. 1
PORT NOS. DOT-TSC-NHTSA-78-21 , 1 HS-803 542,11 i 18.5
. A34 no MULTINATIONAL ACTIVITIES OF MAJOR UO T - U.S. AUTOMOTIVE PRODUCERS T8C- Volume II — Data on Foreign Facilities and Operations NHTSA- 78-21 Robert C. Ronstadt William Casey
J . P . Jeannet John Marth insen Robert Whorf
Robert C. Ronstadt Associates, Inc. 46 Glen Street Dover MA 02030
. of TR..
SEPTEMBER 1978 Dept, FINAL REPORT of Transportation
DOCUMENT IS AVAILABLE TO THE U.S. PUBLIC THROUGH THE NATIONAL TECHNICAL INFORMATION SERVICE. SPRINGFIELD VIRGINIA 22161
Prepared for
U.S. DEPARTMENT OF TRANSPORTATION NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION Office of Research and Development Washington DC 20590 .
NOTICE
This document is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The United States Govern- ment assumes no liability for its contents or use thereof
NOTICE
The United States Government does not endorse pro- ducts or manufacturers. Trade or manufacturers' names appear herein solely because they are con- sidered essential to the object of this report. 1 . Report Nc. 2. Government Accession No 3. Recipient's Cotolog No HS-803 542,11
4 5. Report Dote M^TINATIONAL ACTIVITIES OF MAJOR September 1978 AUTOMOTIVE PRODUCERS U.S. 6 Performing Orgoni zotion Code Volume II — Data on Foreign Facilities and Operations
8. Performing Orgoni zohon Report No.
7. Au-ho s £0 b ert Ronstadt, William Casey, DOT-TSC-NHTSA-78-21, II J.P. Jeannet, John Marthinsen, and Robert Whorf 9. Performing Orgomzotion Nome and Address 10. Work Unit No (TRAIS) HS828/R9 4 01 Robert C. Ronstadt Associates, Inc.* 46 Glen Street 11 Controct or Gron* No Dover MA 02030 DOT-TSC-1387-2 13. Type of Report ond Period Covered 12 Sponsoring Agency Nome and Address Final Report U.S. Department of Transportation July 1977-April 1978 National Highway Traffic Safety Administration
Office of Research and Development 14 Sponsoring Agency Code Washington DC 20590
15 Suppiementory Notes U.S. Department of Transportation Research and Special Programs Administration
“Under contract to: „ . . • . Transportation Systemsc Centern Cambridge MA 02142
I 16. Abstroc*
The multinational activities of General Motors, Ford, Chrysler, and American Motors are documented and analyzed. The study consists of this and four other volumes. Volume I is a summary of the four main volumes. In Volume III, the research, development, and engineering activities abroad are analyzed. Volume IV provides a preliminary assessment of the technology transfers within each U.S. multinational producer. Volume V examines the diffusion of production and sales operations abroad; the timing and location of these investments are shown consistent with the Product Life Cycle Theory of International Trade and Investment.
D|ept. of TransportatiiDn -
DEC 13 1978
i
Library
17. K Words 18. Distribution Statement Multinationaley Operations Research And Development DOCUMENT IS AVAILABLE TO THE U.S. PUBLIC Technology Transfer THROUGH THE NATIONAL TECHNICAL INFORMATION SERVICE, SPRINGFIELD, Production And Sales Abroad VIRGINIA 22161
19. Security Ciossif. (of this report) 20. Security Ciossif. (of this page) 21* No. of P ages 22. Pr
Unclassified Unclassified 236
(8-72) Form DOT F 1700.7 Reproduction of completed poge authorized
FOREWORD
The objective of Volume II is to present data gathered from several sources, public and private, about the mulitnational activities of the four major U.S. automotive producers. No attempt is made to interpret or analyze the data in this report.
However, Volumes III, IV, and V provide evaluations of several aspects of multinational activity of the U.S. automotive producers. Volume III focuses on research, development and engineering activities abroad. Volume IV provides a preliminary analysis of the international patterns of technological innovation and transfer. Volume V analyzes the diffusion of pro- duction and sales operations abroad.
The topics covered in Volumes III, IV, and V indicates the kinds of data collected for volume II. First, a considerable amount of data are presented on the worldwide research, development, and engineering activities of the major U.S. producers. Much of this data is either unavailable or not available readily from other public sources. Second, data are provided on the location and extent of production operations abroad as of 1976/1977. Third, similar data are provided for sales and marketing activities abroad. Again, comprehensive data on these topics were not available readily nor presented in a single source. Fourth, Part Two of Volume II provides data on production and sales abroad that are aggregated for General Motors, Ford, and Chrysler Corporation. These data are for several variables (sales levels, employment, ownership, etc.) classified generally by either primary activity
iii (sales and manufacturing) or geographic location. They are published for the first time.
Although the data come partly from company published sources and interviews with managers of General Motors, Ford, Chrysler, and American Motors, the reader should not infer that the four U.S. producers officially endorse the data contained in this report.
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AMERICAN MOTORS CORPORATION 153 4.1 RD&E Abroad 153 4.2 Production Abroad 156 4.3 Sales and Marketing Abroad 161 PART TWO: AGGREGATED DATA ON THE MULTINATIONAL DIF- FUSION OF PRODUCTION AND SALES OPERATIONS OF THE GENERAL MOTORS CORPORATION, FORD MOTOR CORPORATION, AND CHRYSLER CORPORATION 164 Vl : PART ONE List of Exhibits Exhibit No . Company Title Page A-l GMC Estimated RD&E Expenditures Abroad 1972-1976 7 A-2 GMC Sales, Net Income, and RD&E Expenditures in 1976 8 A-3 GMC RD&E Expenditures as a Percent of Sales and Net Income in 1976 by Geographic Area. 9 A-4 GMC The Geographic Location of Research and Engineering Facilities in 1976 10 A-5 GMC Research and Engineering Facilities 11 A-6 GMC Research and Engineering Facilities - Percentage Analysis 12 A-7 GMC The Geographic Distribution of Facilities Abroad Used for Research and Engineering in 1976 13 A-8 GMC Estimated Worldwide RD&E for 1977 and their General Composition 14 A-9 GMC Estimated Research, Development and Engineering Performed Abroad by General Motors in 1976 15 A-l 0 GMC Total RD&E Abroad 16 A-ll GMC The Classification of Worldwide RD&E in 1976 by Primary Type of Activity 17 A-12 GMC Nature of RD&E Abroad 18 A-13 GMC RD&E Abroad for Alternative Power Plants . . 19 A-14 GMC Breakdown of Estimated RD&E Expenditures Abroad in 1976 20 A-15 GMC Location of RD&E Performed Abroad in 1977 Primary Purpose, Primary User, Time Horizon, and Nature 21 vii PART ONE List of Exhibits (continued) Exhibit No . Company Title Page A-16 CMC The Location of RD&E Performed Abroad in 1977 : The Form Of and Reason for the Establishment 25 A-17 GMC General Motors - Argentina S.A 29 A-18 GMC General Motors - Do Brazil S.A 30 A- 19 GMC Automotive Components - Europe Engineering 31 A-20 GMC General Motors Holden's Pty, Ltd 32 A-21 GMC General Motors Mexico 33 A- 2 2 GMC Adam Opel A . G 34 A-23 GMC General Motors South African Pty, Limited 36 A-24 GMC General Motors De Venezuela, S.A 37 A-25 GMC Vauxhall Motors Limited 38 B-l GMC Location and Purpose of Production Operations Abroad 40 B-2 GMC National Locations and Output of Principal Production Operations Abroad of Passenger Cars 1972-1976..... 45 C-l GMC Net Sales and Income Attributable to Operations Outside the United States and Canada 47 C-2 GMC Sales Abroad by Geographic Region 48 C-3 GMC Location of National Sales Head- quarters Abroad 49 C-4 GMC Administration and Sales Offices in 1976 50 viii 345691 PART ONE List of Exhibits (continued) Exhibit No. Company Title Page A- Ford Estimated RD&E Expenditures as a Percent of Sales and Income Before Income Taxes 1972-1976.*... 59 A-2 Ford Estimated RD&E Performed in United States/Canada and Abroad in 197 6.. 60 A- Ford Automotive Sales Income Before Income Taxes and Estimated RD&E Expenditures in 1976 61 A- Ford Estimated Automotive RD&E Ex- penditures as Percent of Sales and Income Before Income Taxes. ... 62 A- Ford R&D Expenditures in the United States/Canada and Abroad as Percent of Total R&D Expendi- tures, 1976 63 A- Ford Estimated R&D Expenditures for Passenger Cars in the United States/Canada and Abroad as Percent of Total R&D Expenditures for Passenger Cars, 1976 64 A-7 Ford Estimated Composition of R&D Expenditures with Potential Relevance for Passenger Cars, Performed Abroad in 197 6 65 A-8 Ford Composition of R&D Expenditures with Potential Relevance for Passenger Cars Performed in United States/Canada, 1976 66 A- Ford Estimated Time Horizon or Period of Expected Commerciali- zation of R&D in Support of Exist- ing Business with Potential Rele- vance for Passenger Cars, Performed Abroad in 197 6 67 IX PART ONE List of Exhibits (continued) Exhibit No . Company Title Page A-10 Ford Estimated Time Horizon or Period of Expected Commerciali- zation of R&D in Support of existing Business with Poten- tial Relevance for Passenger Cars, Performed in United States/ Canada in 1976 68 A- 11 Ford Location of R&D Performed Abroad in 1977: Form and Reason for Establishment 69 Location of R&D Performed A- 12 Ford Abroad in 1977: Primary Purpose, Primary Type, User, and Nature of R&D 70 A- 13 Ford Estimated R&D Employment, 1976... 71 A- 14 Ford Estimated RD&E Employment, 1976.. 72 A- 15 Ford RD&E Employment — Staff and Hourly Paid Workers, 197 6 73 B-l Ford Production Location Abroad by Major Geographical Region in 1977 76 B-2 Ford Location of Overseas Manufactur- ing and Assembly Facilities 77 B-3 Ford Dealer Assembly Locations 79 B-4 Ford Unit Car Production Abroad for Major Manufacturing Subsidiaries. 80 B-5 Ford Factory Unit Sales of Automobiles from Plants of Consolidated Subsidiaries Abroad 1972-1976.... 81 B-6 Ford Factory Unit Sales of Automobiles from Plants of Consolidated Sub- sidiaries Abroad as Percentage of Total Factory Unit Sales Abroad, 1972-1976 82 x PART ONE List of Exhibits (continued) Exhibit a e ^ - ^ No . Company Title C-l Ford Automotive and Non-Automotive Sales, 1972-1976 87 C-2 Ford North American and Overseas Automotive Sales as Percentage of Total Automotive Sales 88 C-3 Ford Sales by Geographic Area, 1975-1976 89 C-4 Ford Regional Sales as Percentage of Total Overseas Sales, 1975- 1976 90 C-5 Ford Market Shares of Retail Car and Truck Sales Worldwide 91 C-6 Ford National Sales Offices and Sales Headquarters 92 C-7 Ford European Automotive Operations, Car Summary by Country 9 3 C-8 Ford Latin American Automotive Opera- tions, Car Summary by Country.... 94 C-9 Ford Asia-Pacific Automotive Opera- tions, Car Summary By Country.... 95 C- 10 Ford Ford of Europe Sales Organization 96 C-ll Ford Ford Asia-Pacific, Inc 97 C-12 Ford Ford Motor Company of Australia, Limited 98 C-13 Ford Ford Motor Company (Japan) Ltd... xi List of Exhibits (continued) Exhibit No . Company Title Page C-14 Ford Ford Motor Company of New Zealand Limited 100 C-15 Ford Ford Motor Company Private Limited 101 C-16 Ford Ford Philippines, Inc 102 C-17 Ford Ford Lio Ho Motor Company Ltd. (Taiwan) 103 C-18 Ford Ford Motor Company (Thailand) Limited 104 C-19 Ford Ford Latin America, S.A. de C.V. . 105 C-20 Ford Ford Motor Argentina S.A 106 C-21 Ford Ford Brazil S.A 107 C-22 Ford Ford Motor Company S.A. (Mexico).. 108 C-23 Ford Ford Motor Company of South Africa (Pty) Limited 109 C-24 Ford Ford Motor do Venezuela, S.A 110 C-25 Ford Ford (Uruguay) S.A Ill C-26 Ford Ford Mid-East and Africa, Inc. ... 112 A-l Chrysler Total RD&E Expenditures and Pro- fessional RD&E Employment 118 A-2 Chrysler RD&E Expenditures and Employment as Percent of Total Sales and Total Employment 119 A-3 Chrysler Chrysler Engineering and Research Facilities 120 A- 4 Chrysler Engineering and Research Facilities as Percent of Total Facilities . . . 121 A- 5 Chrysler Location of RD&E Employees in Europe 122 xii 76 PART ONE List of Exhibits (continued) Exhibit No. Company Title Page A- Chrysler Unit Production Output of Selected Subsidiaries 123 A- Chrysler Estimated RD&E Expenditures for the U.S. and Selected Subsidiaries 124 A-8 Chrysler Chrysler' s Foreign Passenger Car RD&E Facilities 125 B-l Chrysler Location and Purpose of Production Operations Abroad. 130 B-2 Chrysler Common Market Registrations of Vehicles Produced by Chrysler in France and Great Britain 133 B-3 Chrysler Chrysler 's International Facilities in Each Country as Percent of Total Opera- tions 134 B-4 Chrysler Manufacturing Facilities and Car, Truck, and Coach Assembly Facilities 135 B-5 Chrysler Manufacturing Facilities by Country .... 136 B-6 Chrysler Manufacturing and Assembly Facilities by Country, Europe 137 B-7 Chrysler Production by Country, Europe 138 B-8 Chrysler Manufacturing and Assembly Facilities by Country, Latin America 139 B-9 Chrysler Production by Country, Latin America. . . . 140 B-10 Chrysler Manufacturing and Assembly Facilities by Country, Far East and Africa. 141 B-l 1 Chrysler Production by Country, Far East and Africa 142 C-l Chrysler Unit Sales by Geographic Location 146 xm 2 List of Exhibits (continued) Exhibit No . Company Title Page C-2 Chrysler Unit Sales Abroad by Geographic Location and Percent of Total Unit Sales Abroad 147 C-3 Chrysler Unit Sales by Major Foreign Country and Percent of Total Unit Sales Abroad 148 C-4 Chrysler Country Unit Sales as Percent Of Regional Unit Sales 149 C-5 Chrysler Location and Ownership of Sales Subsidiaries Abroad 150 C-6 Chrysler Chrysler' s Unit Sales by Country 152 A-l AMC The Location and Selected Vari- ables of RD&E Performed Abroad in 1977. 