First, I think that the most important motive is the opportunity offered by the American market. Indeed, even if I can't find any numbers of that, I'm sure that there are more cars per capita in the US than in France. This specificity of the North-American car market offer a great opportunity for any car manufacturer. Also, general awareness grows all industries to rethink their production systems in order to reduce their impact on the environment.
In the USA, even if the roaring car culture holds a central place in the culture, more and more drivers are turning to green vehicles (electric or hybrid). Also, oil prices continue to rise, in a gloomy economic situation. So, many users turn to hybrid and electric vehicles both by moral concern, but also for economic reasons.
The second motivation is the search for profits. As we can see through the news, the automotive market in France is more than inert. Sales of new cars decreased from month to month, and some manufacturers are starting to include downsizing or plant closures (we
can think of the PSA plant located in Aulnay sous Bois, north of Paris).
[...] The automotive industry is a very competitive industry dominated by a few big names (Renault-Nissan, Peugeot, General Motors, Ford When one of these brands want be developed in a new country, it must compete with established brands and which do not want to share their market, but also face the bureaucracy of the targeted country, in which the regulations (that either on the approval of vehicles, labor law, the right of communication . ) are very different from their home country. Currently, a company must 27 show courage and tenacity if it wishes to attack new markets, but it seems few opportunities for developments open to them in their countries of origin References List Baum & Associates. [...]
[...] has a policy of tariff protection quite strong, which implies additional costs for our French manufacturer. The solution is to pass these costs on the product, this would make the products uncompetitive or reduce its margins, which is not really logical of the export, although it may be a sacrifice if the company really wants to develop long-term in the USA 2 / Relocation: besides export only products, the French manufacturer may choose to implement one or more plants, manufacturing or assembly on American soil, as Renault is doing it in Algeria to increase its presence in the African market; presence there began many years ago with exports. [...]
[...] I think the best way for the French manufacturer is selling dollar. It would make more sense from a business perspective. From a financial point of view, there are many riskhedging products on exchange rate. Inflation is another problem that exchange rates. This could affect supply costs and operating expenses. They would add to the sales price of the vehicle. According to the decision concerning the hedging strategy, this could increase the selling price (if sold in euro), or reduce the margins of the manufacturer (if sold in dollars at constant prices) Explain how personal selling may differ in the US from how it is used in France? [...]
[...] Then gradually, dematerialization leaves room to meet with vendors in person. From this point, the company has two possibilities for sellers: either send expatriates on site or hired native speakers of the target countries. The two possibilities are experiencing advantages and disadvantages (HOLLENSEN, 2007). First, expatriates have excellent product knowledge, they are trained to sell this product and can be more easily controlled by the headquarters. By cons, it involves high costs by the company (transport, training and replacement of staff). [...]
[...] (2012, April 5). March 2012 Dashboard. Retrieved from Hybridcars.com: http://www.hybridcars.com/news/march-2012-dashboard-44059.html Boursorama. ( 13). PSA Charts. Retrieved from Boursorama: http://www.boursorama.com/bourse/cours/graphiques/historique.phtml?symbole=1rPU G CULLEN, J. B. (1999). Multinational Management : A Strategic Approach (2nd ed.). Cincinnati: South-Western. [...]
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