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Emerging markets, emerging opportunities

Strategies for automotive partnerships in today’s global marketplace


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Increasing globalization of the automotive industry is changing the dynamics of traditional strategic partnerships, particularly cross-border joint ventures (JVs) between Western companies and their cohorts in emerging markets.

Outside of basic market entry requirements, strategic partnerships today are becoming more focused on addressing a specific need, such as gaining access to a new technology, quickly securing a local presence to cost-effectively serve stakeholders and customers, collaborating on product development initiatives while sharing capital risk, and accessing highly skilled and/or low-wage workers.

What do changing objectives mean for companies that are considering a new strategic partnership? What should the ownership structure look like? How should partners that are focused on developing new technologies share people, processes and other resources while maintaining barriers that protect intellectual property? How does management know when it is time to dissolve the relationship?

In this report we examine how the nature and structure of strategic partnerships have changed, and discuss what executives should consider when weighing the pros and cons and evaluating the details of establishing new relationships.

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