Ford and GM case study

Q: 1 Why are Ford and GM preoccupation the Russian car securities industry now? Why did they non invest earlier, and why do they do not stretch come out investment until the merchandise is bigger? For every company eupnoeic come to the fore out for the foreign merchandise is because of any one out of globalization, reducing tariff all oer the world, to increase the market persona, saturation of the local market, for getting the economies of collection plate of production, to use their tautologic capacity and use the resources where it is available at law court. The several(prenominal) factors for the Ford and GM moved to Russian market, out of preceding(prenominal) mentioned are as follow: - The demand for cars and light exploit vehicles remained relatively stable prior to, and implementation of market reforms in 1992, For ex adenosine monophosphatele as per the skid study data in 2002 slightly 1.5 million new and used cars were bought in Russia, somewhat 0.5 mi llion were the car made from foreign manufacture. - After scrimping crisis in 1997 there is a stable growth of economy. - The Russian government has increased import duty of 35% which resulted the more(prenominal) cost for the foreign made car.(As per the Data in case study) - change magnitude the sell of foreign manufactured car. If we see near true trend of selling of the cars in Russia Built by:         2002         2003         2004 (1st Quarter)         railyard units & market allocate         $ billion& market share         Thousand units & market share         $ zillion and market share         Thousand units & market share         $ one million million & market share Russian Manufacturers         842 (59%)         3.7 (35%)         870(58%)         4.

3(35%)         222(68%)         1.4(47%) Foreign Makes make in Russia         11 (0.8%)         0.1(1%)         54(3.6%)         0.6(5%)         22(6.5%)         0.3(10%) New Imports         117 (8.2%)         2.7 (25%)         170 (11.4%)         3.5(28%)         43(13%)         0.9(30%) Used Imports         447(31%)         4(38%)         400(27%)         4(32%)         41 (12.5%)         0.4(13%) Total          1417... If you want to get a sufficient essay, ensnare it on our website: OrderCustomPaper.com

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