Ford and the Global Strategies of Multinationals: The North American Auto Industry

By Isabel Studer-Noguez | Go to book overview

Notes

1Introduction
1
The number of manufacturing affiliates multiplied from 3,500 in the early 1960s to about 270,000 in 1995 (UNWIR 1994:130-1, 1995:7). MNEs have also become truly “multinational, ” not only in the scope of their operations but also in terms of their national origin. About 90 percent of MNEs are headquartered in developed economies, and approximately two-fifths of foreign affiliates are located in developing countries (Strange 1996:50; UNWIR 1996:7).
2
In 1993, sales of foreign affiliates reached $6 trillion and exports reached $4.7 trillion (UNWIR 1994:131).
3
These figures include intra-firm transactions in services (UNWIR 1993:164-5). Over the past 50 years, the composition of intra-firm trade has also changed, with that in natural resource commodities gradually declining in favor of that in medium- and high-technology manufacturing industries that have undergone rationalization on a worldwide scale (UNWIR 1996:143).
4
It represents about 20 and 12 percent of manufacturing GDP in Canada and Mexico, respectively.
5
Automotive trade represents over 20 percent of each country's total exports.
6
This study was undertaken before the merger of DaimlerChrysler in 1998. Thus, references to the US Big Three throughout the book refer to GM, Ford and Chrysler.
7
Canada, an industrialized, small and open economy; Mexico, a newly industrialized economy, with Latin America's second largest population.

2Ford Motor Company's multidomestic strategy
1
Ford designed machines and tools to produce a single part, for virtually every part and every production process, “in some cases to an absurd degree” (Womack et al. 1990:37).
2
By the 1960s, fixed capital, raw materials, and components accounted for 70-80 percent of the total production costs of a vehicle, and labor for the remaining 20-30 percent (Dyer et al. 1987:15).
3
Although they have changed over time, since the 1970s minimum-scale economies at the plant level have stabilized at 220,000 vehicles per year on two-shift operations.
4
In 1922, for instance, Henry Ford estimated that 85 percent of his factory workers required less than 2 weeks of training, and 43 percent required less than one day (Dyer et al. 1987:35).
5
These practices are also known as Taylorist methods of labor control (see Dyer et al. 1987:25; Hoffman and Kaplinsky 1988:330; also Langlois and Robertson 1989:367; Womack et al. 1990:26-38). These practices “assume that workers find work painful, and that some coercion/compensation incentive structure will motivate workers to an acceptable level.” This is one reason why in the early days Ford offered wages

-235-

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Ford and the Global Strategies of Multinationals: The North American Auto Industry
Table of contents

Table of contents

  • Title Page v
  • Contents ix
  • Figures xi
  • Tables xiv
  • Acknowledgments xvii
  • Abbreviations xix
  • 1 - Introduction 1
  • 2 - Ford Motor Company's Multidomestic Strategy 14
  • 3 - Ford of Canada 30
  • 4 - Ford of Mexico 51
  • 5 - The 1970s 73
  • 6 - Ford's Survival Strategy 98
  • 7 - Ford's Global Strategy 118
  • 8 - Successful Bargaining in a Situation of Increasing Interdependence 142
  • 9 - Export Dynamism 161
  • 10 - A North American System of Production 187
  • 11 - Conclusion 218
  • Notes 235
  • Bibliography 254
  • Periodicals (Newspapers, Newsletters, and Magazines) 275
  • Appendix 1 276
  • Appendix 2 302
  • Appendix 3 326
  • Index 351
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