MAK Brake Lining Company Crisis

MAK Brake Lining Company (MAK) is facing a crisis. An American auto parts maker, Federal Mogul, had just acquired a company that had signed a ten year agreement with MAK allowing MAK to manufacture brake pads under the Ferodo brand name. If Federal Mogul decided not to renew the license agreement, MAK would be in serious trouble if it did not take the necessary precautions. At the time, MAK was almost completely dependent on the Ferodo brand name with about 30 percent of its business coming from exports of brake linin

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