154 A- AMC Types of RD&E Projects Performed Abroad 155 B-l AMC Location and Type of Manufacturing Activities Abroad 157 C-l AMC Location and Purpose of Sales/ Marketing Operations Abroad in 1977 162 xiv PART TWO List of Exhibits Exhibit Title Page 1 Total Subsidiaries by Principal Activity at Entry and in 1976 167 2 Year of Entry vs. Activity at Entry 168 3 Subsidiaries Still Alive in 1960, 1970, 1976 170 4 Financial Statistics in 1976 176 5 Finance Category of Subsidiary by Country of Incorporation 177 6 Total Subsidiaries by Principal Activity and Number of Employees in 1976 198 7 Total Subsidiaries by Principal Activity and Percentage of Ownership at Entry and in 197 6 199 8 Latest Ownership of Subsidiary by Country of Incorporation 200 9 Total Subsidiaries by Principal Markets in 1976 207 10 Total Subsidiaries by Geographic Location and Principal Markets in 197 6 208 11 Total Subsidiaries by Geographic Location and Principal Customers of Sales in 1976 ^ 214 12 Total Subsidiaries by Principal Activity and Sales to Parents in 1976 220 xv/xvi , PART ONE DATA FOR EACH MAJOR U.S. AUTOMOTIVE PRODUCER ON ITS RESEARCH, DEVELOPMENT, ENGINEERING (RD&E ) PRODUCTION AND SALES OPERATIONS AND FACILITIES ABROAD GENERAL MOTORS CORPORATION, FORD MOTOR COMPANY, CHRYSLER CORPORATION AND AMERICAN MOTORS CORPORATION 1 SUMMARY Data are provided from public and private sources on three aspects of multinational involvement for General Motors Corporation, Ford Motor Company, Chrysler Corporation, and American Motors Corporation. The three aspects are: 1) research, development, and engineering activities abroad; 2) production activities abroad; 3) sales activities abroad. For all three activities the data focus primarily on automotive operations related to passenger vehicles. In some instances the data include other business activities abroad besides passenger vehicles because it was not feasible or possible to separate them. 2 . , In Part One, the data emphasize the foreign operations of General Motors and Ford. The reason for this emphasis is that the foreign operations of these two multi- nationals are considerably more extensive than the foreign activities of either Chrysler Corporation or American Motors Corporation Also, the data are not completely homogeneous or comparable across the four companies. This is particularly true for the data on research and development (R&D) operations abroad because interviewees had different interpretations about what should be included as R&D activity. Where possible, we have tried to report both a narrow estimate of R&D activities and a broader definition (RD&E) that includes engineering and design activities that result, according to company sources, in new or improved products and processes. In general, however, the data on R&D abroad for General Motors favors the broader definition, (i.e. RD&E), while similar data for Ford uses the narrower interpretation that is designated simply as R&D. Unless otherwise noted, data on the foreign production and sales operations of the four U.S. producers include only consolidated, majority-owned affiliates. Con- sequently, minority-owned subsidiaries with manufacturing or assembly operations are excluded as are non-consolidated independent foreign dealerships from the sales data. 3 Also, unless otherwise noted, the terms "abroad, foreign, or overseas" refer to operations outside the United States and Canada. This interpretation should not be construed as any slight to our Canadian friends on our part, but simply the way the U.S. automo- tive producers consolidate data for North American opera- tions . In Part Two, the data come from the databank of the Harvard Business School's Multinational Enterprise Project. Special programs were written to access the data for General Motors, Ford, and Chrysler Corporation and to foremat the data for variables related to principal activity, location, size, ownership, markets, etc. AMC is omitted since its multinational diffusion is considerably limited, especially relative to the other three U.S. automotive producers. In every exhibit, the data represent the number of foreign subsidiaries for various variables. For example. Exhibit 1 of Part Two shows the number of foreign subsidiaries "alive" (still operating) in 1976 for several different activities (manufacturing, sales, etc.) The term "latest" refers to 1976. The term "at entry" refers to when subsidiaries joined their respective multinational systems. The term "existed" refers to when subsidiaries left the multinational system. 4 . The term "other" refers generally to non- manufacturing and non-sales subsidiaries that are essentially financial subsidiaries or subsidiaries established for parts distribution and warehousing. The term "unknown" refers mainly to extremely small sales subsidiaries with sales of less than $1 million, according to the Harvard Project's data coordinator. Finally, please note that subsidiaries under the R&D category register zero in all exhibits of Part Two. The zero result means no subsidiary has been created or acquired abroad whose sole or primary purpose is to peform research and development. This conforms with our findings discussed in the Report on the Evaluation of R&D Abroad (Report #2) Separate subsidiaries have not been formed by the major U.S. automotive producer, though U.S. multi- nationals in other industries have created them, for R&D purposes. However, other data from our research and the HBS databank show R&D has been performed abroad within (and secondary to) subsidiaries established primarily for manufacturing purposes. 5 . . 1. GENERAL MOTORS CORPORATION 1.1 RESEARCH, DEVELOPMENT, AND ENGINEERING ABROAD By 1977, General Motors had eleven ongoing RD&E operations in nine countries besides the United States. Data are provided in Exhibits A-l through A-16 which identify the approximate magnitude, composition, location, purpose and nature of RD&E performed abroad by General Motors by the end of 1977. Also, data are included on several other variables related to R&D operations abroad Exhibits A-17 through A-25 present organizational charts of the principal foreign subsidiaries with RD&E capability 6 : . Exhibit A-l General Motors Corporation Estimated R D&E Expenditures Abroad 1972-1976 Total Estimated $ R D&E % R D&E Millions $ Performed Abroad Performed Abroad 1976 $1,257 $276 22% 1975 1,114 234 21% 1974 1,125 236 21% 1973 1,018 204 20% 1972 880 110 12% Source Total figures are from lOK's. Other figures based on private interviews with company officials 7 ) Exhibit A ~ 2 General Motors Corporation Sales, Net Income, & R D&E Expenditures in 1976 (In millions of dollars Total U. S. Canada Other Sales* 47,181 39,785 5263 7495 Net Income 2,903 2,380 174 348 R D&E 1,257 968 13 276 *Includes intercompany sales of $5362. Source: Private interviews with company officials and consultant's calculations. 8 . Exhibit A-3 General Motors Corporation R D&E Expenditures as a Percentage of Sales and Net Income In 1976 Classified by Geographic Area R D&E As a Per Cent of Sales Total U. S Canada Other Abroad % R D&E 2.7 2.4 insignificant 3.7 R D&E As a Per Cent of Net Income Total U. S Canada Other Abroad % R D&E 43 41 7. 79 Source: Consultant's calculations. 9 4 Exhibit A- General Motors Corporation The Geographic Location of Research and Engineering Facilities in 1976 In thousands of square feet Worldwide Research & Engineering 18,646 100% Facilities . U . S -Based Research & Engineering 14,306 77% Facilities Foreign -Based Research* and Engineering 4,340 23% Facilities *effectively none. Source: 1976 10K 10 : , Exhibit A- 5 General Motors Corporation Research and Engineering Facilities (In thousands of Square Feet) Worldwide U. S. Canada Other F 1976 18,646 14,306 204 4136 1975 18,289 14,266 204 3819 1974 17,818 13,903 167 3748 1973 17,391 13,607 216 3568 Source 10K' s General Motors Item 3 (Properties.) 11 : Exhibit A-6 General Motors Corporation Research and Engineering Facilities Percentage Analysis Worldwide U. S. Canada Other Foreign 1976 100% 77% 1% 22% 1975 100% 78% 1% 21% 1974 100% 78% 1% 21% 1973 100% 78.3% 1.2% 20.5% Source Consultant's calculations based on data in 1973-1976 lOK's. 12 Exhibit A-7 General Motors Corporation The Geographic Distribution of Facilities Abroad U s ed for Research and Engineering in 1976 (Excludes Canada) In Thousands of Square Feet % Abroad Total "Overseas" Research and 4136 100% Engineering Facilities Estimated A) Europe 2689 65% GM Ltd B) Latin America 620 15‘ C) Australia and Far East 620 15% Holden only D) Middle East and S. Africa 207 5% S. Afr only Source: "Total" figure from G'M's 1976 10K. Area estimates from company interviews. 13 : Exhibit A-8 General Motors Corporation Estimated Worldwide R D&E Expenditures for 1977 and their General Composition o Millions $ "o 1977 Total $2000 100 Fundamental Research 75 4 Applied Research and Development and Engineering for fuel economy, 1750 87 emission control, safety Other Development Engineering and Design 175 9 Source Company interviews. 9 Exhibit A- General Motors Corporation Estimated Research, Development and Engineering Performed Abroad by General Motors in 1976 millions Est. $ % Total R D&E Performed Abroad 276 100% Research Abroad* 14 5% Development Abroad 1 124 45% Engineering Abroad I Design Abroad 97 35% Environmental Activities Abroad 41 15% ^Contract out all Research work abroad in Germany. Source: Company interviews. 15 Exhibit A-10 General Motors Corporation Total R D&E Abroad Research Development* Engineering* 1 year or less 0 1 to 4 years 90% 4 to 8 years 10% * A considerable amount of development and engineering work is one year or less; however, new product work is tied to longer model cycle. Source: Company interviews. 16 : Exhibit A-ll General Motors Corporation The Classification of Worldwide R D&E Abroad in 1976 by Primary Type of Activity Primary Purpose is to Perforin Total RD&E Indigenous Multinational Worldwide Technology Work(l) Technology Work (2) Millions $ 1257 1257 0 - % 100 100 0 R D&E Abroad Millions $ 276 276 0 % 100 100 0 (1) Indigenous technology work is R D&E work to develop new or improved products and processes expressly for a national or local market. (2) Multinational technology work is R D&E work to develop new or improved products and processes expressly for near simultaneous manufacture or utilization in two or more major world markets of a national enterprise. Source Company interviews. : Exhibit A-12 General Motors Corporation Nature of GM's RD&E Abroad Of Total RD&E Performed Abroad, Does GM perform RD&E on: (yes or no) (1) Downsizing for fuel economy: yes (2) Combustion processes and alternative fuels: yes (3) Conventional Engine Studies: yes (4) Energy Conservation Plant and Process Engineering: yes (5) Alternate Engine Studies: Mostly all U.S. Source Company interviews. . . . Exhibit A-13 General Motors Corporation R D&E Abroad for Alternate Power Plants Any R D&E Performed Alternate Power Plants GM is working on Abroad by GM? (1) Jet-ignition stratified charge All U.S. but not really engine significantly different technology to be called "alternate" (2) Direct injection stratified charge All U.S. but not really (DISC) engine. significantly different technology to be called "alternate" (3) Gas turbine engine for passenger All U.S. - none abroad. cars (4) Diesel engines for passenger cars. Yes: Germany (in-house) and Japan (Isuzu) (5) Battery-Powered Electric Vehicles Yes: Taiwan - tech exchange program with Taiwanese government. (6) Alcohol-fuel engine. Yes: Brazil (in-house). (7) Rotary engine (discontinued but None abroad. monitoring) Source: Company interviews. 19 . , Exhibit A-14 General Motors Corporation Estimated R D&E Expenditures Abroad in 1976 R D&E Abroad for: As % of 1976 Total R D&E Abroad A) Emission Control B) Safety 85% C) Fuel Economy D) Alternate Power Plants E) Other (explain) 15% Appearance Styling, etc. * Interviewees found it difficult to estimate amounts for items A - D because they are interrelated and hard to disaggregate Source: Company interviews. 20 i i 1l 1 1 i p 3 £ AC £ AC 2 P P P P CD 0 3 0 33 -P £ -P S c 1 Co 1 Co i i ! 3 -P —l 3 P 3 -P 3 1 P i—1 tH 0 0 M 1 AC 0 < -P 44 0 1 E-i P 0 i— cr Si 0 — 04 2 • 1 • 0 i— p & (13 § p 1 r*-l 04 U V S3 CD (13 (13 3 10 (13 3 3 3 3 P P CD 10 10 10 P CD CD 3 3 3 CD CD 3 >i >1 (D id O Oi >1 >4 CD 3 co e -p i— c 3 3 1 i— 3 3 D •H (13 P CD -H H CD 43 P P CD •P ’H 0) 3 (13 3 to £ 0 3 3 3 3 £ £4 CD 0 10 3 3 P 0 CD 0 3 3 3 P 3 — *H Si CO Q-i 44 3 •H Si CO 0) — — — i i i 3 1 r4 1 1 0 3 3 3 3 04 P 3 3 P> 3 Pi 3 P> 3 P P 3 0 CD 0 CD 0 3 0 3 3 3 £ P •P AC •P AC •P AC •P AC 0 04 •P CD P> P P> P P) P P P -H P 3 3 3 3 3 3 3 3 3 4-1 Ip 04 D 2 2 2 2 2 2 2 2 3 p P 3 0 £ 04 *p P P p 1 3 0 in 0 04 P 0 3 CD •p i— u 3 rJ 3 3 3 3 3 i X P o < 3 • • CD 3 p p CD AC 3 3 p r~ O 3 3 04 > P O O p> 0 [-" 0 3 •H 0 0 0 pl pi *rH p> CTi— >i CD p 3 £ 5 p p Si 0 i 1 P 3 04 3 3 P CD 3 04 3 04 3 •p 2 3 0 0 Si P) 3 3 3 0 0 s: 04 >i-P P -P H 3 £ 3 >i —>1 4 1 X i— H •P P rH P> Co 3 AC 3 •P rH 4-> 1 p w 3 P 3 3 04 CD 3 g P P> CO 3 04 G 04 fd r_ P t 04 04 •h £ P 0 0 I 3 •H rd •H 3 CD 3 rd T3 3 0 3 3 3 rd T3 rd X interviews. 3 0 2 < CO Co l 1 2 < 2 < CD S-i O ,0 < XS 3 £ P O 44 P Company P 3 *P a> 3 3 0 > 3 i— 04 •P •P •H 3 P P p 0 3 w 3 CJ 3 •H 3 N ca O < CD N •H 3 Q 0 CO 3 X 3 OC P w P P 3 3 ^3 < P 2 > Source: 44 <^l Q O 2 2 2 2 3 OC a O O O 3 £ o 3 44 (M m •H 2 0 =«= =4= =4= =4= p 3 u o p 21 i i —I 1 11 1 1 1l 1 1 P 1— G Q3 0 03 G !5 0 0 g G W 1— P G G 05 O CD Q G O 0) >i [" Q3 -G n r— p >1-P O CD Ol o G G i— 4-3 U3 G P —O o 1 -P G 'O' 4H i 0) 03 0 • g G G -H G G 3 rH CD G CD -P p a; N CD -P G P G •G >i Abroad 2 G O 03 -P 2S 2S CD G 03 G G O C 03 03 CD O P • >-*. 03 G 03 > 03 0) G G 03 G P O CG O G >i 1 3 O G O O -P 22 —t 1 11 i 1 i 1 1 1 a 5 >1 — • 1 1 W G X CO ca *P rd co X X CD § CD X 0 G G •p X X x 0 2; CO O —- 23 2 X G X G 2 B p rd rd p P 0 td B r~ 2 CD CD C P i r-» -P PJ —1 *P CD <7\ re! 1 X 0 X O i— 2 +J o >1 CO P 2 U -P 2 g 23 0 23 X O •H G X 0 X CD '— 2 CO • P CD 23 cpxs x CD 2 G CO CO 0 0 > 0 O •H CO X B 0 P N —CD 0 X X XI •H X 1 l p P rd < p P >1 rd 0 0 0 p X CD CP CO 23 K s 0 •P >i CP rd (1) P 2 e 1) X p 0 P CO CD p 6 CO rd -n 2 B 0 •H 0 CD rd 0 G rd x Eh s >i 2 x -P c/o P 2 cp c 0 W >i . . l3 i — •H P i— i— — 23 x Q 2 P 2 2 2 0) 2 cp 6 as G X C X G X 2 p •P CO 0 CD 0 2 O 2 G 0 4-1 P D *P X •P X •P X H a 0 CP X P X P X P x p 2 2 2 2 2 2 c 0 CO 2 B 2 B 2 B o u o o ' 2 X p CO X X X X in 0 H G c C G r— X P 2 2 2 2 1 o 2 B B B B < g -P as CP CP CP CP o CO CO 0 0 0 o 1— — — — 1 — X 03 0 2 l 1 1 1 1 1 1 •H 2 P CP 2 2 2 C 2 2 G X! P res p U > > 0 > > 0 •H 2 X 2 0 2 2 -P 2 2 X x G U CP P a a x a a x X 2 CP c CP CP w O 23 Cp 0 X 2 2 X 2 2 Q) P >1 X o 2 o 2 23 -P rd X X 2 2 < 2 2 < O B C CP 23 O 23 O 2 •H •P 2 0 0 23 0 0 23 1— p 2 23 P P G P P G 2 CP 2 < CP CP 2 CP CP 2 (X 23 c res c 0 "0 •H X 2 interivews. -P X P res B •P o G 0 - X 0 O >i 23 2 2 XI •P P> • Cd p 23 P> -P o G 0 P CD rd > • >i •P X 0 X O -P < e G X o X Eh 0 P> -p 2 g 23 XI O 2 G X CD B 23 2 Company < U 2 2 X p 2 i— 03 23 G B CP 2 2 X X 23 C H 2 P O i— O *P 2 G 2 P 2 2 G X G 2 Q IP O B 2 X X X 0 i— 0) Oh 2 2 2 2 X td e g S 23 2 2 g 2 2 G (d 4H U U C CP 2 U > X H 2 0 Source: r" CO CTi =b= =tt =#= 23 —- 1 1 i11 I 1 i G 3 -p •P 3 p G 0 P -H a) ft 3 3 p 3 3 3 3 >ift ft V 1 3 1 3 tj> 2 3 G G [" U 0 -P r~ 33 •P -P a> C -P P 3 3 a 3 -P • ft 3 33 X 3 £ G P -p G 3 > •H 0 C 3 0 4-1 N S i— 2! *H i— ft 0 3 3 P w 3 P O 0 O -P 3 P 2 Q >i 3: P 3 X! i— 0 < 3 ft P B Sft 3 e 3 P a E 33 •H M-l 3 3 3 3 0) Eh 0 2 ft 3 C/3 6 P O 44 -P -P P 3 3 3 0) ft ft *— ft P P P 3i 3 3 3 3 w 3 g g 3 D i £ Q i— — •H >i 3 3 ft ft P G G G 3 0 0 O c 4H E H •P U o 0 H -P -P ' •H p 3 3 ft td ft 2 2 15 3 u • P -H G 3 i o ft 0 5 24 1 i i 13 CD >1 Cn -P -p G P •H i >i.C -P id 1 i i > CD rH -P P pi • P X3 -H G co td CD CD CD -P 0 13 g s pj m-i > > > u \ CD G CD O G g 0 0 0 < 13 £5 0 co 13 id 0 12 13 12 c •H •P CO CD 4-4 -H pj id id id W (0 (d 4-i id 13 G -P G <4! 4-1 CX C G XCD co co co Q 13 g id x5 id id Reason G Form Q -P o 05 o CO 1977: 13 CD in >1 p pj •H •p G > D1 •p O 13 13 13 13 4-1 Abroad < CD CD CD CD u PJ PJ PJ PJ < P rd id rd rd • 0 CD CD CD CD CO H P P p p 5 <45 13 U CD u CJ CD a CD 4-1 > 05 id P Performed CD 0) P p) U c •H >i c rd RD&E 4-1 ex o g o of c u o id rd • • pj >i G •— CD rd 4-i •P CD 0 4-1 O -P i— 0 G P Location 0 > G p o N G Pi -P CD N •H CD O 4-1 £d rd X G C/3 13 O P P CD CD G < < 02 a > id H S s The s a CD <4> o o o u g Q id r— (N co S 05 =*t= =8= =8= =8= 25 1 i I 1 i l d 0) d G G *H G S G G P P tn p CU G td p O P G *rH d G •G • CU 0 G •H G > CD i— CO G d G •rH G c Qj G p • p 0 G P 0 •H 0 G cu G p G G d P o \ G 1— P P O G G Or cu O r~ < d P (U CO G •H O P P G r-~ G d C > G G p s CO G P Cl w fd cu *H CD < g G • G G i— G G d P >1p tn P G Q d •rH g G P Q-i '— p G CO G G cu p cu G o o fd G o G >i o G W O -P •H o H *H fd G CO a) -P > •H P *g £ G i— 26 1 1 1 13 X) 1— X 1 x < 13 p u u H d u CD u < < >1 p H X d 0) 13 us d d C CD Q CD CD CD -P P g O O CP U 0 CD CJ i— CD Vi • • 0) 13 o c g p fC 0 d 13 0 d d D~1 Cn Vi 0 0 X d •H •P -P •H X X > X d rd -P u O X CD d 13 0 0 O o d 05 i-5 X < d g x X d P 05 •H i— CD 13 W p 0) CD C iH X d ^ CP O O D d E-> d Q X S S g S X CD CP O U d e> d g 13 d d x r-~ oo 27 "i1 i 1 1 i d 0 p -H Ui d -P >1 tr d 44 cu cu *H M p sd > 0 0 Cn •P \ d id cl, c 4-1 d 0 0 g •H i o sd sd P 0 p >i cn . Cd -P g 2d cn cn cu d & CU g (0 fd O cn P Proc with 23< l d 0 0 >i44 cn 4-1 44 -H id p •H 5 ‘P cu > P P p d d 44 0 44 W O 44 O 43 < fd (d cn cn Q •P 44 0 0 w u d >4 >H ft 43 o id id Q cn td 0 44 cn £ *H 0 od *H i— 0 p o d 23 fd d W 44 o < td *P p 0 43 (d a 3d cu 4-> Q 0 g X (d o P o w cu 0 Pd U u u i— 0 CO cn d CL) id g g o fd o o p d d d sd Cn Cn 0 0 sd >1 id id CO H 0 44 •H *p 44 *P *P w fd 44 > o fd "P d d 0 U 44 0 0 0 O 44 T3 44 o PI < •P 0 P o 0 id 44 sd i— 2d d w P -P p 0 EH id g Q fd Q S -P a CJ P o • CJ • i O £ —1 fd m-j rH U i— 2 o =4= =tt= 28 < S. ARGENTINA MOTORS GENERAL 29 SOURCE SOURCE FOREIGN U.S. - - (ISPI (ISP) PERSONNEL PERSONNEL SERVICE SERVICE INTERNATIONAL INTERNATIONAL A. S. BRASIL DO MOTORS GENERAL 30 1,1977 JULY EUROPE - COMPONENTS ENGINEERING SOURCE SOURCE AUTOMOTIVE FOREIGN U.S. - - (ISP) (ISP) PERSONNEL PERSONNEL SERVICE SERVICE INTERNATIONAL (INTERNATIONAL OD 31 — a \— > i Q_ CO Z I-z QLU LU _l cc< 0 CL 1 QLU O CO oc DC IU o— 111z 1 o z o UJ < DC HIz OLU 32 a SUPERV. TEST CONTROL PHYSICAL MAT. 33 o’ < LUI Q_o 34 JUIY d < LU oQ_ < O < SOURCE SOURCE FOREIGN US. - - (ISP) (ISP) l L SONNE H HStJNUS PE I'L CL 1 lUNAl IINTEBNATIONAI E/INAT f CQ|w< 35 LIMITED (PTY.) AFRICAN SOUTH MOTORS GENERAL SOURCE SOURCE FOREIGN US - - (ISPI IISPI PERSONNEL PERSONNEL SERVICE SERVICE INTERNATIONAL (international on 36 S.A. VENEZUELA. DE MOTORS GENERAL SOURCE SOURCE EOREION J U - - (ISP) IW MHSONNEL PERSONNEL AVICI SERVICE If RHATIONAL HHURNATlONAl |INK oo 37 38 1.2 PRODUCTION ABROAD By 1977, General Motors had 41 production facilities located in twenty countries for passenger vehicles that were wholly or majority-owned outside the United States. Data are provided in Exhibit B-l which identify the location, name, and principal purpose of production operations established abroad by General Motors by the end of 1977. In addition, minority-owned production activities are also conducted in Iran, Kenya, and Japan (Isuzu). Exhibit B-2 attempts to place these numerous production operations in perspective. It shows that the vast majority of GM's production abroad for passenger vehicles is located in four countries. And the German subsidiary Adam Opel A.G. alone is larger than the others combined. 39 Exhibit B-l General Motors Corporation Location and Purpose of Production Operations Abroad Name and Location of Production Activities Purpose Argentina GM Argentina S.A. 1. Buenos Aires Assembly 2 . San Martin Manufacturing Australia GM - Holden's Lmt. 3. Adelaide Manufacturing 4. Brisbane Assembly 5. Dandenong Manufacturing 6. Elizabeth Manufacturing 7. Melbourne Manufacturing 8. Perth Assembly 9 . Sydney Assembly Belgium GM Continental 10. Antwerp Assembly (2 plants) Brazil GM do Brasil S.A. 11. Sao Paulo Manufacturing 12. San Jose Assembly 40 Exhibit B-l (continued) General Motors Corporation Name and Location of Production Activities Purpose Chile GM Chile S.A. 13. Arica Assembly England GM Limited 14 . Dunstable Manufacturing 15. Liverpool Manufacturing 16. Southampton Manufacturing Vauxhall Motors Limited 19. Dunstable Manufacturing 20. Ellesmere Port Manufacturing 21. Luton, Bedfordshire Manufacturing France GM France 22. Gennesvilliers Manufacturing GM Strasbourg 23. Strasbourg Manufacturing 41 . Exhibit B-l (continued) General Motors Corporation Name and Location of Production Activities Purpose West Germany Adam Ope 1 A . G 24. Bochum Manufacturing 25. Kaiserslauter Manufacturing 26. Russelsheim au Main Manufacturing GM Deutschland Gmbh 27. West Berlin Manufacturing Ireland GM Ireland Limited 28. Dublin Assembly only Malaysia GM Malaysia Sendirian 29. Berhad Manufacturing Mexico GM de Mexico S.A. de C.U. 30. Mexico D.F. Manufacturing 31. Toluca Manufacturing 42 Exhibit B-l (continued) General Motors Corporation Name and Location of Production Activities Purpose New Zealand GM New Zealand Lmt. 32. Wellington Assembly only Philippines GM Philippines, Inc. 33. Manila Assembly only GM Philippines Manufacturing Corp. 34. Manila Manufacturing Portugal GM de Portugal, Limitada 35. Azambuja Assembly only South Africa GM South African Pty. Ltd. 36. Port Elizabeth Manufacturing 43 Exhibit B-l (continued) General Motors Corporation Name and Location of Production Activities Purpose Switzerland GM Suisse S.A. 37. Bienne Assembly only Thailand Bangchan General Assembly Co., Ltd. (60% GM) 38. Bangkok Assembly only Uruguay GM Uruguaya S.A. 39. Montevideo Assembly only Venezuela GM de Venezuela, C.A. 40. Caracas Manufacturing Zaire GM Zaire S.A.R.L. 41. Kinshasa Assembly only 44 Exhibit B-2 General Motors Corporation National Locations and Output of Principal Production Operations Abroad of Passenger Cars 1972-1976 Passenger Cars Country Produced and Output Assembled Year 000s 1) Australia Gemini 1976 130 GM-Holden Holden 1975 138 Torana 1974 185 Statesman 1973 200 1972 189 2) Brazil Opala 1976 181 GM do Brasil Comodoro 1975 173 Chevette 1974 181 1973 143 1972 102 3) England Chevette 1976 198 Vauxhall Viva 1975 201 Magnum 1974 250 Vauxhall VX 1973 259 4) Germany Kadett 1976 922 Adam Opel Manta 1975 686 Ascona 1974 592 Rekord 1973 845 Commodore 1972 904 Diplomat All Other 1976 204 Sources 1975 178 Includes units manufactured 1974 162 by Isuzu for G .M. 1973 145 1972 123 45 1.3 SALES AND MARKETING ABROAD General Motors sells its passenger cars in most of the world's nations. However, these sales occur through a system of independent dealerships in many coun- tries which import the final product from GM subsidiaries in other countries. Sales attributable to operations outside the United States and Canada were nearly $7.5 billion in 1976 and represented an estimated 12% of GM's total net income. (see Exhibit C-]) . Exhibit C-2 shows a geographic breakdown of sales abroad. By 1977, General Motors had marketing and/or sales operations for passenger vehicles in 28 countries besides the United States and Canada. The data provided in Exhibit C-3 identify the location of these national sales operations established abroad by General Motors by the end of 1977. No data were available about the physical size of sales and marketing activities alone. However, Exhibit C-4 presents data for the physical space occupied by both administrative and sales offices for 1976. The percentage of foreign space for administration and sales of total space (at 20%) is equal to the percentage of foreign-to-total sales. 46 Exhibit C-l General Motors Corporation Net Sales and Income Attributable to Operations Outside of the United States and Canada Estimated Net Net Sales Abroad* Income Abroad $ millions % of Total Net Income 1976 7,495 12% 1975 7,227 6% 1974 5,969 - 1973 5,779 9 1972 4,741 8 *Before elimination of transfer- sales. Source: GM's 1976 10K. Exhibit C-2 General Motors Corporation Sales Abroad by Geographic Region In millions of $ Total Abroad* $7,495 100 Europe 5,023 67 Australia, New Zealand and East Asia 1,039 14 Latin America 1,326 18 Middle East and Africa 231 3 *Excludes Canada and after eliminating inter- area sales of $124 million. Source: GM's 1976 Form 10K. 48 Exhibit C-3 General Motors Corporation Location of National Sales Headquarters Abroad Country City Argentina Buenos Aires Australia Melbourne Austria Vienna Belgium Antwerp Brazil Sao Paulo Chile Santiago England London Finland Helsinki France Paris Germany Russeleheim Italy Rome Ireland Dublin Luxembourg Luxembourg Malaysia Singapore Mexico Mexico City New Zealand Wellington Norway Oslo Philippines Manila Portugal Lisbon Scotland Edinburgh South Africa Port Elizabeth Sweden Stockholm Switzerland Geneva Thailand Bangkok Uruguay Montevideo Venezuela Caracas Zaire Kinshasa 49 Exhibit C-4 General Motors Corporation Administration and Sales Offices in 1976 In 000s of o Square Feet o Worldwide 31,687 100 U.S. 24,303 76 Canada 1,131 4 Other Foreign 6,253 20 Source: GM's 1976 Form 10K. . . 2 . FORD MOTOR COMPANY 2.1 RESEARCH, DEVELOPMENT, AND ENGINEERING ABROAD Ford Motor Company's total worldwide expenditures for R D&E from 1972 to 1976 are shown in Exhibit A-l along with calculations of R D&E's relative intensity. An estimate of the R D&E performed abroad is shown in Exhibit A- 2 for both automotive and non-automotive operations Exhibit A- 3 shows an estimate of automotive R D&E performed abroad in 197 6. Exhibit A-4 calculates the relative intensity of automotive R D&E performed in the United States/Canada and abroad. Exhibits A-5 and A- 6 show estimates for research and development activities performed in the United States and abroad that excludes engineering and design activities. Exhibits A-7 through A-10 use this same definition of R&D to estimate the composition and time horizon of R&D per- formed abroad and in the United States (for comparative purposes) Ford's overseas operations are organized regionally. Ford of Europe, Inc., with offices at Warley, 51 near London, was created in 1967; Ford Latin America, S . A . de C.V. was formed in Mexico City in 1974; Ford Asia-Pacific, Inc., headquartered in Melbourne, Australia, was founded in 1970; and Ford Mideast and Africa, Inc., was established in 1975 with headquarters in Dearborn, Michigan. However, in only one of the four overseas organizations. Ford of Europe, is research and development performed under the narrow definition. Elsewhere, R&D is insignificant either quantitatively or qualitatively. According to one interviewee, some R&D is con- ducted in Latin America and in Australia; however, of the $7 million spent abroad by Ford on R&D in 1976, less than $100,000 was spent in Latin America and only $300,000- $400,000 in Australia. Research and development in Latin America concerns primarily the determination of what components (e.g. emission control features) can be taken off before marketing the vehicle in the particular target country in question. The same is essentially true in Australia; R&D is not conducted independently, but rather is done within established engineering groups . No research and development is conducted by Ford Mideast and Africa, Inc. which is primarily engaged in developing new manufacturing locations in the area. On the other hand. Ford's R&D efforts in Europe are important, the quality of which is reflected in Exhibits A— 11 and A-12. 52 . The subdivision of R&D facilities in the Ford organization is based on mission. Thus, three distinct facilities are located in England and Germany supporting car production, truck production, and manufacturing. All three R&D facilities were established abroad during the mid-1960's to perform R&D activities expressly for the European market. This essentially remains their function today, although to a limited extent new pro- ducts and processes are being developed by these facilities for simultaneous application in the North American market. Within the Ford organization, a Product Develop- ment Group of Europe exists which includes all of the car product engineering personnel of Europe (line as well as staff), product planning as well as design. Each of these activities is headed by a Ford of Europe Vice President who reports to the Vice President of Product Development, who is also a Vice President of the parent company. These line activities are supported by a controller's office and a personnel office. Working on the component system basis, the operation is divided between the twin Design and Engineering Centers at Dunton, Essex in England (near London), and at Cologne in Germany, plus a 630 acre proving ground near Lorair.el. a highly developed communica- tion network links all activities and there are sufficient ^ facilities to engineer cars for any territory in the world. Within these facilities in 1976, there was a total of approximately 3000 staff and about 1600 hourly paid employees "'‘Public Affairs Staff, Ford Motor Company, Brent- wood, Essex, Great Britain, Ford Product Development in Europe, 1976, p. 3. 53 ^: , All of these personnel were not involved on a day-to-day basis with research and development as narrowly defined. If production and product engineering, pro- duct testing and related technical activities are exclu- ded, then only approximately 10 per cent of those line and staff personnel cited above, were engaged strictly in R&D work. The following approximations are instructive R&D Employment*" in 1976 Total number of R&D workers 1608 Number of R&D workers in U . S . /Canada 1440 Number of R&D workers abroad 168 R&D workers for passenger cars in U.S. 1410 R&D workers for passenger cars abroad 165 Ford's Research and Engineering Center at Dunton, Essex was opened on October 12, 1968. Activities at 2 Dunton include advanced research in the fundamentals of fuels, lubricants and combustion, in physics and chemistry of materials and in the design of advanced components and structures . "'"derived from personal interviews at Ford Motor Company. See Exhibits A-13-15 for summary of R&D and RD&E employ- ment abroad. ^since the research and engineering centers at Dunton and Cologne are twin facilities, a detailed description of the latter is not deemed necessary. 3 Press Office, Ford Motor Company, Limited, Brent- wood, Great Britain, News Release October 11, 1968. 54 ^ In addition to housing facilities for styling cars and commercial vehicles, engine and transmission design, and body and electrical design engineering, the Center also contains laboratories in which wood, plastic and metal models or components are designed and performance- "* tested . Included in the Center's 357,000 square foot floor area are: 1) a design building housing 165 design and product planning staff, with interior and exterior advanced studios, showroom and fabrication workshops, and a spacious open-air viewing court - large enough to contain simulated roads and street backgrounds -- for visual assessment of future products. 2) main workshops, where laboratory facilities subject engines, bodies, suspensions, steering systems, brakes and interior trim materials to life-time durability and performance evaluations. 3) test fleet workshops, where up to 300 prototype cars and trucks are tested before release to production areas. '"Press Office, Ford Motor Company Limited, Brent- wood, Great Britain, News Release , October 11, 1968. ^Ibid. 55 ^ As of December, 1976, a variety of important research projects were under way at Ford's Dunton facility, including on-board computer control of the entire com- bustion process, investigations into structural plastic materials, electronic instrument display modules, and, for particular application to pressures in Europe (where gasoline is still over three times its price in the U.S. in "real" terms), lightweight body structures and improved aerodynamics to conserve fuel. Since ad- vanced suspension systems have also been high on the list of European market requirements, work in this field has been similarly active.'*' Although Ford's R&D managers abroad at Dunton and elsewhere do enjoy considerable decision- making autonomy, they are not totally free to determine R&D assignments or to allocate R&D resources as they see fit. There is direction from Dearborn and this is par- ticularly true of important projects. European R&D managers do have, of course, considerable latitude in operating within Dearborn directives; they may revise program specifics or modify program objectives after work has begun. ^Public Affairs Staff, Ford Motor Company, Brentwood, Essex, Great Britain, Op. Cit. , p. 4 2 derived from personal interviews at Ford Motor Company. b6 In some R&D projects, a strong interchange exists between domestic R&D personnel and overseas R&D personnel; however, in other project areas, there is no interchange or very little. This interchange takes place in a variety of ways including telephone conferences, the movement of personnel back and forth on a regular basis, the creation of special task forces and the sponsorship of technical work- shops attended by both domestic and foreign R&D personnel at which technical papers are read and discussed. Also, Ford has a well-^organized technical informa- tion exchange (between U.S. operations and overseas opera- tions) to assure that everyone who should know, does know what's going on. The company annually updates their R&D want list — the current list includes about 300 line items. Each line identifies an area/item of need including specific objectives/targets sought. Ideas and proposals for R&D pro- jects are invited, and decisions are made in the U.S. on which projects are funded. The company also compiles a manual of all internal R&D projects (worldwide) to facilitate information exchange about who's doing what. The manual includes names and addresses of all project leaders. Technical exchange work- shops (on various topics) are held four to six times per year. The R&D want lists and R&D project manuals are confiden- tial documents. 57/58 Exhibit A-l FORD MOTOR COMPANY Estimated RD&E Expenditures as Percentage of Sales and Income before Income Taxes 1972 - 1976 1 Year R D&E RD&E As R D&E As R D&E As (millions of $) % of Sales % of Income % of Net (Before Taxes) Income 1976 $ 925 3 . 2 % 53 % 94 1975 748 3.1 188 232 1974 825 3 . 5 149 252 1973 826 3.6 51 91 1972 621 3.1 37 71 automotive and non-automotive Source: Ford Motor Company's Annual Report, private interviews with company officials, and consultant's calculations. 59 . Exhibit A-2 Ford Motor Company Estimated RD&E Performed in the United States/Canada and Abroad in 1976 Total U. S . /Canada Abroad Millions $ 925 722 203 o, o 100 78 22 *Automotive and non-automotive expenditures including engineering and design. Source: Form 10K for 1976 plus interviews and consultants' estimate 60 Exhibit A-3 Ford Motor Company Automotive Sales Income before Income Taxes and Estimated RD&E Expenditures in 1976 ( in millions of $ ) Automotive Worldwide U.S. /Canada Other Abroad Total Sales 26,499 18,555 7 ,944 Income Before Income Taxes 1,472 767 705 R D&E 906 707 199 Source: Ford Motor Company's Annual Report, for automotive sales and income figures. Automotive R D&E figures are from private interviews with company officials and consultant's calculations. 61 4 Exhibit A- Ford Motor Company- Estimated Automotive RD&E Expenditures as Percentage of Sales and Income before Income Taxes R D&E As a Percent of Sales Total U. S. /Canada Other/Abroad % R D&E 3.4 3.8 2.5 R D&E As a Percent of Income Before Income Taxes Total U. S. /Canada Other/Abroad % R D&E 62% 92% 28% Source: Consultant's calculations. Exhibit A-5 Ford Motor Company R&D Expenditures in United States/Canada and Abroad as Percentages of Total R&D Expenditures, 1976 (excludes engineering activities) Expenditures Percentage (millions of $) Total R&D Expenditures (narrowly defined) 91 100 R&D Expenditures in the U. S. /Canada 84 92.3 R&D Expenditures Abroad 7 7.7 Note: Includes non-automotive Source: Private interviews with company officials and consultant's calculations. 63 6 Exhibit A- Ford Motor Company Estimated R&D Expenditures for Passenger Cars in United States/Canada and Abroad as Percentage of Total R&D Expenditures for Passenger Cars, 1976 ( excludes engineering ) Expenditures (millions of $ ) Percentage Total R&D Expenditures (narrowly defined) 89.2 100 R&D Expenditures in the U . S . /Canada 82.3 92.3 R&D Expenditures Abroad 6.9 7.7 Source: Private interviews with company officials and consultant's calculations. 64 : Exhibit A-7 Ford Motor Company Estimated Composition of R&D Expenditure with Potential Relevance for Passenger Cars, Performed Abroad, in 1976 (Excludes Engineering Activities) Expenditures (millions of $) Percentages R&D Performed Abroad 6.9 100 R&D In Support of Existing Business 6.9 100 R&D to Develop New High-Risk Business 0 0 Note: R&D in support of existing business is defined as any work related to the conventional internal com- bustion engine and/or work in areas where the organization has direct technology, production, and marketing experience. R&D to develop new high-risk business is defined as any work related to alternative engines or power sources or work in areas where the organization does not have direct technology, production, and marketing expeience. Source Private interviews with company officials. 8 Exhibit A- Ford Motor Company Composition of R&D Expenditures with Potential Relevance for Passenger Cars Performed in United States/Canada, 1976 ( excludes engineering activities ) Expenditures (millions of $) Percentage R&D Performed in U.S. /Canada 82.3 100 R&D in Support of Existing Business 70. 3 85 R&D to Develop New High- Risk Business 12 15 Source: Private interviews with company officials. 66 9 Exhibit A- Ford Motor Company Estimated Time Horizon or Period of Expected Commercializa- tion of R&D in Support of Existing Business with Potential Relevance for Passenger Cars, Performed Abroad in 1976 ( excludes engineering activities ) Expected Commercialization: % Within three years 15 Between three and six years 8 5 Beyond six years 0 Source: Private interviews with company officials. 67 Exhibit A-10 Ford Motor Company Estimated Time Horizon or Period of Expected Commercializa- tion of R&D in Support of Existing Business with Potential Relevance for Passenger Cars, Performed in United States / Canada in 1976 ( excludes engineering activities ) Expected Commercialization: % Within three years 17.0 Between three and six years 62.5 Beyond six years 20.5 Source: Consultant's calculations based on company interview data. 1 1i i 1 i 1 1 l 1 1 G d) CD £ > G X d) £ £ i— rd £ JC, £ X X X O H 0 O O X Q X £ rd rd £ 4-> & 03 X £ X X X • £ W x d) 03 • X £ 0) G CD £ X X X £ • £ E E 0 rd £ • £ rd X G X x o a, a 0 > •H E rd • £ 03 X d) 0 G > £ *r4 £ C£ i— CD G £ 03 £ X l— £ £ O X O O O - 43 0 £ •H X • X X rd (0 X 0 £ - £ O >i £ rd X 03 £ -U X 0 CD CD d) X O £ 03 £ £ -rH 03 £ O X £ CD £ X X X X £ x rd W 0 d3 o CP £ X i— O X £ rd rd X 03 S4 CD 0 X X X d) £ O E X X 44 i £ X £ —1 O'* o £ O G X £ 0 1 e X X O 0 r-~ •H £ £ £ cv u £ O CD £ i— • £ P X £ W S-l X X 0 m 4-1 0 c > X £ •H S H X 0 03 0 ** *H X 0 O CD X >1 X s X > £ £ £ X rd £ X -H O CD CD CD O rd £ X X 0 0 X •H £ £ £ W G d) w £ >4 £ X 0 O O E E 0 X! CD CD rd £ £ £ ' O G w f-C X o CD 03 U O 0 £ £ ^ x X W H U CD £ CD CD X O > £ X > X CD £ CD £ 0 a 0 X CD S 44 rd X X 03 03 X X £ CD d) CD CD rd rd £ X U (1) £ £ XX 0) CD CD X £ £ G U X (d X 1 O d) > CD > O X £ CD £ 4) E O E O x W O Q X G £ £ X av rd X rd X rd £ i43 o a U -H £ r-4 03 rd 03 rd £ - G W *h 1 £ — XX £ i— O X X £ £ E 0 £ •H £ rd GX rd -H £ CD X £ X Id £ X 0 u £ £ £ E o £ X O rd CD CD • • X •H rd O £ H n! £ rd X rd X id EXd O CD fO X X CD CD — X O £ X (d £ O O £ XX £ — U CD X O rd X O rd £ 0 o a O rd X £ £ Q O i—l i— Q O O X X £ i-3 0 X c3 U O £ G 4J P X G O O X -H G X O X X X 0 G X £ £ G X £ X C/3 £ £ X d) £ X £ O W £ GW £ x d £ O 03 O X O £ O X £ O £ CD £ rd ft£ 01X OU rd GX - fd Q-i *H ** X £ a CD G O W £ CD G O £ CD £3 P C £ a £ -H £ CD £ G £ £ O G £ £ O CD CD G 0 03 X - Id X rd O 03 X X O 03 X X S E £ O £ CD £ CD £ O £ £ O £ rd x £ £ £ O £ d) £ £ £ £ £ £ £ rd £ £ S 0 (X x £ X - ^ - W x G Q W X X Q •H CN ro 69 I l 11 1 i 1 Q c3 Pi 0 in 0 0 CD > > in O o £ X •H X X X _p 0 o 0 0 (C X m 0) £ X £ 0 0 0 IZI £ Q O £ X 0 0 0 oa £ O X £ X X X in -H 0 0 0 1— X-h 0 B B U 2 1— £ X £ 0 0 rd in CD 0 X 0 0 CO D X K o\° £ CO £ LO -H 0) 0 0 0 £ a •£ X x a -H 0 0 *H 0 X > -H EH >iX >i £ 0 0 X i— £ X X 0 > > X X >s X 0 X £ £ 0 0 C X 0 X X 0 0\° X X cd X 0 £ X m 0 0 g S-l -H e 0 X •rH CD £ H X • X 0 0 Great m p X Q X 0 £ 0 0 Public a D o c3 X 0 £ X X 0 2 0 0 V. IX 0 £ B E 0 XX in £ X 0 0 0 0 o £ W 0 0 0 and 0 Essex, IX X 1976. £ in in £ 0 0 Company >1 £ >i £ X in >i 0 X 0 0 £ rH X O 1 -H 0 0 Brentwood, E= X 0 H — •H 0 -H H £ X 0 0 0 Europe, >1 X X G X 0 £ £ 0 0 £ X >i D o B -H X X 0 > 0 > Motor CN 0 Eh £ *H O -H E O E 0 i— X £ £ £ 0 £ 0 X 0 X in .. I E X X 0 X £ 0 0 0 0 ^ v rH X m 70 Exhibit A-13 Ford Motor Company Estimated R&D Employment,'*' 1976 (excludes engineering) Number of Workers Percentage Total 1608 100 North American Operations 1440 89.5 Abroad 168 10.5 ^includes staff and hourly paid employees. Source: Personal interviews with the company. 71 . Exhibit a-14 Ford Motor Company , Estimated RD&E Employment ^ 1976 Number of Workers Percentage Total 13,600 100 North American Operations 9,000 66.2 Abroad 4,600 33.8 1 includes staff and hourly paid employees. Source: Personal interviews with the company and consultant's calculations. 72 Exhibit A-15 Ford Motor Company RD&E Employment — Staff and Hourly Paid Workers, 1976 Hourly Paid Staff Employees Total Total 8900* 4700 13,600 North American 5900 3100 9,000 Operations Abroad 3000 1600 4,600 *Form 10K, 1976 Source: Personal interviews with the company and consultant's calculations. 73 2 . 2 PRODUCTION ABROAD Ford maintains four overseas regional operations in Europe, Latin America and Asia-Pacific and the Mideast and Africa. Active manufacturing and assembly operations exist in all four regions. Exhibit B-l summarizes pro- duction operations for each region. Ford in Europe dates back exactly 70 years; the first overseas branch of the company was opened in France in 1908. The first national company and assembly outside North America was established in Britain in 1911. By 1976, 15 Ford national companies were operating in Western Europe, employing more than 145,000 people in automotive and tractor operations. Of these, eight national subsidiaries had 23 manufacturing and assembling locations throughout the region. The first Ford branch in Latin America was opened in Argentina in 1913. By 1976, six national com- panies, with more than 40,000 employees, conducted Ford automotive and tractor operations at 15 manufacturing and assembly locations in Latin America and in South Africa, which is included in Ford's Latin America region. Ford's operations in the Asia-Pacific regions were established in 1909 with the opening of a branch in Australia. By 1976, seven Ford companies engaged in automotive and tractor operations at 11 manufacturing and assembly locations in the Asia-Pacific region, em- ploying more than 19,000 people. Exhibit B-2 indicates specific locations of manufac- turing and assembly facilities for all overseas regions, and Exhibit B-3 identifies dealer assembly locations. 74 Ford's overseas facilities not shown in the tables above include a reconditioning plant in Ballarat, Australia and manufacturing plants of Richier, S.A. in France located at Charleville, Courbevoie, L'Horme, Lyon, Pont de Claix, Sedan and Villerbonne. Ford has owned Richier since 1972. Also, in Japan, a major manufacturing company, Japanese Automotive Transmission Company, is a 50 per cent owned subsidiary of Ford with extensive opera- tions throughout the country. Production data for key countries in Ford's overseas operations are presented in Exhibit B-4. The company's production activities abroad are further reflected in Exhibits B-5 and B-6 which summarize factory unit sales of cars from consolidated subsidiaries overseas. As in the case of R&D activities, examined in the previous section. Ford's automo- tive production abroad is highly concentrated in two coun- tries, West Germany and Great Britain. 75 Exhibit B-l Ford Motor Company Production Locations Abroad by Major Geographical Region in 1977 Latin Asia- Mideast Europe America Pacific & Africa Total Number of Nations with Production 86 7 2 23 Facilities Number of Production 23 15 11 2 5g Locations* *some locations have more than one plant. Source: Ford Motor Company, International Automotive Operations Exhibit B-2 Ford Motor Company Location of Overseas Manufacturing and Assembly Facilities City, Town Manufacturing Assembly Country or Province Plant Plant Argentina Cordoba x Pachico X X Santa Fe X Australia Brisbane X Broadmeadows X X Geelong X Ingleburn X Sydney X Belgium Antwerp X X Genk-*- X X Brazil Recife (Gaboatao) X Sao Paulo X X Taubate X Britain Basildon X Croydon X Dagenham X X Enfield X Halewood X X Langley X X Leamington X Southampton X X Swansea X Thames X Treforest X Woolwich X Egypt Alexandria X France Bordeaux X Ireland Belfast X Cork X Japan Yokahama X Malaysia Singapore X Mexico Mexico City X X Netherlands Amsterdam X New Zealand Lower Hutt X Wore X X Peru Lima ^ X Philippines Manila X Mariveles X 77 Exhibit B-2 (continued) Ford Motor Company- Location of Overseas Manufacturing and Assembly Facilities City, Town Manufacturing Assembly Country or Province Plant Plant Portugal Lisbon X South Africa Port Elizabeth X X Spain Almusaf es X X Taiwan Taipai X X Uruguay Montevideo X Vene zuela Valencia X West Germany Cologne X X Duren X Saarlouis X X Wulfratl X ^The Genk complex is located in Belgium, but is operated by Ford of Germany. ^not active. Source: Ford Motor Company, International Automotive Operations. 78 Exhibit B-3 Ford Motor Company Dealer Assembly Locations Country City/Town Name Costa Rica San Jose Anglofores, Ltda. Indonesia Djakarta Indonesian Service Co. Israel Tel Aviv Automotive Industries, Ltd. Korea Seoul Hyundai Motor Co. Malaysia Selangar Associated Motor Indus- tries of Malaysia, Ltd. Morocco Casablanca S . A. I . D . A. Trinidad Port of Spain C. McEnearney and Co. Tunisia Tunis Societe Tunisian d' Industrie Automobile Turkey Istanbul Otosan, S.A. West Pakistan Karachi Ali Automobiles Source: Motor Vehicle Manufacturers Association. 79 ) . Exhibit B-4 Ford Motor Company Unit Car Production Abroad for Major Manufacturing Subsidiaries 1976 Products Passenger Cars Location Produced Year ooo's units Germany Ford-Werke Fiesta 1976 449 Escort 1975 385 Traunas 1974 266 Capri 1973 426 Counsul 1972 409 Transit United Kingdom Ford Motor Co. Capri 1976 383 Cortina 1975 330 Escort Granada Australia Ford Motor Co. Escort 1976 110 Cortina 1975 100 Falcon 1974 112 Fairlane 1973 100 1972 100 Brazil (production includes trucks and buses Ford Brasil, S . A. Galaxie 1976 172 LTD 1975 170 Maverick 1974 176 Corcel 1973 148 1972 119 Source: Motor Vehicle Manufacturers Association 80 ) Exhibit B-5 Ford Motor Company Factory Unit Sales of Automobiles from Plants of Consolidated Subsidiaries Abroad "*- 1972-1976 Great 2 3 Year Germany„ Britain Brazil Other Total (units of automobiles (000) 1976 774 374 128 175 1451 1975 596 337 123 195 1251 1974 451 422 130 209 1212 1973 679 475 106 206 1466 1972 670 516 87 193 1466 ^"excludes the U.S. and Canada. 2 includes the Genk complex, located m Belgium, but operated by Ford of Germany. 3 principally Australia, Mexico, Argentina, South Africa and Spain. Source: Ford Motor Company, 10K Report. 81 6 : 8 8 Exhibit B-6 Ford Motor Company Factory Unit Sales of Automobiles from Plants of Consolidated Subsidiaries Abroad as Percentage of Total Factory Unit Sales Abroad^, 1972-1976 Factory Unit Sales from Germany^ from Great from Brazil from Other a % of Britain as as a % of Subsid. as Year as Total a % of Total Total a % of Total Total 1976 53.3 25.8 8 . 12.1 100.0 1975 47 . 26.9 9.8 15.6 100.0 1974 37.2 34 . 10.7 17.2 100.0 1973 46.3 32.4 7.2 14.1 100.0 1972 45.7 35.2 5.9 13.2 100.0 "'‘excludes the U.S. and Canada. 2 includes the Genk complex, located in Belgium, but operated by Ford of Germany. 3 principally Australia, Mexico, Argentina, South Africa and Spain. Source Exhibit B-5. . . 