2. Why do you think the kit-assembly approach was not more successful in Russia? It was a...
Question:
2. Why do you think the kit-assembly approach was not more successful in Russia? It was a common automaker production/distribution strategy employed in much of the world's emerging markets, but was not working in Russia. Moscow-General Motors Corp., the world's largest automaker has sealed a $332 million deal to build cars in Russia, a move seen as a show of confidence that Western companies are ready to take a chance here again, three years after the financial crisis that drove many of them away. GM's president, Rick Wagoner, flew to Moscow to meet Prime Minister Mikhail Kasyanov of Russia and then signed documents Wednesday creating a joint venture with AvtoVAZ, Russia's largest domestic car manufacturer, culminat- ing years of difficult negotiations. -"GM Joint Venture Shows Confidence in Russia," The Washington Post, June 28, 2001.
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Fundamentals Of Multinational Finance
ISBN: 9780321541642
3rd Edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman