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In: Operations Management

Using internet sources, find three automobile manufacturers in the world (for example, Toyota, Mercedes, Ford). Work...

  1. Using internet sources, find three automobile manufacturers in the world (for example, Toyota, Mercedes, Ford). Work out the kind of the marketing activities and brands they use in each continent and summarize their global strategy in terms of similarities and differences between the continents.

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Expert Solution

General Motors, Ford Motor Company, and Fiat Chrysler Automobiles are called "Big Three" because they are the largest automakers in the United States. They are now the world's third largest, with GM and Ford still in the top five. The Big Three vary not only their size and geography but also the business model. The trio are based in the Detroit area. Most of their operations are combined with YouTube, Worker and U.

For 56 years, Ford has been the second-largest carmaker in North American sales after being overtaken by Toyota in 2007. This year, Toyota is making more cars than GM. GM is still selling Toyota. At that time, GM had its 77th consecutive annual best sales. For the first quarter of 2008, Toyota finally overtook GM in sales. In the North American market, Detroit carmakers maintain the top three, despite their market share falling. Honda overtook Chrysler in fourth place in the United States in 2008. Since then, amid controversy over Toyota's involuntary withdrawal, Toyota has returned to fourth place in sales, with Honda in fifth place, which allows Detroit to take third place.

Working in the Union can lead to higher labor costs than other multinational carmakers, including those in North America. The 2005 Port Report estimates that Toyota's leading position in labor productivity has a cost advantage of $ 350- $ 500 per US manufacturer. UAW agreed to double pay in recent negotiations in 2007. Delphi, who was ousted from GM in 1999, filed for bankruptcy after UAW refused to cut his paycheck and GM expected to be responsible for a $ 7 billion deficit. .
To improve profitability, Detroit automakers have struck deals with unions to cut wages while committing themselves to pensions and health care. For example, GM at the same time increased the entire cost of health insurance for their employees, survivors, and retirees because the United States did not have a universal healthcare system. With most of these plans being chronic profits, in the late 1990's, companies tried to provide pension packages for older workers and entered into an agreement with UAW To transfer the pension debt to an independent trust. In 2009, the CBC announced that non-iodized Japanese carmakers, with US workers and fewer retirees, would continue to benefit from the Big Three.


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