2.3 SALES AND MARKETING ABROAD In 1976, Ford's sales totaled $28.8 billion. Of this. Ford earned $26.5 billion from automotive sales world- wide and $2.3 billion from non-automotive sales. Exhibit C-l shows the relative contributions of the company's automotive and non-automotive operations to sales from 1972 to 1976. Also, Exhibits C-l and C-2 compare North American and over- seas automotive sales for the same five year time period. Of automotive sales totaling $26.5 billion in 1976, 70 per cent ($18.5 billion) were sold in the U.S. and Canada, while 30 per cent ($7.9 billion) were sold abroad. In 1972, 75.5 per cent and 24.5 per cent of total automotive sales were sold in North America and overseas respectively. Whereas automotive sales in the U.S. and Canada increased by 32.7 per cent from 1972 to 1976, automotive sales abroad increased by 75.1 per cent over the same five year time span. Ford's primary foreign markets are in Europe and Latin America, as indicated by Exhibits C-3 and C-4 Of its total overseas sales of $9 billion ($7.9 billion in automotive and $1.1 billion in non-automotive) in 1976, 65 per cent were gained from its European operations and approximately 20 per cent from Latin America. The remaining 15 per cent of Ford's oversea? market is from the Asia-Pacific region (primarily) The company's sales record in 1976 was mixed with reference to its two major marketing areas. In Europe, retail sales of Ford-built cars and trucks were 83 . . . record breaking1 in 1976, reaching 1.2 million units. Auto- mobile sales alone, up 30 per cent from 1975, totaled 1.1 million units. On the other hand, retail sales of Ford- built cars in Latin America declined by approximately 5 per cent in 1976, compared with 1975. Retail truck sales rose from 115,000 units in 1975 to 116,000 units in 1976, but automo- bile unit sales declined from 223,000 (1975) to 212,000 (1976) Overall, 1976 was a growth year for Ford products abroad as indicated by the increase in the company's share of the world market for both cars and trucks (Exhibit C-5) By 1977, Ford had marketing and sales operations in twenty-seven countries outside the United States and Canada with 6,153 marketing related employees. In North America, on the other hand, Ford employed 10,320 marketing personnel 2 In the U.S. and Canada, thirteen marketing units existed in 1977, compared to a total of twenty-eight abroad 3 (one unit in each country) . All of the marketing units abroad served primarily national markets. None serviced markets in more than one region and none serviced the U.S. market. Exhibit C-6 shows the specific locations of these sales/marketing operations. Ford Motor Company, Annual Report, 1976. 2 . A marketing unit is a separate entity, in a legal or organizational sense, with responsibilities for at least one marketing activity (sales, distribution, advertising, marketing research) for a given territory. 3 The, exception is Austria with two marketing units. 84 Exhibits C-7 through C-9 summarizes the passenger vehicle models that are sold by country for the European, Latin American, and Asia-Pacific areas. Finally, Exhibits C-10 through C-26 show the organizational position of "sales and marketing" units within regional and national organizations operating abroad. 85/86 & Exhibit C-l Ford Motor Company Automotive and Non-Automotive Sales 1972-1976 Year Automotive Sales Non-Automotive Sales U. S . Canada Overseas World (millions of $) 1976 18,855 7,944 2,341 1975 14,765 6,923 2,321 1974 15,750 5,778 2,093 1973 15,785 5,255 1,975 1972 13,980 4 , 536 1,678 Source: Ford Motor Company, 10K Report. 87 Exhibit C-2 Ford Motor Company North American and Overseas Automotive Sales as Percentage of Total Automotive Sales North American Automotive Overseas Automotive Year Sales as % of Total Sales as % of Total Total 1976 70.0 30.0 100.0 1975 68.1 31.9 100.0 1974 73.2 26.8 100.0 1973 75.0 25.0 100.0 1972 75.5 24.5 100.0 Source: Exhibit C-l. 88 Exhibit C-3 Ford Motor Company Sales by Geographic Area 1975-1976 1 (millions of $) Areas 1976 1975 U.S. and Canada 19,858 16,129 Europe 5,847 4,734 Latin America 1,783 1,790 Others 2 1,352 1,356 Worldwide Total 28 , 840 24 , 009 automotive and non-automotive. 2 principally Asia-Pacific. Source: Ford Motor Company, 10K Report. 89 i1i1 11 11 1!1 i 1 1 i1 1 I 1— o O • • ptd o o 0 o o E-t 1— rH CO 0\0 td QJ rH CO CO LD td £ r- o QJ i -H to > in P QJ O t" H i— cr. 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Csj" cu co' o 3 vO i © £ -* >1 03 co r- co cn n- c\j N io m xj- 5 -C c 03 co' t-' in r^‘ in in T-' CO T-' T* •o - (/) T~ OJ Report, (d c 0j «3 IT) 6 k. 1 0 (U u u O o o o ^3 CO o_ o o o o o o o (O - — CD -p u 3 C — OO CO CD co' cn" "S OJ CO 81 CD OJ CO Annual •H 0 £=>« CD CD Tj- C\J OJ a! Si 4-> cc CO *H 0 cc Si a < X o w a) u k. n«J R-* 03 CD CD CD co n- oj ^r Tj OJ 'J ro 0 ro -C oi CD in co’ in in =s U-P Cm ^ W si £ u, ro >- £3 _ CO 2 CO — CD 7S -03 Motor C/) in Ford aS c CO as O CD H E c 0) Source: o 03 E CD in 03 Q) -a < CO CO = CD CL -r-S 00 c O CO : T3 O) P. c ~ < o T3 CO TD c © F © CD =3 CD - c CD C O 3 0 3 0 £ 5 < O < 91 Exhibit C-6 Ford Motor Company National Sales Offices and Sales Headquarters Country City/Town Argentina Buenos Aires Australia Geelong Austria Salsburg, Vienna Belgium Antwerp Brazil Sao Paulo China, Republic of Chung Li (Taipei) Denmark Copenhagen Finland Helsinki France Paris Germany Cologne Ireland Cork Italy Rome Japan Tokyo Malaysia Singapore Mexico Mexico City Netherlands Amsterdam New Zealand Lower Hutt Norway Kobotn Philippines Manila Portugal Lisbon South Africa Port Elizabeth Spain Madrid Sweden Stockholm Switzerland Zurich United Kingdom Brentwood Uruguay Montevideo Venezuela Caracas Source: Ford Motor Company, International Automotive Operations, Information Background: Ford Around~the World, September 1, 1977. 92 J * * Granada X X X X X X X X X X X X X X X i K * * 'Ca X X X X X X X X X X X X X X X Ocd Cortina X X X i K*1 c (0 a, g * r~ 0 Taunus X X 1 u X X X X X X X X X X U P -P 0 , •H -P X! 0 •H S x: X T3 w P 0 En * Escort X X X X X X X X X X X X X X X OPERATIONS system Fiesta X X X X X X X X X X X X X X quota to AUTOMOTIVE O O due sales r? cd CO T3 TJ s c 03 1 s "rt >> 'u Limited Tl hE a EUROPEAN 03 o 0) M (D 33 c s Denmark 'O Austria Belgium Germany «*-» Britain Finland France r" Vi Ireland o rt > cd Italy o o Q. •««* O £ £ Pi CO CO CO * 93 . i paoa X X X X Country OPERATIONS* Venezuela ouex-ijta X X X X X By X X X X Summary AUTOMOTIVE Car pjoj X X X X X Mexico X X X X X AMERICAN Suuxsnn X X X X X X (ova) LATIN X X X X X Bpmreao Africa (ova) X X X X X X X 1977 eui^io3 X South (ova) X X X X X X laoosa Worldwide, paoj X X X X Company Trucks: C-8 Brazil X X X X X X X Motor & Exhibit Xoojoo X X X X X Cars designed Ford ounx-nuj X X X X Africa Company, Operations Argentina uooxta X X X X X X South in Motor snunnx X X X X X Automotive operations Ford U 3-spced -speed 2dr 2dr C 4dr litre litre litre litre litre litre litre litre c5 co CID CID CID CID CID CID 0 European includes 3 0 3 5 0 4 . G Cvl styles Source: 1.4 . 2.0 188 221 250 302 351 100 o 2. Transmissions 1 1 2. 2. 3. f-> Automatic f— Engines Manual, C./ LAAO 00 -4-> Wagon, Sedan. Coupe, (EAO) 1-4 1-6 1 Body ri r— V-4 V-6 1 > 1 | * 94 I — Japan T3 C _G k X X Thailand X G x: H G a £ l X Taiwan X X Hrt rt •H m > Malaysia X X X X X X rE 73 © V o 1977 a cl X X X X Singapore X X tx -HG Vi G , O £i • H cn S.i Vi Company O © C-9 © 3 Worldwide XI .G m ^ H © bo Motor Exhibit G X X X XX Philippines 1 6 a X X 3 3 •—1 o X•r* Ford © Ph Trucks: eS . .2 H G 7§ & Vi G Zealand If Cti < U Company, OPERATIONS X X X X X X Australia X X X X X X Motor >> u tn rn T3 +-> G Ford AUTOMOTIVE o G o m • r—t Country 3 G O T3 ’O co O G >> co Vi G g PQ G G, rt © o X By m G 'f* ) < O G > co co o: _ < G »/• Source: r ' O E X o ftH Z C O £ 5 71 £ 3 > - co CO CO co w Summary £ £ © -t-> © © o © © ASIA-PACIFIC CO •H I »H G C E- y-> c •r—t *"H c c w ^ >1 V v v C G PC - c c r t © 4 C o © © c S © r- P MU} 9" 3 3 w* c £ G o i *—* > 1 03 V j X o Car w o G O <• J PQ W * H K xjp H M 95 1 SALES r H( PPII'AWf MIN' MON (II I OKI) 01 lliwnri I rnm-nwA n >, i', io rn owniKAH mi aui(»»«o)£i vf Amvr i •» oi mi 1 'IMP Ol MlROPI AN 1080 AN 1 1 V 'Ml I'l'HPftSf llll -i (MAW I ’ » ' I T I NOI f A ' ! I Hf MANN I W IN Ml i f M H» S A< I V I I i , ( r Wl API ONftlN* 10 AND I HI INO I V I i)IIA| S WHO A*l SI'ONS •r.lf l?K rO-OHi)! NAI ION I HI HwOMN I IN'S I NO I C A II ARI AS 01 « O'MUNK.AI ION AN 0 CO - 0»0 1 M A I I ON HI SI'ONS I R 1 1 I 1 Ml| » IO .H- ( r I f N • 'M*. I AN f Ovl I O' A 0»') fQMI AN H'NMhi <*0 • 0' -OK'MnA| IN'. .IWVlCfS ON Rl H A| ' HA I (OMl’ANi 10 ' ANOJH? fOHC COMI-AN Y I Hf CO^IOI SOfH S I fi V I f S ! HI I l I 0 ' 10 Tf f •' 0Mr‘ AN* 8f (f |V INf, SUCH SIHVin » H» MANAGHHNI C» Thf ArfAiR .ijf f ACH I0H0 COMPANY (ONllN'.llS IO Rl • li i f.l i.Ovf-N Hf SPOnti Ri | It I HI HOAWD O' OlHfCIOfiSOROIHfa • |„* INC- By* • COMPANY. Exhibit C-10 Ford Motor Company MID-EAST AND AKR ICA SALES OPLRAi lONT (Ford of Europe Incorporated I V ice President PERSONNEL AND SALES AND MARKETING EUROPEAN SERV ICE ORGANIZATION D i rec tor 0 i rector Vice President FORD MOTOR FORD-WERKE A.G. EUROPEAN SALTS COMPANY LIMITED OPERA! IONS - . Manag i ng D i rec tor General Manager V ice Pres ident 96 Exhibit C-ll Ford Motor Company FORD ASIA- PACIFIC, INC. FORD INTERNATIONAL AUTOMOTIVE OPERATIONS Ford Motor Company Organization Manual - September 1, 1077 97 Exhibit C-12 Ford Motor Company FORD MOTOR COMPANY OF AUSTRALIA LIMITED • I In- (‘.Mir i tl Traetor.mil Kipupmrni is ilrli')>.ti«'.l opr r.ti mnal atilliorit\ lo manage ilu* subsi.li^rs 's ir.irloi lnusinrsn .mil iviyu'i'S in. i rkr i ii'^ .nlviM ami .issi.siimn* from Truetor Opr tail luna - Overseas Affiliates. t oitl Motor Company Oryani/ution Manual - September 1, 1977 Exhibit C-13 Ford Motor Company FORD MOTOR COMPANY ( JAPAN ) LTD. ns AIL INC • ADDRESS: Toranonum Yamakaslu Muildin,n — 1 -4 0 Toiatiomon 1-C'home I Mm.Uo-Ku, Tokyo 10a Japan CARLE ADDRESS: FOMOJA TOKYO I TELEPHONE 43o-U191 | I ^TELEX 242-5055 _J Ford Motor C offipany ( ) refill rzal inn Manual - September 1, 1077 99 Exhibit C-14 Ford Motor Company FORD MOTOR COMPANY OF NEW ZEALAND LIMITED 0 MAILING ADDRESS: P. O. Ht'X 30012 l.owc;* Unit, New /.ralnnd i CABLE ADDRESS: NLVVZt; Al'OUD. W I LI 1NGTON | | TELEPHONE: (U»(»-‘)0i) TEL EX: 3411 | * I he Tractor and Implement Manager is delegated aulhorily to manage the subsidiary *s tractor business anil receives marketing advice ami assistance from Tractor Operations - Overseas Affiliates*. Ford Motor ('oinpany Organl/alimi Manual - March I, I iiVC. 100 Exhibit C-15 Ford Motor Company FORD MOTOR COMPANY PRIVATE LIMITED MAILING ADDRESS: P. O. Box 4047 | n Uukit Timah Post Office Singapore CABLE ADDRESS: SI NO A FORD SINGAPORE TELEPHONE: 660111 | TELEX: 21016 Ford Motor Company Origin l/.al ion M.mu:il - M-u-rh 1. Pi/i. FORD PHILIPPINES INC Exhibit C-16. MAILING ADDRESS P. ( ). Box 4 1 5 Ford Motor Company Makati Commercial Center Makati, Kizal 3117, Philippines TELEX: 742ii:i IP CAULK ADDRESS: KORDIMUL MANILA TELEPHONE: hj jii :»i 83 53 44 83 54 44 Ford Motor Company Oi garir/utlon Manual September 1, 1077 FORD L 10 HO MOTOR COMPANY LTD. (TAIWAN ^ Exhibit C-17 Ford Motor Company ^MAILING AUUHKSb: I’- O. Ilox 12 Chungli, Tnoyuan Taiwan 320 Republic of China CABLE ADDRESS: FOUD1.H (Chung Li) 42 3121-50 TELEPHONE | | 3 516 ^TELEX: 7 _j Ford Motor Company Organization Munual - October 1, 107H FORD MOTOR COMPANY (THAILAND) LIMITED Exhibit C-18 Ford Motor Company l MAILING ADDRKSS: (J.I'.O. Box 11-2 I 1 Tuk.uinni', Bangkok, Thailand 1 CAULK ADDRESS: KOUI> THAI <> TEL.Kl'HONK: Ui-D.jU . !ll()-!)l:i j j^TKI.EX: I'OltmilAl HKK 370 !• Mi*fJ ** Motor Company ( )r '^anr/.ation M.mn.il Mar*li I /«» 104 Exhibit C-19 Ford Motor Company FORD LATIN AMERICA, S.A. de C.V. FORD INTERNATIONAL AUTOMOTIVE OPERATIONS Exhibit C-20 Ford Motor Company FORD MOTOR ARGENTINA S.A. Organization - Ford Motor Company Manual Saptamber 1, 1877 106 FORD BRASIL S.A. (maiung address Caixa Postal 8610 S jo Paulo. Brasil Exhibit CABLE ADDRESS FOKD MOTOR S AO C-21 PAUIO (I1RA7.11 t I TELEPHONE: S:»o Hci u.mlo 4.»7-U3:i Ford Motor Company Hrinar*!*' TEL EX: Sao f | 107 FORD MOTOR COMPANY S.A. (MEXICO) Tlu‘ Tractor Mumper is delegated operational! uuthon!\ to manage the awl'Suliary'a tractor business aiul iirmi'S market! IV *d\ ivT assistance trom l Yu* tor Upei atii'ru - t>ver* seas Alfiliates. Ford Motor Company Organization Manual - September l, 1077 108 1 i FORD MOTOR COMPANY OF SOUTH AFRICA (PTY) LIMITF 7) Exhibit C-23 MAILING ADDRESS: P O. Box 788 n Pori Etiz.alw'lh, Soulh Africa CABLE ADDRESS: FORD AFRICA PORT ELIZADETH Ford Motor Company i (SOUTH AFRICA) TELEPHONE: 2 » 0 1 ] TELEX 74-7-U1PE | J • Hu Comu'ikI ITavlor Minigrr la delagatisj v'lH'ial ivMiAt dUllUM'Uv to manage the aubdivlidi'N *• b’>r.* *uul rnfuri marketing « ivu r Company Oi gdiii ml Ion M .1 in t :« September 1. ll>/7 - dti. I Irom l 1 tor O|»ot aliens Owr- 109 1 . 11 Alhlial *•*, FORD MOTOR dG VENEZUELA, 3. A. Exhibit C-24 MAILING APPHESS: Apart ado Cl 131 del lisle 1 Ford Motor Company | c .irac.is. V'ene/uela CABLE APPHESS: FORDMOTOR CARACAS (VENEZUELA) I | TELEPHONE Caracas 7G;“>377 Caracas 22740 | TELEX: The Tractor Manager is delegated operational authority to manage the subsidiary's tractor business and receives marketing advice and* assistance from Tractor Operations - Over- seas Affiliutes. Ford Motor Company Organization Manual - September 1, 15)77 FORD ( URUGUAY) S.A Exhibit C-25 (mailing ADDRESS: Casilla de Curreo 21)6 Montevideo, Urumjav Ford Motor Company I CARI.E ADDRESS: EOHDMOTOH MONTEVIDEO (URUGUAY) | TELEPHONE: 20-75-21 | TEL EX: 308-306 Ford Motor Company Organization Manual - March 1, 1077 Exhibit C-26 Ford Motor Company FORD MID-EAST AND AFRICA, INCORPORATED FORD INTERNATIONAL AUTOMOTIVE OPERATIONS Ford Motor Company Organization Manual - September 1. 1977 112 3 . CHRYSLER CORPORATION 3.1 RESEARCH, DEVELOPMENT, AND ENGINEERING ABROAD Chrysler' s research, development and engineering (R D&E) expenditures are primarily focused on (1) fuel economy, (2) emissions control, and (3) safety. In support of these activities, Chrysler is also investigating (1) low weight materials, (2) electronic controls for engine opera- tions, (3) the light diesel engine, and (4) the turbine engine. While most of this R D&E is done in the U.S., Chrysler does conduct some R D&E operations abroad. Chrysler 's U.S. R D&E is undertaken for both the domestic and foreign markets'*' while its foreign R D&E is primarily concerned with national or regional markets. As shown in Exhibit A-l , Chrysler' s R D&E expenditures have fluctuated substantially over the past six years. Chrysler has R D&E facilities in the U.S. at the following locations: (1) Defense Group, Highland Park, Mi., (2) Engineering, Product Development and Pur- chasing, Highland Park, MI, (3) Marine Products, Wairen, MI, (4) Amplex Division, Detroit, MI, (5) Chemical Division, Trenton, MI (6) Defense Division, Center Line, MI, (7) Huntsville Electronic Division, Huntsville, AL, (8) Arizona Test Station, Phoenix, AZ , (9) California Emissions Test Facility, Santa Fe Springs, CA (10) Proving Ground, Chelsea, MI. 113 During 1976, Chrysler and its consolidated sub- sidiaries spent $280.4 million on R D&E and employed 2500 professional employees. Of this total expenditure, $42.8 million was done as customer-sponsored research employing 200 professionals. For 1976, R D&E expenditures comprised (approximately) 2% of its total sales and RD&E employment comprised (approximately) 1% of total employment. As can be seen in Exhibit A-2 , percentages are representative of the past five years. Chrysler Corporation was not willing to estimate roughly how much RD&E was performed abroad. However, Exhibit A-3 shows that, in terms of total space for facili ties devoted to Engineering and Research, Chrysler's U.S. operations comprised roughly two-thirds, while its foreign operations comprise one-third of the facilities space. This study was unable to find a breakdown of the research versus the engineering facilities, but we believe the majority of the foreign space is devoted to engineering rather than research. This belief is supported by data presented by General Motors and Ford in Chapters II and III that showed a tendency exists for manufacturing operations to accompany engineering operations. Inasmuch as Chrysler has thirty-four manufacturing plants in twelve foreign countries, this study feels that the majority of "research and engineering" space is devoted to engineering activities 114 Exhibit A-4 shows that Chrysler devoted approxi- mately 3.6% of its domestic facilities space to "Engineering and Research" while its foreign operations devoted (approxi- mately) 2.6% of its facilities use to the same functions. Again, as revealed in Exhibit A-4 , these figures have held fairly stable over the past five years. Virtually all of Chrysler' s foreign RD&E has been obtained through the acquisition of Simca in France (1958) \ o Rootes Motors Corporation, Ltd. m England (1964) and 3 Barneros, Ltd. m Spam . In 1967, Chrysler consolidated its European operations by forming the Chrysler Europe Corporation. The corporation managed Chrysler' s international (1) marketing, (2) financing, (3) administration, (4) produc- tion, (5) planning and (6) development. Within this organization, each division has an executive director who reports to the President of Chrysler. In Europe, approximately 2000 individuals report 4 to the Director of Product Planning and Development. Chrysler purchased a 15% share of Simca in 1958 and subsequently increased its share to 64% in 1963. In 1970, Chrysler changed Simca 's name to Chrysler, France. Today, it owns 99.6% of this company. 