Publications
Publications
- April 1994 (Revised April 1995)
- HBS Case Collection
Volkswagen de Mexico's North American Strategy (A)
Abstract
In 1988, Volkswagen (VW) consolidated its North American operations in Puebla, Mexico, after shutting down its plant in Pennsylvania. Volkswagen de Mexico had been in operation since the 1960s, but produced almost exclusively for the Mexican market. In the late 1980s, VW began to restructure the Mexican plant to supply the United States and Canada (which had been importing from Germany) and to maintain its dominance of the Mexican market. The North American Free Trade Agreement put additional pressure on VW to start sourcing in North America. The case traces the history of VW in the United States and Mexico and the company's strategy in the context of Mexican government regulations, free trade, and a weak presence in the U.S. market. Ends in August 1992, after VW had just resolved an unexpected and bitter month-long labor dispute that delayed the introduction of new cars to the United States. A rewritten version of an earlier case.
Keywords
Organizational Change and Adaptation; Trade; Manufacturing Industry; Auto Industry; Canada; Germany; United States; Mexico
Citation
Shapiro, Helen. "Volkswagen de Mexico's North American Strategy (A)." Harvard Business School Case 794-104, April 1994. (Revised April 1995.)