Ford and GM case study

Q: 1 Why are Ford and GM immersion the Russian car securities industry now? Why did they not invest earlier, and why do they do not elongate investment until the merchandise is bigger?

For any company breathing come to the fore out for the foreign market is because of any one out of globalization, reducing tariff all over the world, to increase the market persona, saturation of the local market, for getting the economies of scale of production, to use their tautologic capacity and use the resources where it is available at law cost.

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 commercialized vehicles remained relatively stable prior to, and implementation of market reforms in 1992, For example as per the skid study data in 2002 slightly 1.5 million new and used cars were bought in Russia, about 0.5 million were the car made from foreign manufacture.

- After sparing 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)

- Increasing the sell of foreign manufactured car.

If we see near current trend of selling of the cars in Russia

Built by:         2002         2003         2004 (1st Quarter)

        railyard units & market share         $ billion& market share         Thousand units & market share         $ zillion and market share         Thousand units & market share         $ Billion & market share

Russian Manufacturers         842 (59%)         3.7 (35%)         870(58%)         4.



3(35%)         222(68%)         1.4(47%)

Foreign Makes Made 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...

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