Ford, Mazda and Allegheny

Paper Summary:

The first part of this paper reviews the merger between the two motor car companies, Ford and Mazda. The merger took place when Ford purchased 25 percent of Mazda at a time when the Japanese company was reeling from the effect of oil prices on its Wankel rotary engine-based cars. The second part of this paper reviews Allegheny's choice in whether to become a multinational company which markets products customized for individual regions, or a company with unique product lines in few regions and with few changes.

Contents:
Central Issue
Areas of Consideration
Analysis
Possible Alternatives
Recommendation

From the Paper:

"By the early 1980s, Ford decided (for a variety of reasons which largely stemmed from its desire to improve its foreign trade balance with Mexico) to construct a manufacturing plant in Hermosillo (located south of Tucson) which would manufacture Mazda-designed cars for sale in Mexico. The area had good infrastructure and an ample, but low-skilled, workforce. Eventually (in 1987), negotiations were complete, production was underway, and Ford and Mazda completed their agreement."

More papers on Ford, Mazda and Allegheny:

• Essay # 47590 : "Ford Pinto and Corporate Crime"
• Comparison Essay # 141124 : "Brand Failure and Success: Ford Edsel and the Ford Mustang"
• Essay # 26249 : "Ford, FDI and Avon"

APA Citation:

MLA Citation: