In 1988, Volkswagen (VW) has strengthened its North American operations in Puebla, Mexico, after the closure of its plant in Pennsylvania. Volkswagen de Mexico has been in operation since 1960, but produced almost exclusively for the Mexican market. At the end of 1980, VW began restructuring the Mexican plant to supply the United States and Canada (which was imported from Germany), and to maintain its dominance in the Mexican market. The North American Free Trade Agreement put additional pressure on VW to start in the North America. The case traces the history of VW in the U.S. and Mexico, and the company's strategy in the context of the Mexican government regulations, free trade, and a weak presence in the U.S. market. Ends in August 1992, after the VW only solve unexpected and bitter month labor dispute that delayed the introduction of new cars in the United States. Rewritten version of the previous case. "Hide
by Helen Shapiro, Gordon Hanson Source: Harvard Business School 23 pages. Publication date: April 11, 1994. Prod. #: 794104-PDF-ENG
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