Lecture 5 Automobile Industry

Free of inuence from detroit fall 2012 jim love adms

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Unformatted text preview: Cost leadership forces McGregor to reduce costs and source local parts –  Limits number of models offered to get higher volumes for parts and materials –  “Any colour you want as long as it’s black” –  Surpassed by General Motors when the public wants more variety Fall 2012 Jim Love ADMS 1010 14 Imperial Preference •  Laurier’s answer to tariff wars •  Resurrected the concept which had been in place from 1846 to 1897 •  Patrio>c fervour of Queen Victoria’s Golden Jubilee •  Canada benefits from proximity to US AND access to Empire as an advantage Fall 2012 Jim Love ADMS 1010 15 Success •  1920’s – 80% of Canadian auto export went to “Imperial Markets” •  Sales in southern markets diversifies produc>on – in our winter when sales slow we product for southern climates •  Export gives Canada a market scale that it wouldn’t have otherwise had •  Opened plants in Australia, India, Malaya and South Africa •  Free of influence from Detroit Fall 2012 Jim Love ADMS 1010 16 War – what is it good for? •  •  •  •  Full employment in First World War Drives demand for autos End...
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This note was uploaded on 01/26/2014 for the course LAPS ADMS 1010 taught by Professor D.jurkowski during the Winter '10 term at York University.

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