Autolatina: Ford and Volkswagen’s Joint Venture in Brazil Essay Example

a new potential market for u S.

Subcompacts. Titillation: A Perfect Marriage Ford and Vows strategy to combine operations reflected the partners' will overcome obstacles in the Brazilian market. By the asses, Ford and Volkswagen had a total of 15 vehicle, engine, and parts plants in Brazil AR Argentina, employing 75,000 people. Their combined annual production capacity was 900,000 cars and trucks, distributed through 1,500 dealers Their automotive and credit operations reported sales totaling LIST$ 4 bill In a market protected from external competition, Titillation became high successful.

It offered inexpensive models, including the Escort CAR, Sierra Vows Gold, Beetle, and aging midsized Ford Falcons. Titillation spent $35 million refitting a plant to build Beetles.

The growth in this market seem relied exclusively on tax incentives from the Brazilian government. The products were adapted for a smaller engine. The goal was to manufacture models at lowest possible cost. Plant operations were organized by size Of vehicles. Ford had been relying VI to build small cars while Ford was supplying the larger Escort and a lie cup trucks.

The two partners even produced shared products. For instance, Volkswagen was prod icing Ford Versailles (derived from Santa), and for those producing VI Logos (derived from Ford Escort). Marketing and sales staff were unified. Specialists and consultants were I to accommodate the two different company cultures.

Production of Titillation cars rose substantially over time. In 1994, it see both companies had succeeded in identifying the key factors contribution Titillation's success: inexpensive, non-competing models, a growing racket, and sharing Of manufacturing and profits.