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Published by: Institute for Management Development (IMD)
Originally published in: 1996
Version: 15.07.2003
Length: 18 pages
Data source: Field research

Abstract

This is the first of a four-case series (IMD-3-0644 to IMD-3-0647). The SEVELNORD case series present the evolution of the relationship between two major European car manufacturers, Fiat and Peugeot, in their attempt to enter the growing market segment of the ''monospace'' (passenger minivans) in the early 1990s. The first case (A) describes a joint venture set up between Fiat and Peugeot in 1978 to manufacture commercial vans called SEVEL. It discusses the purpose, management structure and decision making processes as well as the performance over time. The case also presents the same type of information regarding the new joint venture SEVELNORD due to start operations in 1994. Students are thus abloe to draw some lessons from the first joint venture and speculate about the possible threats and opportunites affecting the second joint venture. This discussion offers a good background for further decisions concerning SEVELNORD. Note: It is also possible to use only the (A) and (C) cases, skipping the negotiation exercise.
Industry:
Size:
FRF5 billion
Other setting(s):
1991

About

Abstract

This is the first of a four-case series (IMD-3-0644 to IMD-3-0647). The SEVELNORD case series present the evolution of the relationship between two major European car manufacturers, Fiat and Peugeot, in their attempt to enter the growing market segment of the ''monospace'' (passenger minivans) in the early 1990s. The first case (A) describes a joint venture set up between Fiat and Peugeot in 1978 to manufacture commercial vans called SEVEL. It discusses the purpose, management structure and decision making processes as well as the performance over time. The case also presents the same type of information regarding the new joint venture SEVELNORD due to start operations in 1994. Students are thus abloe to draw some lessons from the first joint venture and speculate about the possible threats and opportunites affecting the second joint venture. This discussion offers a good background for further decisions concerning SEVELNORD. Note: It is also possible to use only the (A) and (C) cases, skipping the negotiation exercise.

Settings

Industry:
Size:
FRF5 billion
Other setting(s):
1991

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