2 Chrysler purchased a minority share of Rootes in 1964. In 1967, it increased its share to enjoy majority centre) Tod^y, °co 4-^s is a wholly-owned subsidiary whose name has been changed to Chrysler, United Kingdom. 3 Chrysler purchased Simca, Rootes and Barneros for their productive capabilities of their existing product lines rather than for their R&D capabilities. For instance, Simca was originally a part of Fiat and Fiat, an Italian firm, did most of its R&D in Italy. While there was definitely a transfer of technology and engineering through this European acquisition, the manufacturing aspects appear to have been much more important. 4 Figures obtained through personal interview. 115 . . . s Of these 2000 employees (includes non-professionals), 1700 are involved with passenger car RD&E while the remaining 300 perform RD&E work for trucks and tractors. Exhibit A- 5 shows an estimate of these 2000 RD&E em- ployees by their national location. Judging from the data in Exhibit A-5 ^pd information obtained from the other automobile manufac- turers, a strong correlation seems to exist between the size of a subsidiary's manufacturing operations and its R&D expenditures. Exhibit A- 6 shows the size of Chrysler ' operations in the U . S . , France, and United Kingdom, and Spain, along with the percent of total operations each comprises Multiplying the derived percentages in Exhibit A- 6 by the total non-customer sponsored research Exhibit A- 1 , and estimate is derived of the total R&D expenditures in each country (see Exhibit A-7) In an interview with a Chrysler source, it «?.s roughly determined that Chrysler Europe performed $50-to- $70 million in RD&E in 1976. (This range included the $64.62 figure estimated in Exhibit A-7) . In the same interview, it was stated that only $2 million (approximately) vas spent on "basic" research abroad. The remainder was spent on projects with a time horizon of one to three years (i.e., product engineering, design and manufacturing). In the interview, it was estimated that each R&D worker costs Chrysler between $25,000 and $35,000. With 2000 employees, this sums to $50 million and $70 million respec- tively. ^ Ibid . ^ Ibid 116 . , s Exhibit A-8 shows the R&D facilities in England and France. While some information was obtained on Chrysler ' research efforts in England, similar information could not be obtained for France — especially and most importantly for the Poissy operation. According to one source, Simca's R&D is carried out at the Poissy Engineering Center where "the River Seine acts as a moat to protect the new center from 2 prying eyes." So tight is the security at the Poissy plant that is 1971, only one distant aerial picture was known to be available 3 It should be noted that both Coventry, England and Poissy, France, Chrysler has manufacturing and assembly plants. This suggests that the R&D is closely tied to the actual manu- facturing operations in those countries. This idea is reinforced by the fact that only $2 million is spent on "basic" research in Europe. Also significant here is the fact that of its foreign operations (excluding Canada and Japan) France and England rank first and second respectively in total output and square footage owned by Chrysler. 117 : Exhibit A-l Chrysler Corporation Total RD&E Expenditures and Professional RD&E Employment $ $ (millions) Professional (millions) Professional Total R &D R&D Employees Customer Sponsored R&D R&D Employees 1976 280.4 2500 42.8 200 1975 199.0 2200 39.9 300 1974 239.0 2800 52.9 400 1973 247.0 3000 46.4 600 1972 190.5 2700 34.5 900 1971 146.5 2400 25.0 700 Source Chrysler 10K report, 1976. 118 Exhibit A-2 Chrysler Corporation Total RD&E Expenditures and Employment as Percentage of Total Sales and Total Employment Total RD & E $ as Year % of Total Professional R&D Employees Sales as % of Total Employees 1-1 00 1976 • 1.02 1975 1.7 1.01 1974 2.1 1.09 1973 2.1 1.20 1972 2.0 1.10 Source: 10K Report, 1976. 119 : 3 Exhibit A- Chrysler Corporation Engineering and Research Facilities - 000s Square Feet (%) World U.S. Foreign Year Total Total Total 1976 3518 2429 1089 (100) (69) (31) 1975 3514 2414 1100 (100) (70) (30) 1974 3470 2414 1053 (100) (70) (30) 1973 3462 2329 1133 (100) (70) (30) 1972 3344 2293 1051 (100) (69) (31) *Principal engineering and research facilities in Highland Park, Michigan. Source 10K report# 1976. 120 Exhibit A-4 Chrysler Corporation Engineering and Research Facilities as Percentage of Total Facilities U. S. Foreign Engineering and Research As Engineering and Research Year a % of Total U.S. Facilities' As a % of Total Foreign Space Facilities' Space 1976 3.64 2.63 1975 3.59 2.62 1974 3.63 2.53 1973 3.56 2.73 1972 3.54 2.49 Source: 10K Report for 1976. 121 Exhibit A- 5 Chrysler Corporation Location of RD&E Employees in Europe England France Spain Passenger Car R&D 850 850 0 Truck R&D 150 0 0 Truck and Tractor R&D 0 0 150 Source: Personal interviews. 122 1 11i 1li 1ii1 1I I11 I .I1 00 r- O' 00 • • • • • "Sf *H O o o o o (0 o o o o o a ro ro ro 00 CO 'vT G O •H X Mi nt rd CO 03 H ro - rd o\° • • u X X 0 •H i— o o i— H H CO 1 0 G — H i— H i— CO G CO < X G co 0) O CO CD Q o •G in G CD >4 (0 o o o o O G X -H • o o o o O G X CP o 1— ID r— X X •H • V. o 0 fd CO D o> o o o o X 1 rd X! 1— — 1— rH x G G I I G co c o G 0 fO * H U *H X CD S x i— CO 0) fd X CD • • • • • 1 1 (D o i fd X o\° 1 rH i— — rH > < g O r— f— i— rH i— U co 0 (D *H 1 CD X Oh 1 CP *H G 0) x X 0 CO a) fd *H U > a x X X 1 X G G X O U CD G O O G •H g •P o U 00 o 00 ro LD CO • • • • • X LO ro CM ["- 03 o> 03 03 i— i— i— H H 123 I 1 i| 11i 1il 1 i i1 11 G o CO LT) CO G *^r X G 0 • • • • G CX 1— CO r- G CO I— CO X0) G X CO X CD X s *H 0 G X D tX> G VsO r- CO • CD •G CO D) CM D CO X cn IX o • • • • G G X CD in o CO r- 0 • 0 *H X CM i— CM CM — •G •H X G (D X X O G X G G •H •H i— g 0 X G G 0 CD •G l G G X q_l G < 0 X G o O u •H CO - X X 0) H G G X rl cn X 0) CD CD X o p- -G i— & X CD D> i— 00 G cn X CD U in i— CM 00 p* G x i— • • • • • X W CD r-H G X 1 i i M G 1 -H G r- CO — CM r- — X w CD G CN i— CM CM r-H G >— u t-3 co IX cn Q G P4 0 X CJ CD X •• G CD g r^- 00 CO O • • •H (T\ — O i— G X CO • • • • • G Cfl • CM V£> LO LO CO 0 1 H D r- i— CO — CO i 1 — i— i— i— — ID ID CO CM r- P- r- cp 124 1 t — 1 i11 l l 1 11 'i CD rH o 1— 1 •H 1 CO 13 as x G -P CD CJ CD >i -p CD •H CO -H -H CD iH c > d -p G-H d CD CD -P Id-rl 0 • CO > £ f— G -G rH p CO •H • •H i • 1 P -p -h g fd G 13 • ^ 1— fd 0 CD -P 0 d CD CD 1 •H x CO g CO 0 -P 0 CO r- O -p 0 CD P CO p d p CD CO G G -P CD CO CD i— 1— d. CD CD >i -P -P 1 CO d g 13 G CO P CO CO CD CO d 0 CD CO CO -P >, P CO •rH 0 CO -H -P *H CD -H p rH 1 0 0 G 1 CD CO p D d rd X 0 X CD 13 CO 13 O CJ a) fd p O > d-HHU CD P c s CD CD CD rH £ 0 G CO-H >i p CO g X 13 O CD O fd POX) CD 0 fd •H 2 l-H +. X Jh -H 0 < • i— — -p •H rX fd G 0 O O G 0 fd d O •H Cm p •H X *. &H CO X •H z W P td 13 CO TO fd G CD G Q c o P •H d rd CD X CO i -P X CO 0 p G Co r" CD c fd (d CO H G P 0 CJ u G •H Q •H i -H Co P G x p Co P G CD •H X fd CD G CD CO •H CD td O p Cr> •H CD G P G X G CO 0 C CO P G •H Co CD -H •H CD O-i CD X CD •H > G CD CO P P 1 i— P 0 0 X p P 13 fd CD 1 X 0 CQ cj d Eh << S CO CO CJ Cm CD Dh d p - CO X - 1— CJ P fd •H 1 —CD i 1 P CO X .. G 1— CD 0 fd CQ X CD CD •H o CJ CD G CD O O X •H vT 0 CD CD u P P fd • C G CJ O G CD d d o d X ro fd G fd G o 0 o • a d P CO fd p •H CQ CQ X D CD 13 CJ Cm G p Cm fd Eh (d •H Cm X 13 P O >i P p P G t— CN V — C CD >i d >1 P CD CD CD 0 — i fd i— (D CD X i— 0) >1 — X CD CO i— >1 rH G CO G CO CO CD O CD >1 X CD X CD >1 •H CO >1 X G g p •H X •H > p Co •H p P fd fd X X X X 0 X G 0 X 0 p 2 CJ 2 rH CM 00 125 3.2 PRODUCTION ABROAD Chrysler has manufacturing $/or assembly plants in three general world locations -- Europe, Latin America, and the Far East and Africa. Its foreign subsidiaries operate from forty-three locations in nineteen countries (i.e., outside the United States and Canada. — See Exhibit B-l ) . These subsidiaries produce both passenger cars and commercial vehicles — with particular emphasis on the production of passenger cars. Chrysler' s European operations are relatively new. Virtually all of its subsidiaries were acquired when Chrysler purchased Simca - Societe Industrielle de Meranique et Carrosseue Automobile — in France (1958), Rootes Motors, Ltd. in the United Kingdom, Ireland and Scotland (1964) and Barrieros Ltd. in Spain. The operations in these three countries dwarf Chrysler' s operations anywhere else in the world. While all three operations produce for both domes- tic and foreign markets, Chrysler 's principal export facilities are in France and the United Kingdom. For the most part, these exports are channeled to other Common Market countries. Exhibit B-2 reflects the extent of these exports. 126 Production in Spain, Latin America and the Far East and Africa is predominantly intended to satisfy domestic demands.'*' In all cases, the size of the facilities in these countries is so small as to render insignificant any potential exportation that does take place. (See Exhibit B-3 ) . Chrysler 's manufacturing facilities parallel its engineering and research facilities. Approximately two- thirds of its manufacturing facilities (in square feet) are in the U.S. while one-third is abroad. Assuming that Chrysler' s manufacturing size bears a direct relation to the size of its operations in each country, estimates can be made for the size of the manufacturing operations. Exhibit B-3 shows the per cent of Chrysler' s total properties (i.e., manufacturing facilities, car, truck and coach assembly facilities, parts depots, engineering and research facilities and warehouses, general offices and miscellaneous space) as distributed across the world. Exhibit B-4 shows the actual size of its manufacturing and assembly facilities between the U.S. and abroad. Finally, Exhibit B-5 applies the percentages in Exhibit Br-3 and the square footage in Exhibit B-4 to arrive at the square footage of manufacturing and assembly plants in each country. Chrysler 's South African plant was expanded with the intention of having sufficient capacity to supply other African countries. However, data are unavailable to verify the extent of its export sales. 127 One can gain further appreciation for the size of Chrysler' s European market by looking at Exhibit B-3 Over 85% of Chrysler's facilities are located in the U.S., Canada or Europe. The European market is nearly four times the size of the Australian market and the Latin American (i.e. "other" market). In Europe, Chrysler maintains nineteen manufac- turing and/or assembly facilities in six countries. Exhibit B-6 shows the countries in which these facilities are located. Exhibit B-7 shows the size of the production in each country. In Latin America, Chrysler operates nine manufacturing and/or assembly plants in six countries. Exhibit B-8 shows the countries in which these facilities are located. Exhibit B-9 shows the size of production in each country. Finally, in the Far East and Africa, Chrysler maintains nine manufacturing and/or assembly facilities in six countries. ExhibitB-10 shows the location of these facilities. Exhibit B-ll shows the size of produc- tion in each country. One final area of interest is the production capability that Chrysler gains through its connection to Mitsubishi Motors Corporation (MMC) in Japan. Exhibit B-ll shows that production by MMC is sizeable — exceeding the 128 1 size of Chrysler' s U.K. subsidiary. Currently, Chrysler has a 15% interest in MMC with an option to increase its interest to 35%. Also, Chrysler has cultivated closer ties to the Japanese market. (1) In 1971, Chrysler Australia, Ltd. agreed to assemble the Japanese Colt Galant in return for the Australian-built Valiant being sold in Japan. This was significant because it was a first step by the Japanese in opening up their market to foreign competition. This arrangement was part of the deal by which Chrysler was allowed to purchase 35% of MMC ' s stock. (2) Chrysler and Mitsubishi have also exchanged service tutors in an effort to improve the efficiency and understanding of Mitsubishi's and Chrysler 's service and staff. ^ "Chrysler-Mitsubishi Swap Service Tutors", Automotive News, December 20, 1976, p. 12. 129 Exhibit. B-l Chrysler Corporation Location and Purpose of Production Operations Abroad Purpose Country City Name Manufacturing---Assembly 1) Argentina Buenos Aires Chrysler Fere Argentina-San Justo X X 2) Argentina Buenos Aires Chrysler Fere Argentina -Monte Chingolo X X 3) Australia Adelaide Chrysler Australia- Clovelly Park X X 4) Australia Adelaide W.H. Wylie- Clovelly Park X 5) Australia Finsbury Chrysler Australia X X 6) Australia Lonsdale Chrysler Australia X 7) Brazil Sao Paulo Chrysler Corp. do Brazil-Sao Bernardo do Campo X X 8) Brazil Sao Paulo Chrysler Corp. do Brazil-Sao Bernardo do Campo X X 9) Colombia Bogata Chrysler Colmotores X 10) England Baginton Chrysler United Kingdom X 11) England Birmingham Chrysler U.K.- Hills Precision Die Casting X 12) England Coventry Chrysler U.K. -Hills Precision Plastics X 13) England Coventry Chrysler U.K.-Ryton X 14) England Coventry Chrysler U.K. -Stoke X 15) England Dunstable Chrysler U . K. -Dunstable X 130 Exhibit B-l (continued) Purpose Country City Name Manuf acturing--Assembly 16) England Lu ton Chrysler U.K.- Luton X 17) England Maidstone Chrysler U.K.- Tilling-Stevens X 18) France Bondy Chrysler France Foundries X 19) France Dompierre- Chrysler France sur-Loire Foundries Sept-Fons X 20) France LaRochelle Chrysler France X 21) France Poissy Chrysler France X X 22) France Sul ly-sur- Chrysler France Loire Forges X 23) France Valencienne Chrysler France X 24) France Vieux-Conde Chrysler France X 25) Ireland Dublin Chrysler Ireland X 26) Japan Tokvo Mitsubishi Motors Corporation (MMC)* Headquarters 27) Japan Kawasaki MMC-Tokyo Works- Kawasaki Plant X X 28) Japan Kyoto MMC-Kyoto Works X 29) Japan Mizushima MMC -Mizushima Works X X 30) Japan Nagoya MMC-Nagoya Works X X 31) Japan Okazaki MMC-Technical Center X 32) Japan Tokyo MMC-Tokyo Works- Maruko Plant X X *Associated Company-15% ownership. 131 . Exhibit B-l (continued) Purpose Country City Name Manufacturing- -Assembly Malta Industrial Motors X 33) Mexico Mexico City Chrysler de Mexico X 34) Mexico Toluca Chrysler de Mexico X X 35) Morocco Casablanca S.O.M.A.C.A. * X 36) Mozambique Beira Soc . de Agencias Ltda X 37) Peru Lima Chrysler Peru X 38) Portugal Lisbon Representacoes Auto- moveis Chrysler S.A.R.L. X 39) Scotland Linwood Chrysler Scotland X X 40) S. Africa, Pretoria Chrysler South Africa X X Republic of 41) Spain Madrid Chrysler Espana X X 42) Turkey Istanbus Chrysler Sanayi X X 43) Venezuela Valencia Chrysler de Venezuela X *Associated Company-15% ownership. 132 . Exhibit B-2 Chrysler Corporation Common Market Registrations of Vehicles Produced in France and Great Britain From France 1 From Great Britain 2 West Germany 54 , 512 184 Belgium and Luxembourg 24 ,442 1868 Denmark 8,823 2965 France 191,111 493 Great Britain and Ireland 23,184 59 , 721 Italy 66,441 370 Netherlands 38,225 1501 Total 406,738 66,658 Source: L ' Argus de L' Automobile Et Locomotions "'"France also services Sweden, Portugal and Switzerland. 