To be considered as a multinational corporation, company has to show some physical presence in different nations. There are many companies, such as Toyota, Ford and Global Motors which operate in different countries all around the world (North and Latin America, Europe/Africa, Oceania & Middle East, Asia) (1) + (2). One of the advantages of being in global market is not only establishing foreign subsidiaries in host countries, but it´s also creating new jobs for people in the host countries. A perfect example is Japanese Toyota which has a seat in Japan but also form much oportunities for unemployed people in the USA by launching their subsidiaries.
The success of automotive companies in different countries depends on many factors. Companies must adapt to socio-cultural, economic, legal and environmental forces. The most important is probably sociocultural adaptation. As the Toyota´s summary about the overseas model line up shows, Toyota´s model Land Cruiser Prado is almost unknown in North America but it´s very well produced overseas in Europe. On the other hand, the other model Camry is exactly the opposite (3). Companies has to find the primary needs and interests of people.
Next, the key success of any company is to find the best time to export or import, depending on the exchange rate. The high value of the dollar is good for domestic traders and vice versa.
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3 comments:
And sometimes automakers will sell or not sell models in a country because they think that country wouldn't buy it, but there are always people who want the model anyway: My car back home was a Volkswagen Golf TDI. For some reason, VW and mercedes are the only manufacturers in the US who think there is a market for diesel cars (not trucks) when there is actually quite an enthusiast community.
Diesel cars make up about 50% of the european market share, this article quotes US diesel market share as 3.2%. http://online.wsj.com/article/SB10001424053111904537404576555100887756400.html?KEYWORDS=fiat+chrysler
Yes, you´re right. I also think that according to lifestyle in the recent years, people have shown environmentally friendly behavior. Therefore, the manufactures have started focusing on environmentally friendly cars, such as Toyota´s Hybrid etc. which can affect producing Diesel cars in the US.
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