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Words: | Submitted: Fri Jan 28 2005
... Russia. For example, Ford is producing a vehicle and intends to sell it for $10,900. While this is considerably more then Russia's average vehicle cost of $5000 to $ 8,000, Ford feels its price is justifiable based on the poor reputation of the Russian cars. Evaluation of the country's strategy involved in the Dilemma Going Global Vehicle manufacturing is rapidly becoming a global business. This trend is being fueled by such factors as the industry's efforts to access cheap labor and emerging markets in developing countries, as well as consolidation of companies. Labor unions involved in various aspects of vehicle materials and manufacturing are consolidating and strengthening their international ties. Rapid growth in vehicle ownership is expected in Asia, Latin America and Eastern Europe. Analysts predict that the number of corporations in the automotive industry may be reduced by about half in the coming years through mergers, such as the recent ...
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