2 Great Britain also services Portugal, Switzerland and Venezuela 133 Exhibit B-3 Chrysler Corporation International Facilities in Each Country as Percent of Total Operations 1976 1975 1974 1973 1972 u . s . 61.7 61.5 61.6 61.2 60.6 Australia 2 . 7 2.7 2.7 2.7 3.2 Canada 6.3 6.2 5.6 5.6 5.7 France | England t 23.0 22.7 22.8 23.4 23.0 Spain J Other 6.3 6.9 7.3 7.1 7.5 Source: 10K report for 1976. 134 : Exhibit B-4 Chrysler Corporation Manufacturing Facilities and Car, Truck, and Coach Assembly Facilities (000s of square feet) In U.S. Outside U.S. Manufacturing Assembly Manufacturing Assembly 1976 31,517 19,686 16,134 13,615 1975 32,023 19,656 16,173 14,231 1974 31,083 19,401 16 ,330 13,598 1973 30 , 695 19,212 16,262 13,504 1972 29,973 18,765 16,319 13,467 Source 10K report for 1976. 135 Exhibit B-5 Chrysler Corporation Manufacturing Facilities by Country (in 000s of square feet) 1976 1975 1974 1973 1972 u. s. 31,517 32,023 31,023 30,695 29,973 Australia 1,137 1,134 1,119 1,132 1,325 Canada 2 ,654 2,604 2,321 2 , 347 2,361 France England 9,688 9 , 536 9,864 9,808 9,526 Spain Other 2 , 655 2,899 3,026 2,976 3,106 Source: Derived from Exhibit 3 and Exhibit 4 . 136 Exhibit B-6 Chrysler Corporation Manufacturing and Assembly Facilities by Country y Europe Manufacturing Manufacturing and Assembly Assembly Total England 6 0 2 8 France 6 1 0 7 Ireland 0 0 11 Portugal 0 0 11 Scotland 0 1 0 1 Spain 0 1 0 1 12 3 4 19 Source: World Trade Department, Motor Vehicles Manufacturers Assn., 1974. 137 i1 —1i1 1 — — 1 1 i CO Oh— o r- ON LD 00 CO CO o r- (0 id id i— *» \ \ \ oh Oh VD b b b O 1— 00 CO CN LD Europe Oh 'nT CO— o i I (0 B-7 -p id by Q o rH NO 1— O V£> 00 0) LD CN) 1 Exhibit o i— cu W P 0 LD — -p r- Oh CO • i 0 i i CN id in id CO S \ o \ V Oh— NO b IN b CN b— i o o 00 1 1 — i i m p O £ 0) u p b o in i i b b b id b b CD b tr> id id u id b i i b i— b 1— -p -P rH !' tn id a) p 0 id b p p 0 o CP pa Pm H cp in m I 138 Exhibit B-8 Chrysler Corporation Manufacturing and Assembly Facilities by Country , Latin America Manufacturing Manufacturing and Assembly Assembly Argentina 0 2 0 Brazil 0 2 0 Columbia 0 0 1 Mexico 0 1 1 Peru 0 0 1 Venezuela 0 0 1 0 5 4 Source: World Trade Department, Motor Vehicle Manufacturer's Assn. 139 Exhibit B-9 Chrysler Corporation Production by Country, Latin America 1976 1975 1974 1973 1972 Argentina 21,986 22 , 181 26,587 27,671 28,186 Brazil 27,831 24,472 31,526 36,841 18,043 Columbia 15,276 13,589 14,884 11,184 -- Mexico 56,642 65,032 62,839 47,864 38,267 Peru 11,031 10,603 10,201 9,897 9,897 Venezuela 43,355 37,763 28,570 21,805 18,846 Source: World Motor Vehicle Data and Chrysler' s 1976 Annual Report. 140 Exhibit B-10 Chrysler Corporation Manufacturing and Assembly Facilities by Country, Far East and Africa Manufacturing Manufacturing and Assembly Assembly Australia 2 2 0 New Zealand 0 0 1 South Africa 0 1 0 Turkey 0 1 0 Mozambique 0 0 1 Morocco _0 13 1 2 4 3 Source: World Trade Department, Motor Vehicle Manufacturer's Assn. Chrysler South Africa (Pty) Ltd. , was integrated with Illings, Ltd., a South African automobile company. The new corporation is called Sigma Motor Corporation (Pty) Ltd. Chrysler has a 24.9% share in this company. 141 Exhibit B-ll Chrysler Corporation Production by Country, Far East and Africa 1976 1975 1974 1973 1972 Japan 647,623 550,238 495,518 571,832 444,332 Australia 41,500 44,000 49,000 50,000 44,000 New Zealand n/a n/a n/a n/a n/a South n/a n/a n/a n/a n/a Africa Turkey n/a n/a n/a n/a n/a Mozambique 5,037 n/a n/a n/a n/a Morocco n/a 4,360 4,698 5,239 3,689 Source: World Motor Vehicle Data and Chrysler' s 1976 Annual Report. 142 3.3 SALES AND MARKETING ABROAD In 1976, Chrysler's sales totaled $15.5 billion. Of this, Chrysler earned $11.1 billion in the U.S. and Canada (i.e., $9.8 billion in the U.S. and $1.3 billion in Canada) and the remaining $4.4 billion abroad. While its foreign operations are small relative to General Motors' and Ford's foreign operations, they have expanded rather rapidly in the past two decades. Mexico and Canada, Chrysler's foreign sales increased over eight-fold between 1962 and 1971 -- from $187 million to $1.7 billion.'*" Chrysler's primary foreign markets are in Europe, Latin America and Australia. However, markets are presently being developed in Africa and the Far East. Of its total overseas sales, 75% are gained from its European operations and approximately 20% are gained from Australia and Latin America. 2 Exhibit C-l shows Chrysler's unit sales activities for 1976 and 1975. Of unit sales totaling 3,130,307 in 1976, 66.4% were sold in the U.S. and Canada while 36.6% were sold abroad. Outside the U.S. and Canada, 75.9% of Chrysler's unit sales were in Europe, 11.4% were in South America, 7% were in the Far East, and 6% were in other locations. Clearly, "Chrysler and the World", Automotive Industries, July 1, 1971, p. 47. Information gained from personal interviews at Chrysler. 143 : Chrysler' s European operations dominate its overseas activities. This information is summarized in Exhibit C-2. Of the worldwide sales cited in Exhibits C-l and C-2 , certain countries maintain a majority of Chrysler 's foreign market share. Exhibit C-3 shows the countries in which Chrysler sells the largest number of motor vehicles (i.e., cars and trucks) as well as their total foreign market share. Note that England, France and Spain comprise over 74% of Chrysler 's sales abroad. Further information can be derived from Exhibits C-l through C-3 by showing the market share of these geographic locations accounted for by each major country. This information is summarized in Exhibit C-4 . The key messages of Exhibit C-4 are a) France accounts for over 70% of Chrysler 's total European sales; b) England, France and Spain total over 98% of all European sales; c) Mexico accounts for over 50% of the Latin American market; and, d) Australia accounts for over 77% of the Far Eastern and African markets. s . Overall, Chrysler has marketing operations in nineteen countries outside the U.S. and Canada. Each of these marketing units services only its domestic market. 1 In Europe, however, the operations have been consolidated under Chrysler International S.A. -- a Swiss subsidiary which was set up to increase the foreign sales of U.S. produced vehicles. 2 Currently, all European marketing units report to Chrysler International S.A. which, in turn, reports to the U.S. parent company. Exhibit C-5 details the foreign countries in which Chrysler has sub- sidiaries with marketing units. Some idea of the approximate size of Chrysler' overseas operations can be gained from the sales made in each of these countries. This information is summarized in Exhibit C-6. As expected. Western Europe dominates foreign sales with France, England, Spain and West Germany, holding the vast proportion of sales. In Latin America, Mexico and Venezuela hold majority portions of the market. Mitsubishi Motors Corporation sells in the U.S., but has no marketing outlets there. Rather, Chrysler sells Mitsubishi products through its own marketing outlets 2 Chrysler International S.A. also services Latin America. 145 . s Exhibit C-l Chrysler Corporation Unit Sales by Geographic Location* Location 1976 1975 U. S and Canada 2,077,561 1,608,462 Outside the U.S. and Canada 985,267 911,927 Europe 747 , 668 660,435 South America 112,257 107,714 Far East and Africa 68,997 77,095 *includes passenger vehicles and trucks. Source: Chrysler' Annual Report for 1976 4 Exhibit C-2 Chrysler Corporation Unit Sales Abroad by Geographic Location and Percentage of Total Unit Sales Abroad Units Units o o. Location 1976 o 1975 "o Europe 747,668 75.9 660,435 72 . South America 112,257 11.4 107,714 LI. 8 Far East and Africa 68,997 7.0 77,095 8 . 5 Other 56,345 5.7 66 ,683 7.3 Total Outside U.S. and Canada 985,267 100. 911,927 100. Source: Chrysler' s Annual Report for 1976. 147 : s 16 Exhibit C-3 C hrysler Corporation Unit Sales by Major Country and Percentage of Tot a 1 Unit Sales Abroad % of % of Country 1976 Fore ign Sales 1975 Foreign Sales Australia 53,241 5.4% 54,156 5 .9% England 126,257 12.8 156,573 17.2 France 526,640 53.5 438,866 48 . Mexico 56,345 5.7 63,273 6.9 Spain 81,931 8.3 78,029 8 . Other 140,853 14.3 121,032 13.3 Total Outside the U.A. and Canada 985,241 100. 911,929 100 . Source Chrysler ' Annual Report for 1976 148 Exhibit C-4 Chrysler Corporation Country Unit Sales as Percentage of Regional Unit Sales % of Sales Africa and Europe Latin Ameica Far East England 16.9 France 70.4 Spain 11.0 Other Europe 1.7 Mexico 50.2 Other Latin American Countries 49.8 Australia 77.2 Other African and Far East 22.8 100. 100. 100. Source: Chrysler' s Annual Report for 1976. Exhibit C-5 Chrysler Corporation Location and Owner & hip of Sa le s Sub sidi ari e s Abroad Country Ownership Status 1) Austria Wholly-owned - part of Chrysler International S.A. 2) Belgium Wholly-owned (76% by Chrysler, 24% by Chrysler France) 3) Denmark Wholly-owned (part of Chrysler International S.A.) 4) France 99.6% owned 5) Germany , West Wholly-owned (76% by Chrysler, 24% by Chrysler France) 6) Netherlands II II 7) Norway " " - part of Chrysler International S.A. 8) Spain 98.1% owned 9) Switzerland Wholly-owned-part of Chrysler International S.A. 10) United Wholly-owned - part of Chrysler Interna- Kingdom tional S.A. 11) Australia 96.9% owned by Chrysler overseas Capital Corporation 12) South Wholly-owned part of Chrysler Interna- Africa tional S.A. 13) Turkey 60% owned by Chrysler International S.A. 14) Argentina 96.2% owned by Chrysler International S.A. 15) Columbia 77.4% owned by Chrysler International S.A. 16) Mexico 99.3% owned. 150 Exhibit C-5 (continued) Country Ownership Status 17) Panama Wholly-owned - part of Chrysler International S.A. 18) Peru 83.2% owned by Chrysler International S.A. 19) Venezuela Wholly-owned. 20) Canada Wholly-owned. Source: Chrysler' s 10K Report for 1976. 151 a Exhibit C-6 Chrysler Corporation Unit Sales by Country Country Passenger Commercial Passenger Commerc Cars Vehicles Cars Vehicle Australia n/a n/a n/a n/a South Africa 15,921 10,255 12,783 2,781 Turkey n/a n/a n/a n/ Austria n/a n/a n/a n/a Belgium 27,178 n/a 26,032 n/a Denmark 11,835 655 8,848 808 France 191,111 12,506 132,396 10,460 Germany , W. 55,697 n/a 57,917 n/a Netherlands 39,579 3,468 42,932 2,744 Norway n/a n/a n/a n/a Spain 71,078 5,045 66,445 5,361 Switzerland 8,871 144 8 , 079 150 U.K. 82,905 20,132 95,436 13,441 Argentina n/a n/a n/a n/a Columbia n/a n/a n/a n/a Mexico 33,248 13,681 33,169 29,932 Panama n/a n/a n/a n/a Peru 1,042 n/a 1,039 n/a Venezuela 29,416 12,933 31,346 7,820 Source: World Motor Vehicle Data. 4. AMERICAN MOTORS CORPORATION 4.1 RF SEARCH , DEVELOPMENT , AND ENGINEERING ABROAD AMC does not perform any corporate sponsored RD&E activities abroad. All RD&E expenditures made public by AMC have been used to fund RD&E activities in the United States. These expenditures were: $38.5 million in 1976 $36.5 million in 1975 $35.3 million in 1974. Approximately 90% of these expenditures are for engineering and design activities according to one source. As far as non-consolidated activities are con- cerned, one AMC manager noted that affiliated production and assembly companies have performed significant RD&E work only in Mexico and Korea. In both instances, RD&E work was aimed expressly at respective local markets and did not have any application for AMC ' s U.S. operations (see Exhibit A-l) . Also, minor RD&E work on AMC products was performed in Australia and South Africa, again to adapt the products to specific local environmental circum- stances. (See Exhibit A-2 for a summary of RD&E work at these foreign locations.) 153 1 1 1 o - 1 1 Cn Cr> G G G H G X G X •H -P P c CD G X X x (D •P x X X CD P X G CD N X G CM G CD •H -P *P G — — P X i 1 X i 1 X P 0 • G G 0 • G X X CD -P G G •P G -P CD o x X G O G 2 P CD p -p • P G P G • G G 0 G 0 0 G G —G Q-< *H g CD P Cl -P g i 1 P Qa m g CD G a g g G p P 0 G CD p P 0 G G cnIIX! 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Exhibit A-2 American Motors Corporation Types of RD&E Projects Performed Abroad Location Type of Project Mexico VAM: engineering work to adapt AMC engines to local pollution control requirements. No application in U.S. (started 1971, "ITU" unit), located at assembly plant. Korea to build and develop a unique "Jeep" for Korea that basically violates U.S. standards. No application for U.S. market. Australia strict seat belt regulations required sum^ special engineering ay licensee. No application to U.S. (non-af filiated company) South Africa: develop right hand drive for vehicles. No application for U.S. (non-af filiated company) Source: Company interviews. 135 . 4 . 2 PRODUCTION ABROAD AMC does not have any majority owned plants abroad. The company maintains a few affiliated companies however, only two affiliates assemble AMC products exclu- sively (Mexico and Venezuela) . Five affiliated companies assemble and/or manufacture AMC products under license with interests in other passenger car lines as well (Ar- gentina, Costa Rica, India, Korea, Venezuela). Also, AMC maintains licensing agreements in Spain and Japan where Jeep products are produced with 100% local content. In other locations abroad, AMC ' s production activities are carried out by independent dealer/assemblers with small volumes 156 — —' tl 1 . . ! 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CD d P p P — 03 d Vehicle Vehicle 0 1 1 E •H d •H a; d d > •H of to p p CD p d d d P d d d d d d a 0 rd m p p o 03 a, C0 CO - to Plants January, a W P E -Motor -Motor V H H d d CO d 0 N. d 03 i— P co CD 0 u (D to o d >i CD d 03 1 •H -p d d >1 >i d d d d — d 1 -p i— CD CD d N n p d 1 P d p p P to CD CD CD to to P (D o d p P d d d -r-> d d •H O o P d d p CD CD CD P d p P PI El Eh E-h D > > Eh C ft u d o co CN ro in in r- 00 CN CN (N (N CN CN CN 160 . 4.3 SALES AND MARKETING ABROAD AMC presently maintains only one fully-owned marketing unit abroad (Jeep Venezuela S.A.). However, affiliated companies can be considered marketing units in a large sense. (See Exhibit C-l). By and large, AMC depends on independent dis- tributors in each country for its marketing activities. At the end of 1977, AMC products were sold in more than 100 countries 161 1 1 1i1 —-1 11 1 1 11 . 1I CO CD CO O t) ft 43 40 43 2 G cu • Cl) CU cu to rt* -G cu — G G G ft CO p) >1 1— 43 43 G G G CU 43 1 CU 0) -P 4-) 4-> 1 Pj i— to 1 O CJ O ft > CU 0 X ft rQ • >i to • G • G X! -G X X 1 g i— >1 t>1 ft CJ 43 ft a ft O ft 0 >i ft >1 ft 0 1 — i t— 1 1 ft — to c G 1 (1) rH ft G ft G to G (0 tO to 43 X G 43 G 43 G CJ G G G G >i o tO ft ft cj a) fO O CU CJ CU CJ 2 ft O ft O G 0 O g 0 -P -G 0 -P 0 4-) o 1 i i i i — 0 •H —1 (0 — —1 G —1 G ft 0 ft O —1 *G to g o to *G •G •G •G 43 O O 43 c m a) X! 44 r4 44 44 ft 44 ft 44 CD 44 44 ft 0 0 to 43 G O ft 44 0 -G 0 ft 0 ft 43 0 43 0 CO *H G Q) to 44 tO 44 44 X Co G to G CO tO CD G tO G G C G G CU G G G G to g •H to -H > •H * G •G ’ G •G CO ft •G *G ft 4-1 i 4-) 4-1 . 1 • to G CD —1 0 G G c ft ft > Cu 0 C Co ft X G X •H X X G cu •G ft G G X G ft G X cu cu 0 CD OJ X ft c & ft < ft 2 C/3 > 2 CJ 43 p> G G G 0 G G CJ a G G •H G ft ft •h i— i— X •H i— ft ft CU CD G X G 0 G G CJ G G G G G G CJ N N 0 CU X 4-) X ft CD •H CD CD X CO to CO to 43 G X G G G G O O G 0 cu CD CD < < CJ CJ H ft 2 > > ^ ^ N , , 1 1 04 ro in 00 03 162 4i • cn -P >1 H 3 • 3 3 cn 3 a, 0) •P 3 Corporation g o P O <1) O -P -P cn 3 -P 0 TO 3 ft • a. 1 —i to 3 cO 0 3 0) P 3 TO O 3 TO < TO -P 3 cn 3 cO 3 O o •P cn o -P p 3 0 4-> P (continued) -P 0 0 3 3 a £1 • p P Q) cn o P P 5 u cn -P cO CD 3 cn -p cn -p cn > P C-l o a) 03 TO 3 P 0 g U O CD 4-1 •P 3 03 -P -P 0 2 U 3 -P 3 S CD cO *p a, TO N 3 Exhibit i 3 CD CD £ 3 O t) a, cO 3 "P CD CJi Cu P TO P g a) 3 0 0 g •H u <: CD cn cn 3 Q) • • 0 £ CD P -P o CD p g -P 3 3 3 0 2 OQ CO —3 i 3 1 0 CD •P 3 P N 3 CD O 3 O a; 31 > o rH 163 PART TWO AGGREGATED DATA ON THE MULTINATIONAL DIFFUSION OF PRODUCTION AND SALES OPERATIONS OF THE GENERAL MOTORS CORPORATION, FORD MOTOR COMPANY, AND CHRYSLER CORPORATION. 