International joint ventures and the U.S. auto industry

Document Type

Article

Department or Administrative Unit

Economics

Publication Date

Fall 1986

Abstract

In 1983 General Motors Inc. and Toyota Inc. formed a joint venture, the New United Motor Manufacturing Inc., to assemble autos in the United States. For Toyota, the venture was a first attempt to locate production in America. General Motors viewed the venture as a means of learning how to produce low-cost, high quality, small vehicles. Facing an onslaught of anti-union Japanese firms, the United Auto Workers had to demonstrate that unions would not be an impediment to Japanese production in the United States. By 1986 the venture was termed a success. This paper considers the welfare effects of international joint ventures among competing manufacturers, as applied to the U.S. auto industry.

Comments

This article was originally published in The International Trade Journal. The full-text article from the publisher can be found here.

Due to copyright restrictions, this article is not available for free download from ScholarWorks @ CWU.

Journal

The International Trade Journal

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