個案總覽

In 1988, Volkswagen (VW) consolidated its North American operations in Puebla, Mexico, after shutting down its plant in Pennsylvania. Volkswagen de Mexico had been in operation since the 1960s, but produced almost exclusively for the Mexican market. In the late 1980s, VW began to restructure the Mexican plant to supply the United States and Canada (which had been importing from Germany) and to maintain its dominance of the Mexican market. The North American Free Trade Agreement put additional pressure on VW to start sourcing in North America. The case traces the history of VW in the United States and Mexico and the company's strategy in the context of Mexican government regulations, free trade, and a weak presence in the U.S. market. Ends in August 1992, after VW had just resolved an unexpected and bitter month-long labor dispute that delayed the introduction of new cars to the United States. A rewritten version of an earlier case.

Supplements the (A) case.

In an effort to capitalize on the entrepreneurial opportunity presented by the Brazilian government's trade liberalization, a Panamanian automobile trading company launched a business of importing the Russian made Lada cars into Brazil. The company confronts a complex political and economic environment and strong competition from the existing automobile producers. Presents the business challenges and opportunities accompanying trade liberalization. Reveals the competitive dynamics in environments undergoing economic transformation.