Jose Ignacio Lopez de Arriortua Case General Motors is one of the world's most dominant automakers from 1931. After 1980s economic recession the main goal for automobile companies was cost reduction. Customers became more price-sensitive. Also Japanese competitors came into market with the new effective system of production. So market was highly competitive and directed toward price reduction. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing
end of the case when VW builds the factory in Brazil. VW is still in the dominant power position and they are working side-by-side with suppliers in the factory building alliances and stronger relationships. By working together, on the same factory floor, VW is able to learn a great deal about how the suppliers do their work and give VW a chance to meet and know the actual employees of the supplier.