Title: Austin Rover: the joint venture with Honda

Authors: Mark Snowdon

Addresses: Former Managing Director, Austin Rover Group Ltd, UK; Booz, Allen & Hamilton, Inc., Paris

Abstract: Japan prepared itself well for competition in key industrial sectors, including the motor industry. In the environment of rapid change which this industry now faces, joint ventures can be a valuable measure. Austin Rover considered the strategic implications carefully before selecting Honda as a possible partner. The venture has prospered because both companies were prepared to adopt principles designed to maintain a stable balanced relationship and each has worked to try to put them into practice. The benefits from the venture are now substantial. Simultaneously Austin Rover has built its independent competitive strengths. This has been vital to the funding of the joint venture. The double strategy of working with Japan and building strength to compete with Japan is a crucial one for the next phase of international competition.

Keywords: Sumo; technology assimilation; joint ventures; analysis; principles; strength; atsui; Austin Rover; Honda; Japan; automobile industry; international competition; automotive ventures.

DOI: 10.1504/IJTM.1987.026128

International Journal of Technology Management, 1987 Vol.2 No.1, pp.67 - 73

Published online: 27 May 2009 *

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