When the big three Japanese auto companies initially expanded into the U.S., they changed their strategies to meet the needs of the new market. Similarly, BMW and Mercedes changed their strategies when they began to manufacture in the U.S. Now, as China and India become growth markets, the world's automakers are responding with new strategic changes. Already, Ford has expanded its operations in China. Similarly, Daimler AG is ramping up production in China, while Nissan is expanding its lineup and increasing production capacity to meet new demand. Toyota has also reported a strong increase in its sales in China. Perhaps one of the biggest changes for automakers going forward will be the move to electric vehicles. Battery start-up Britishvolt recently announced that it will be building a gigafactory in Great Britain to produce batteries for electric vehicles. The new factory is slated to open in 2023 and is expected to factor into the long-term strategic plans of global automakers producing in the United Kingdom.

Consider whether, given that consumer preferences in America appear to be quite different from those of Japanese consumers, there any way for automakers to realize the traditional benefits of selling in multiple markets?

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You raise an interesting point about the challenges automakers face in adapting their strategies to different consumer preferences across global marke... View the full answer