In large companies, there has always been the need for effective negotiation, in order to grow together, or failing that, to enhance their businesses for mutual growth, thanks to the exchange of information in which two or more parties with common interests make a effective negotiation, and it will be a win-win, for both parties.
We will study the participation of volvo in the United States market, how much it cost it to enter, and what it has obtained with this strategic alliance for the improvement of its company.
Volvo is a very well-known manufacturer of cars and heavy trucks, and one of the biggest competitors worldwide. He had always wanted to enter the US market, after several unsuccessful attempts, he acquired a bankrupt company WMC, and the heavy division of GM. Although it did not have much market share, but it did its job.
In the heavy truck industry it is divided into light, medium and heavy, whether they were cargo on roads, construction, collection, among others.
THE WORLDWIDE HEAVY TRUCK INDUSTRY
In the heavy truck industry there are different classes, and types, for different tasks to be developed, differently structured, in the United States it was dominated by conventional trucks, and in Europe they already favored the folding cab design, since it allowed a greater visibility of its radius is shorter to turn, etc., there were many differences, in Europe diesel-based trucks were already used for operating costs, while in the United States they were still on gasoline until the early 1980s, than class 8 trucks already They came equipped like this, and in the late 1990s European and American technology were unified in engines with capacities of 12 to 16 liters and 400 to 500 horsepower, and environmental demands increased development costs.
The largest buyers of trucks included, transportation companies, distribution companies, construction companies, waste management, among others.
The third of the world truck market was represented by Western Europe and North America, exports of heavy trucks tended to be regional, between Europe, North America, Latin America and Asia, although between continents it was very rarely, what was increasing was trade of transmission train between the continents.
Although sales were cyclical, but their demand decreased in economic contractions. Although small buyers from the United States almost always bought products made in the United States, and wanted something very personalized, in contrast to Europe, large fleet companies were less common. Usually when the truckers made short trips, they were the same owners of the trucks that they were driving and they were associated with large federations of independent truckers. On the contrary, in the international market they were generally employees of large companies, although they almost always drove their own trucks.
The main European manufacturers in the year 2000 included, Daimler-Benz (union of Chrysler with Mercedes-Benz), Volvo, Renault, Scania, MAN, Iveco and DAF; the main American manufacturers were Freightliner (also owned by Daimler and Benz), Paccar (Kenworth and Peterbilt), Navistar (International), Mack (RVI) and Volvo. Globally there had been a significant consolidation for truck manufacturing, but it had declined significantly for Europe, and also for the United States. And although European manufacturers had managed to penetrate the United States, in Europe the presence of the United States was limited.
Speaking jointly of Volvo, its main function was to manufacture cars, founded in 1925, years later the truck range was added, basically imitating a passenger truck, and from there its range grew until it became a diversified industrial group, becoming a conglomerate of the eighties and entered such dissimilar industries as financial, processed food, matches and pharmaceuticals. In those years, Volvo was a big manufacturer of trucks around the world, thus reaching its maximum in Europe, the United States, in Asia very weakly, but there were plans for greater exports. They also already had four factories, which manufactured all kinds of engines and trucks.
Volvo's presence in the United States dates back to 1995, when a passenger car was first exported, it also decided to sell trucks using an existing network of dealerships that distributed the Volvo brand. When Volvo runs out of partners, it decides to buy the defunct White Motor Corporation, which for years was the leading manufacturer of trucks as well, an economic downturn in the 1970s caused them to go bankrupt, although their modern assembly facilities were of great help, needed improvements for production. It also acquired GM's heavy truck business.
Volvo initiated an investment program to cover, investment, marketing and organizational changes, in order to prepare a new range, to encourage the movement of Volvo engines and other components manufactured in the company, to be sold in the United States market, although not it worked. Although Volvo itself considered itself a leader in quality, features and manufacturing processes, as well as safety and environmental performance, market share and profitability were nonetheless unsatisfactory, and they planned strategies to increase them.
* Based on Harvard Business.
