Allison Transmission Division $ 2 billion division of General Motors (GM) with a very specialized product: heavy automatic transmissions for commercial vehicles. Although the division is part of GM, over 90% of production goes to foreign customers. Presents a familiar challenge for many firms globalization: a pioneer and leader in the market, holding more than 60% market share in North America, but less than 10% outside of North America. The presence of the leading original equipment manufacturers in Europe, which are the key clients for Allison and large potential market in Europe will provide strategic opportunities, but the cultural and institutional differences are a huge problem. Technological differences in Europe to increase the challenge and uncertainty of new hybrid technology that is emerging in Europe complicates the decision. Also represented the company attempts in Europe for ten years, which has led to the trigger question -. Decision between the joint venture and wholly-owned unit of Austria in Hungary "Hide
by Charles Dhanaraj Source: Richard Ivey School of Business Foundation 21 pages. Publication Date: August 26, 2004. Prod. #: 904M45-PDF-ENG
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