1. What were Fords motives and objectives for entering its collaborative venture with Volkswagen? Evaluate the extent...

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1. What were Ford’s motives and objectives for entering its collaborative venture with Volkswagen? Evaluate the extent to which Ford accomplished these objectives.
2. What type of collaborative venture did Ford enter with Volkswagen? What were the advantages and disadvantages of this venture from Ford’s perspective?
3. What strengths did Ford and VW bring to the Autolatina venture? Did these firms have any weaknesses? Elaborate.
4. Did Ford commit any blunders in its Latin American operations? Specify.
5. What can other managers learn from Ford’s experience regarding international collaborative ventures? What should Ford do now?

Autolatina, a joint venture between Ford and Volkswagen (VW), was created in Brazil with several goals in mind:
■ Serve the highly protected car markets of Brazil and Argentina from within.
■ Establish an unbeatable presence in Latin America.
■ Share the risk of operating in a volatile market.
■ Offer a wide range of car models to Latin American customers.
Soon after Autolatina founded the venture, its market share reached 60 percent in the Brazilian market and 30 percent in Argentina.

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International Business and the New Realities

ISBN: 978-0136090984

2nd Edition

Authors: S. Tamer Cavusgil, Gary Knight, John R. Riesenberger

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