In 1988, Volkswagen (VW) consolidated its North American operations in Puebla, Mexico, after shutting down its plant in Pennsylvania. Volkswagen de Mexico has been in use since the 1960s, but produced almost exclusively for the Mexican market. In the late 1980s, Volkswagen began to restructure the Mexican plant to supply the United States and Canada (which had been imported from Germany), and his dominance of the Mexican market to maintain. The North American Free Trade Agreement set additional pr … Read more »

In 1988, Volkswagen (VW) consolidated its North American operations in Puebla, Mexico, after shutting down its plant in Pennsylvania. Volkswagen de Mexico has been in use since the 1960s, but produced almost exclusively for the Mexican market. In the late 1980s, Volkswagen began to restructure the Mexican plant to supply the United States and Canada (which had been imported from Germany), and his dominance of the Mexican market to maintain. To start the North American Free Trade Agreement additional pressure on VW sourcing in North America. The case shows the history of VW in the U.S. and Mexico and the company in connection with the Mexican government regulations, free trade strategy, and a weak presence in the U.S. market. Ends in August 1992, after the VW only an unexpected and bitter month-long labor dispute that delayed the introduction of new cars in the United States had dissolved. A rewritten version of an earlier case.
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Helen Shapiro
Gordon Hanson
Source: Harvard Business School
23 pages.
Publication Date: Apr 11, 1994. Prod #: 794104-PDF-ENG
Volkswagen de Mexico in North America Strategy (A) HBR case solution

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