Joint Venture Operations

Through the earlyfall of 1990, joint venture cooperative efforts between American and Japanese automobile manufacturers were quite limited in number. The Japanese automobile manufacturers, however, have an extensive record of joint venture cooperation with European automobile manufacturers.

Some joint venture activity between American and Japanese automobile manufacturers, however, has been initiated. Ford Motor and Nissan Motor have entered into a joint venture operation to manufacture a sportutility vehicle in Spain.37 The vehicle will be sold primarily within the European Economic Community.

Ford and Nissan are also proceeding toward the initiation of a joint venture agreement to be sited in the United States.38 This joint venture operation will produce minivans to be marketed in the United States.

37R. Johnson, "Ford and Nissan Will Build SportUtility Vehicle in Spain," Automotive News, 24 July 1989, 6.

38L. Kertesz, and L. Clark, "FordNissan MiniVan Venture," Automotive News, 11 September 1989, 3, 57.

Ford is also enlisting the cooperation of Mazda in the revamping of its Escort/Tracer production program.39 Mazda is assisting Ford in the redevelopment of the Escort/Tracer production processes around the world.

General Motors is somewhat belatedly entering into discussions concerning joint venture operations with the Japanese, although no

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managers and American labor unions, if joint venture employees in the United States are unionized.6. For the success of JapaneseAmerican joint venture operations in automobile manufacturing, it is essential that the American automobile develop an even greater commitment to quality control.7. A further willingness on the part of American automobile manufacturers to embrace hitech manufacturing processes will be required, if they are to cooperate successfully with Japanese automobile manufacturers in joint venture operations. 8. Through the earlyfall of 1990, joint venture cooperative efforts between American and Japanese automobile manufacturers were quite limited in number. Some joint venture activity between American and Japanese automobile manufacturers, however, has been initiated. 9. Ford Motor is the most active American automobile manufacturer with respect to the initiation of joint venture activities with Japanese automobile manufacturers. 52 10. General Motors is somewhat belatedly entering into discussions concerning joint venture operations with the Japanese, although nothing has yet been decided. 11. Chrysler has in place an agreement with Mitsubishi to sell some Japanese manufactured automobiles
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Approximate Word count = 1367
Approximate Pages = 5 (250 words per page)

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