After a sharp devaluation of the Mexican currency, trying to reduce a large car manufacturer, the price paid by a Mexican-based suppliers. The supplier (Ventramex) is in a difficult position to move, because a large part of the cost in U.S. dollars calculated. The company must decide how the automakers react considering options that would increase the percentage of costs that are based in Mexican pesos.

After a sharp devaluation of the Mexican currency, trying to reduce a large car manufacturer, the price paid by a Mexican-based suppliers. The supplier (Ventramex) is in a difficult position to move, because a large part of the cost in U.S. dollars calculated. The company must decide how the automakers react considering options that would increase the percentage of costs that are based in Mexican pesos.
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from
John Kamauff,
Michiel R. Leenders,
David L. Ager,
Daniel D. Campbell
Source: Ivey Publishing
14 pages.
Publication Date: Sep 24, 1997. Prod #: 97D013-PDF-ENG
Ventramex and the Mexican peso crisis HBR case solution