RenaultÂ’S Logan Car: Managing Customs Duties for a Global Product

Taxation- rise of high taxation to consumers when importing vehicle to another country is becoming a challenge and a threat to the company since consumers will prefer local brands which will cost less tax.

shipper pays only such U.S. import duties as are applicable to the value added by

Argentina is one of the top vegetable oil producers in the world-due to low domestic consumption and high productivity- with Chile as a main buyer. After a tariff reclassification in 1999, the Chilean price band system (PBS) resulted in higher customs duties of up to 64.41%, thus violating the limit set at 31.5%. As a result, this issue was submitted to the WTO .

Measures which affecting goods. In 2005 it was 3.5 percent, down from 4.4 per cent in 2000. More than 47 per cent of tariff lines are duty free. The highest tariffs apply mainly to textiles and clothing and to passenger motor vehicles and related items. Some 96.5 per cent of tariff lines are bound and Over 99 per cent of tariff rates are ad valorem. But the specific rate applies only to cheese and curd, the compound rate applies to used cars

General Motors has set an unimaginable goal of making $10 billion within a year after being bailed out by the federal government in just in three years. According to people who have already seen the figures, GM is likely to report 2011 net income of about $8 billion. This is GM highest net income ever. By the federal government bailing them out and helping them to regenerate their business; GM was able to shed $40 billion in obligations and most of all become debt free. “Now we are targeting our best in-class peers,” said GM’s Mr. Ammann, (Kinicki, A.,& William B., 2003) referring to South Korea’s Hyundai Motor company and Germany’s BMW AG, both of which are estimated to have had a return sake of 10% in 2011.

The aim of this report is to discuss about how GENERAL MOTORS (GM) failed to perform in the previous year’s even though being one of the oldest automobile manufacturer in the history, and the issues will be clarified with pertinent theories and to conclude my analysis

Sergio Marchionne is a visionary man full of drive, a trait necessary for leaders (Kumar, 2009). Upon taking the reins at Chrysler Group on 10 June 2009, Marchionne had a vision of Chrysler reclaiming its position among the top automobile manufacturing companies in the world. To achieve this goal, Marchionne borrowed $7.6 billion from both the Canadian and United States governments (“2011 All-star”, 2011, para.7). By mid-2010, Chrysler had launched sixteen new vehicles to be presented for the 2011 model period. He even managed to pay the loan to the two governments six years in advance. Moreover, because of Marchionne’s vision, as from mid-2010 to the end of 2011, Chrysler Company had about nineteen straight months of year-over-year sales increases (“2011 All-star”, 2011, para.9). There was a rise in demand for the Company’s Jeep motor vehicle among automotive

Renault seeks to order CKD-parts from various suppliers, acquire them at a competitive price and in enhanced quality; therefore CKDs were not only ordered form the mother site in Romania but also from local plants. Domestic vendors or other regional sites were also taken into consideration. Sourcing parts from the mother site in Romania could come with a 0% duty however outbound logistics could eat into theses saving. Purchasing parts from local suppliers than using CKD parts would also depends on the competiveness of the supplier in each country. A volume increase correlated to the increases in competiveness of local suppliers. Cost reduction in operations came about due to Renault’s usage of segments of the B-platform, which was also used for the Nissan Micra and Renault Modus. Depending on the end market, Renault would use either its own name or the brand name Dacia. Foreign Trade Related Risks Inflation and foreign exchange related risks are very dominating risk factors which are closely watched and analysed. Here the inflation rate of the local currency and also the exchange

This essay aims to use two events in Ford Motor Company to outline how global business environment has changed during the two decades. The first event introduces that Ford Motor Company bought Volvo cars in 1999, and the second event indicates that Ford Motor Company sold Volvo to a Chinese car manufacturer, Zhejiang Geely Holding Group Co., Ltd (Geely) after the financial crisis in 2010.

Ghosn closed plants, laid off workers, broke up long-standing supply networks, and sold off marginal assets to focus on the company’s core business. Nissan was now breaking the cultural norms of keiretsu investments. Cutting down costs was just the first step in Nissan’s recovery. Actually changes were introduced in every corner of the company, from manufacturing and engineering to marketing and sales: update of Nissan’s car and truck lineup; introducing new, dynamic designs; quality improvement. These strategies quickly polished Nissan’s image in the marketplace, and re-established the company in the minds of consumers as a leader in innovation and engineering.

An example of diversity within the company, Nissan’s corporate officers are from a range of nationalities and have extensive experience in overseas operations. Nissan viewed the officer’s abilities to speak first-hand to the unique constraints and opportunities in varies markets a strength that is necessary in the management of a large global operation. Complementing this focus on flexibility, Nissan adopted a build-to-stock strategy for just a few products and a build-to-order strategy for the rest. Not only did this production strategy help it to simplify Nissan’s operations and product offerings, but it contributed to an increase in sales (Simchi-Levi, D., & Schmidt, W. (2013, August

Local production within each region is assumed to result in no import duty. Thus, production from Brazil, Germany, and India can be sent to Latin America, Europe, and the rest of Asia without Japan, respectively, without incurring any import duties. Duties apply only to the raw material, production, and transportation cost component and not to the fixed cost component. Thus, a product entering Latin America with a raw material, production, and transportation cost of $10 incurs import duties of $3.

Carlos Ghosn was credited for successful management of Japanese firm Nissan to a profitability which earned him a well known name called "TurnaroundArtist." Even though he was an outsider and lack a clear understanding of the traditional working methods of the Japanese firms, Carlos did a recommendable work which brought the company into sense of urgency in management. According to IBSCDC (2005) when Carlos was the CEO for the Nissan Company, he managed to reduce the firm's debts of about $19 billion to almost zero.

The combination made sense that both companies main sales territories and production were corresponding. Renault needed Nissan and Nissan needed Renault due to the production side of the pattern and on a global basis that held more then nine

During March 1999, Brazilian Carlos Ghosn took over as the first non-Japanese Chief Operating Officer of Nissan, when Nissan had been incurring losses for seven of the prior eight years. Many of the industry analysts expected a culture clash between the French leadership style and his new Japanese employees. Analysts said, because the financial situation at Nissan had become critical so the decision to bring Ghosn in came at the worst possible time. The continuing losses were resulting in debts (approximately $22 billion) that were shaking the confidence of suppliers and financiers alike. Furthermore, the Nissan brand was weakening in the minds of consumers due to a product