would be used for small cars and Ford platforms for mid-size cars. In mid 1986 Ford and VW signed a letter of intent; in May 1987 they signed the JVA. The Closing took place on July 1, 1987, and the Autolatina
JV was born.
Advantages Disadvantages You gain access to other Other JV Party gains
JV Party's knowledge and access to your knowledge resources and resources JV can result in There are administrative economies of scale and inefficiencies inherent in other efficiences JVs: * Much time and resources to set up * Much time and resources to