164 In Part Two, the data come from the databank of the Harvard Business School's Multinational Enterprise Project. Special programs were written to access the data for General Motors, Ford, and Chrysler Corporation and to format the data for variables related to principal activity, location, size, ownership, markets, etc. AMC is omitted since its multinational diffusion is considerably limited, especially relative to the other three U.S. automotive producers. In every exhibit, the data represent the number of foreign subsidiaries for various variables. For example, Exhibit 1 of Part Two shows the number of foreign subsidiaries "alive" (still operating) in 1976 for several different activities (manufacturing, sales, etc.) The term "latest" refers to 1976. The term "at entry" refers to when subsidiaries joined their respective multinational systems. The term "existed" refers to when subsidiaries left the multinational system. The term "other" refers generally to non- manufacturing and non-sales subsidiaries that are essentially financial subsidiaries or subsidiaries established for parts distribution and warehousing. The term "unknown" refers mainly to extremely small sales subsidiaries with sales of less than $1 million, according to the Harvard Project's data coordinator. 165 Finally, please note that subsidiaries under the R&D category register zero in all exhibits of Part Two. The zero result means no subsidiary has been created or acquired abroad whose sole or primary purpose is to perform research and development. This conforms with our findings discussed in the Report on the Evaluation of R&D Abroad (Report #2). Separate subsidiaries have not been formed by the major U.S. automotive producer, though U.S. multi- nationsls in other industries have created them, for R&D purposes. However, other data from our research and the HBS databank show R&D has been performed abroad within (and secondary to) subsidiaries established primarily for manufacturing purposes. 166 i CM h» r- fr- z e a) o x . 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( c ( 173 • I ' * < » * * T3 -P •H H£> rC wX V© r- OOOOO O O O O OOOOO OOOOO O O O o o o o *-» o c o o c o O O O O O C/O J O D O C7 D O O O O © o © o o © © — o © O O © o o © © o o o o —• o OO OOOOO OOOOO o OOOOO 3 a. 2 z. o c.- *-* CL «cr «r a < c? o r~\ CL. o o — tM 3 Q i. < zz < a 3 o 'X *3 w» > o 3 < IS3mJHCM EsJ 7- -Z -* — • •X wJ c a: u? b <*S c t- ll/ o a U3 c — W isvud TO —* CO IX Q 3 X* 3 X) X CO c < > o o X X’ _ X *X O .1 X b T c I. H <. 1/7 — < 15 7 2. — •— a «— 3 -4 X •-» — <* » f— f— X — x o <1L O X -» < •a * 3 W 3 CO •-» o V cc. 3 £ *-< i o —4 c f- 3 X w «* O CL — o UJ c •— xl V c c 174 ro -P •H •HX X w or^o^o o *-* o © o o o o *=r o o o o o cr fN IT r~ © r* © o © O© O ©C i O C- o - y> X- T 1ST — CJ r- f—> t j: .-r _d -x -a x »-*. X X J> < r- x. \J> i.- O — Uu — © *. — :. c. x -j: to l.: o tN ^ •r tr £ hi? O — —• -• — ru :n rs’ r>4 r>* r>i fV M U © O' o* O' ( ( 17 5 *1 • « o Ixj o o o wr- © o 0*000 — «© O O' fSHHOOlfl o o t- r- r- r- X ti2 * *j oo —"C (*i o n ^ ~ \c cx "b ' -X (N fN (X ^ f*** [\ m ffl r»> o r— sfiinrx— H 09 rn fS /A •-» c h • Exhibit 4 Financial Statistics 2 2 O O O O CD (7> ^ o o o o co ^ \f) oo^ooao O' i/> in 1976 z (?» O' U"> O' O' LD O' O' iTi 2ic 2 CL lt. «4 o ^ (S ^ «n cx O O NCC m cx CM a] -a ^ CX fX X H LATEST O AT STATISTICS P" co cx •* m »o —• r*- ^ o to o» oo nO o fl M h O ® «0 U3 «-•«-( t-t x o *-« c •* #•» tx m © *-• *3< CO I FINANCIAL oI oooooo oo oocooo oo oooooo oo 41 X u «s Lx, ^ x v a ac ^ ex X- cr cs r- fx ^ cv rx o ~i cv ex in ^rx o — 3. -J -J 2 -3 > -3 i O -3 J X © -3 X o • - —* •— 2 •«r o •-« • v~ ,r- — • 3 iO © “• 2* T— • — (Z r\ — 2 2 IT. •— O r* -* 3 CN 2 o to 3 — to O C; t~* Sl to to O X Ci r- 3 — to to O X O < a.- to * • O c Jj Lxi cl » 9 £. -3 is? — to • 9 O o -3 u> -J »- 9 2 > «- 2 «X t- ITj *- » s. 3 21 176 i Exhibit 5 Finance Category of Subsidiary by Country of Incorporation TOTAL O © O © r ^ ^ c —• © © o ©©©no e © © ~* c o cr © © c © © -« © cm CM © © O © © fM m © ® O *w C O ©©©CM© © C © ~* © O © © © © ©0^©<* UNKNOWN CM I100M © © © © m m o © CM © CM © O © o © © o o © © © © o © © © © o © © o rn GT O©©© © *^ ^ © © ^« © © O © o o © © © © © o © © ©©CO© © o © c © S25M-S100M CATEGORY ©©©e ^wcoo e © ~- © © © c © © © coco© ©©CO© ©©©©CM S10M-S25M FINANCE © © © © NWO oc COO©© © © © © c © © © © © ©©©CO ©©©©•* $1M>S10H (Sales) SIM © © © © CM©©© ©©©©© © © © c © © © © © 00©C© ©©©©CM LT < bJ cr 4 to X 4 z X a. u: c- x o *-> to X •OC © -3 4 o M z U- to H <-o 3 CL CL 4 CL tO <*3 4 < t»? tr t— fr- O w tx) •— >- 2 tO © LiJ © u f- u: CL z X CL c c- •? lx" z u *— K < x x a c- LL 4 o *— 4 *1 a x to H 4 X X Z U z o U) 4 Z H* •• »• •• M © 4 CL Li_ bJ to — o w C < < Cl -3 to to <4 4 4 © 4 © O -3 I Lx? 4 T 4- © o CD X O C © © 4 4 Ju LO »- c, «c © ( 177 ( c f < » *1 * j Exhibit 5 continued ~- TOTAL o o © © © © © © o o o © © © cm ^ © m r- © © © © © O C O »-• N v£) UNKNOWN 8JO0M © o © © © o © © © © o © o © © © o © m m © o o o © © o © © cn m so n tH o GT O © © © © © © © © © © © O © © m o —• © © © © © © © © O O © © fN © — © 825M-8100M category o © © © o © © © © © © o © © o o © o ©o©©© ©©©©© © © © © 810M-S25M finance © © © © o © © ©©©©«-• ^ © © © © © © © © © © © ~- CM CM © © © (Sales) 1M 8 ~* © © O © — © © © © ©©©©© ~4 © © © © © © © © © © © C -4 « mo LT < © © CO O ws X X co © © c C »-• f- CO «r <«X CO CO w X CL CL w w > Q < z z *-4 o lx Lx LxJ c z u © «c u fr— C H- (WEST, >- X X 40 40 O Z t- z «* M < >- >• *-4 z © 0L s- f- o o u 9 Z ZJ QL *— © © a a •a c t- UJ Lx Z z »£ 40 *L u: CO ’a} < O X X w < rr 3 Z c Exhibit 5 continued v£> CD « «-• TOTAL, ^ yfi O O CM CN O O O O W (M OD O O O © © © — ^* O © © CM »* © © O © tf> CM fM (M CM • in ^ © O © © O O C ^ m c © © © c o — — —* o o o oooo© UNKNOWN 8100M (MOOinO ©OOOO ©OOO—I cm o © o ooooo ooooo ooooo GT C CM ^ m CM © CM O O O © © CM ^* © c —• c © © ooooo ooooo — o o c o $25M-«J00M category O NWHO ooooo 0 0 — 0 ^ ooooo ooooo ooooo ooooo I10M-I25M INANCE Sales^. © © © CM © ooooo © © © © CM ooooo ooooo oooo— ooooo ( I1M-J10M 1M $ C O ON- ooooo ooooo o — o o c o o c c o ooooo ooooo LT T -3- o — C ac CO 179 < • « Exhibit 5 continued —• TOTAL — o o o o ooooo o o o o ooooo — c>* o o o o © o — o o o o — ©©GO OOOOO OOOOO OOOOO OOOiOC O O CN © © -40000 UNKNOWN 8100M ooooo ooooo ooooo ooooo ooooo ooooo ooooo GT OOOOO OCOOO OOOOO OOOOO 0-4000 ooooo ooooo 825M-JJ00M CATEGORY OOOOO OOOOO 00-400 OOOOO OOOOO ooooo ooooo 910M-S25M FINANCE OOOOO OOOOO OOOOO OOOOO -40000 00—00 ooooo I1M-810M M1 $ OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO ooooo LT o < to 4t t— Z s u z • u X w3 a UJ X o a 41 to «r H c X L_ 2 H UJ J • >• 1-4 -s X uu X »- X Z to U- a cc H- c c Cl >* o — 4t 41 4 to X • F-> tO z z bJ z z X *4 u 03 z Z a. 4l 41 X o Z X < to UJ z H U2 w 3 C 180 • •» • 4 i Exhibit 5 continued TOTAL oooco ooooo ooooo ooooo © o © •-• o ooo©*-* ©ooo© © © © o o ooooo © © © © o © c © o o o © o -^ © ooooo ooooo UNKNOWN I100M © © © © © ©ooo© © © © © o o o o © © ooooo ©ooo© ©ooo© GT ©coo© ooooo ooooo ooooo ooooo ocoo © © © © © J23M-I100M CATEGORY ooooo oooco ooooo ooooo ooooo ooooo ooooo *10M-«23M FINANCE OM 1 ooooo ooooo ooooo ooooo ooooo ooooo oooco 1M»( 1 (Sales) »1M ooooo ooooo oocoo ooooo ooooo oocoo ooooo LiT < < to < C 2 < 2 3 2 3' — PR CL x -tt 3 vo CD «• o# vO r»* CD © © o» ** IT* *£) r* s © © © © in O o o m 828 029 o o o o © O o O o © o o o o o o mm — mm «-* m~ •-* •— fN ex rs* ( 181 c f • 1 Exhibit 5 continued CM TOTAL OOOOO OOOCOO OOOOO © © C © © © © © CM ©©>©•<© 0^000 OOOOO 000-^0 ooooo ooc^c oooocj © cm © © © ooooo UNKNOWN 8100M OOOOO ooooo ooooo ooooo ooooo © CM © © © ooooo GT 100M ooooo ooooo ooooo OOOOO OOOOO © Oi © © ooooo S25M-S CATEGORY ooooo ooooo ooooo © © © -< © ooooo cooco 0^000 *10M»$25M FINANCE OOOOO © © O •« © ooooo ooooo ooooo ooooo ooooo SSM-SlOM (Sales) SIM ooooo ooooo OOOOO OOOOO OOOOO OPMOOO ooooo LT z M 2: o *-• «r cr 4 o 2 to c 1- o O 5: < z bJ z CO and U) O ar o 2 CM X X >• z «E • at Z j: >• w w f- H a C f- Ui o a CO O - — a 3 t- U) O X ir Cj- CL •Ji 3 u < c o CALEDONIA 2 Z < o 2 a. ( t ( 182 I l « Exhibit 5 continued J H rn O O O O O \ 3T O oocom coooo 2 36 o o ooooo ooooo t-* z o o oooco V >- z tx m O CM o « u H*< z U lT> CM c ^ o o o ooooo u « o • c o bu z o o o o o m o o o © « z (1) r— cn* w O 0^000 ooooo H o 2" to X X _»**> H* -t tO H z a => o >- 1x3 Vi Exhibit 5 continued TOTAL O O O O O* O — © © © © © © CM © © © © — © COOOO © O — © CM — "sT N OOOO C O CD O ^ O O OOOOJO © o o — o ooooo 00 — 0 ^ UNKNOWN — CM 8100M OOOO ro-^OOO — 00*00 OOOOO OOOOO OOOOO OOOO — GT OOOO G CM — O C 0—00 ooooo OOOOO OOOOO ooooro S25M-8100M CATEGORY OOOO —0—00 OOOO ooooo ooooo ooooo OOOOCM 810M-825M FINANCE oooo «**««*©©© ooooo ooooo ooooo coooo ooooo 81M-S10M (Assets) 81M oooo © *•* © © © ooooo ooooo OOOOO OOOOO ©©OOP* LT «r ix3 ac *— <** to X *s z (S3 a lx) o a — to a ( r r, r- • - 184 ( 1 t « i t 1 4 • * Exhibit 5 continued t- cs © © © © o © © © o o o o •*>©**© o* ooooo O O O P- wn sc ^ O 04 H* 3 o o o o o o o o o o o © O O © CN ^ O co ^ o o o o o o o o C* 'C z X z 3 z o o o o o o o o o o o © © © © o o o o ro *** o c o o o OOOOO ^ fN o O 3t-* oz: o o c © © o o o o o ooooo moo©-* o o o o o © © O © < — 42 O O • >* X X O CM 3 « u E-*< z o m 04 ooooo ooooo ooooo O Or-w^ ooooo occco «-* •* ^* «* © Uj 0 U I 2 X < o 2 H «» w +J 2 0)o ooooo ooooo © © © © — — ooco OOCOO o o o — cn *-* o* © ~ o <3:1? OOOOO — o c o © OOOOO ~ © C 04 OOOOO © © © — ~ © O CN 04 © o < *r 3 CO O w X X CO J j O o *-« 1- to Exhibit 5 continued TOTAL O CM CM © © ©Or^CMOD vOODOOO ©0©^»-» «-•©©© CM —• O O O © Of) o © cm © © ©oow UNKNOWN -^ S100M o © © o o © © o o © o © © © —• Q O O © O © © © © © © © © O © © © O GT ~ —•©*«* © © *-• © C O © © © © © CM © o © © o o © © © © o o © © © o © o © 825M-S1O0M CATEGORY C CM —* CM —> ©COO© C © CM ^ o m © © o © © © © © ©oooo ooooo S10M-S25M FINANCE —• <~> »- — CM ©—•©©© © O ~« © CM © —« © © o © © © © © © © © © ~ © © © © © S1M-S10M lAbbetb; SIM © © © r* ~ © © © © c ©oco© —> c © © o © © © © © oco© © © © © © © LT 2 *r O 2 •-* t- o x: to < >• to 3 b) o Exhibit 5 continued TOTAL **000© O © © © O ©0-^00 ooooo - - (N o o ©cmo© © © © © *-• C © © © OCO©© O © O O © ©©©©© © O (M o c C C 04 O © o c © UNKNOWN 8100M © © © © © © © © © o ©ooo© © o o © © © © © o © oo©oc ooooo GT © © © © © o © © © o © o © o © © o © © © © ~ © © © ©OCO© ooooo 825M-8100M CATEGORY ©COO© ©OCO© © O ~* © © ooooo c © © o c ©ooo© ooooo $10M-925M FINANCE ©c©o© ©coco ©©©©© ooooo — coo© ©©—•CO c © © © c 8JM-S10M (Assets) lM 8 ©co©o CO©©© ooooo ooooo ©cooo coco ©ooo© LT z o «rf -X a o W 187 c c < A Exhibit 5 continued TOTAL o o o o o ooooo ooooo ooooo c o o «~ © © c © © ^ © © © © © ooooo ooooo ooooo OOOOO ©00 — 0 ooooo ooooo UNKNOWN 8100M ooooo ooooo ooooo ooooo ooooo ooooo ooooo GT OOOOO OOOOO ooooo ooooo ooooo ooooo ooooo 825M-8100M category ooooo ooooo ooooo ooooo ooooo ooooo ooooo 810M-825M finance ooooo ooooo ooooo ooooo ooooo coco — ooooo $1H-810M (Assets) SIN ooooo ooooo ooooo oooo ooooo ooooo ooooo LT c < w < 2 *z z x i *3 «r cn X X H H H h H lO C/3 u © o cc z? PEPUBL 2 a 1/3 W w— z z w o >* UJ C a) *-* < X «r Li3 F- a 2 :* 21 b. X a l/D u o HUE H O o C *1 to u. o «t 2 M .. M •• Z t/3 < Z X — 2 — Exhibit 5 continued TOTAL OOOOO COOCMO oocoo 0 0 0 0*0 O O O O CM o o o — o o — o o o OOOOO 0 0 0—0 oocoo ©00 — 0 OOOOCM OCMOOO OOOOO UNKNOWN $100M OOCOO OOOOO OOOOO OOOOO OOOOO OCMOOO OOOOO GT OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO $25M-$100M CATEGORY OOOOO OOOOO OOOOO OOOOO OOOOO C WC O OOOOO 910M-825M FINANCE OOOOO C O C — O OOOOO 0 0 0 — 0 OOOOO 0-000 0-000 IIM-9I0M (Assets) SIM O O O O OOOOO OOOOO OOOOO oocoo OCMOOO OC-OCO IT 2 z o «c *X er 189 « « r I Exhibit 5 continued *3* TOTAL, © © © TF © O © © O O O W OOOOO UNKNOWN 8100M © O © © © © © © © © GT © © © O O © © © © © 825M-I100M category © <*~ O © © OOOOO 810M-825M FINANCE OM 1 ©CNOO© CMOOOO 1M“$ (Assets) 8 © o c o — — © © © © c X to X X Q H F- -f to H- 2 X © o >* io3 10 «I c O X CL o Lai U z CO < §- 2 to to U2 CO Z a. *-« »-* X o © x Cl © o © X z o •— © © X ( 190 c c * « i •• i i » Exhibit 5 continued ~* aj» TOTAL o o o o h ^ ^ O © © © O C O N O O © © © O © © © O © © —• O 04 -a 04 ^ CO©© OC M m © CD C CD O O o © © —* o © O © Ti O © O © © © © © -* O *3 UNKNOWN CSJ S100M © © © o © ar <© o o ©oo*o© © © © © © ©oooo oooo© o © © © © GT © O O © CM ~a © O © o © -a © © © © © © o © © © C O © © © O © ©CO©—* S25M-S100M category © © o © cm ~* © © o o©c**o© © © o -« © ©CO©© ©©CO© ©COCO* S10M-S25M finance © © © © ^ « CM © © CM © O © O © © © © © © © © © © ©©CO© ©©©©CM S1M-S10M (Equity) SIM OOOO ^ rr> o © O © ~ © © c ©coo © © © © O © © © © © ©©©©CM LT •d u a: M at CO X al 2 X a b? c X U »-a CO a at 3 -3 < o fa 2 b- CO fr- M a. a at X CO at at az LJ a •— f- o w' Lxl -* »— > z lO © 3 © Li t Lx? X 2 X X a c C b? 2 Z b) a at X Ox CL O Lx) at O U) f- — at at X a to f- CM r~> ar 3D o ^4 ** CM m ar m M3 r- CD CT> © © CM m 191 c < < ' •> Exhibit 5 continued I <*> TOTAL eg © © o c o © © © © © © © m sD © © © © o © o © © c r- *n cm (M © o o © © o c © c o o o o o n tM o n m r* © © c © © ©©©*-•—• rv ^ UNKNOWN 8100M © o © © © © © © o © © © © © © © © O O CM © O O © O O © © O © 0«4CM0Q GT ©©COO o © c © © ©GOO© ^ O C N-i ©©GO© © © O © O ©CO©© 925W-8100M category ©©CO© © © o © © © © © o o •*©©•*•* © o © © o ©©©©»* —• *» — © o 810M-825M finance CM©©©© © © © © © © © © © © © — o © © © © ©©©©cm 81M-910M (Equity) SIM © © © © © CO©© © © © © — © © © © © © © © © c cm m cm © IT «ct < © © to o W I © to © © c c h- to C to to W X x a. > Q < 2 2 M u UJ U' u? © 2 o 2 «*X < f- «r H (WEST >- X ( 192 c c v « i Exhibit 5 continued < H C vfl O ’f © CM CM O © O C WN CD 00 O © © coo^^ ~- © © © CM ~- © o © © o m H 3 cm cm ro o cm © — oocmoo o o o m m o o o o c © —» o o o cm ^oooo Z ro XL2 13 X O O OOOOO OOOOO OOOOO © —• © O © ooooo ooooo ooooo 8- <3 -ii X o o c ooomo ooooo oooo—» — © o © o ooooo ooooo ooooo • >• X X o *« r*> «* 4 — rn — 0^000 o O —' O m V o o o ooooo ooooo ooooo >1 * 3 O1 W X C •- O ~ CM OOOOO O G CM •* — CO © © © OOOOO OCOCO OOOOO H J X o H H o XL to >4 CO O b> c -X -X a C, 2 F- 2 > u. (RUSSIA) 2 •- «0 -X o w a. < XL 2 J c o < MARINO o — * C- -T Cl C* Ui -t X <1 -I *-* CO >- f- >- A! c a. a. 2 © •-» WZuJZh c >• o 2 U.' »- X X C 2 O a C YUGOSLAVIA u ib < < ll! a. c -a: u ««. x 0-102 II «: a < O <1 «X -£ 2 X X J O. J 1x1 — u O'— -I C 'J O X X O -I ALGERIA PUMAfl »- 2 UJ M W Q. 2 ^ x J X 2 X a. < UJ M i c J 1*.’ ft X 2 X USSR la. u: a. 2 O >• *-• a. o *-i c o a c a. A J 2 D Ni aJ — O SAN 2 0^3^ U a. O *-» J i x 2 a. co uo ’-0 *c <1 o CJ C x X. Ul .D »*oi ^ »n \0 ® O' o — .m m r»> m A) ® o a o o « h 509 510 511 512 601 o o o o o *4 ^ «4 < rv CM CM o o o ooooo o ^ ^ ^ ^ ^ c ^ V ^ tn in m in in in in in ( c 193 « « i i » Exhibit 5 continued TOTAL o o © c ©coo© o o —• o o © © © © © - ts O O O © PO © O ~* © © © © ~» © © © © © © © © © O © C © © © © © O O © © UNKNOWN S100M © © o © o ©ooo© © © © © © o © o © © o o o © © © o © © o © © © © © GT © © © o © © © © © © © © © o o o © © © o ©cooc © o © © o © © © © © S25M-S100M category © o o © © © © © © © © © © © o © © o © c ©©ooo © © © © © © © © © © 810M.825H finance © © © © © © © © o © © o o o © © © © © © ~ © © © © © © © © © © © © © 81M-810M (Equity) 61« o c © © © c©©©© c © © © © ©©CO© O © © © e © ~ e © © © © © © LT z u < «r a Q 03 *r z z u Z U 31 -3 a UJ X a a «r H C X UJ 5 H lx. J » -» f (' l C 194 Exhibit 5 continued TOTAL OOOOO OOOOO OOOOO GOOOO O © O O o o © o —• ooooo ooooo ooooo ooooo ooooo © © o o ooooo ooooo UNKNOWN S100M ooooo ooooo ooooo ooooo ooooo ooooo ooooo GT o o o c o ooooo ooooo ooooo ooooo ooooo ooooo J25M-S100M category o c o c o ooooo ooooo ooooo ooooo ooooo ooooo S10M-925M finance ooooo ooooo ooooo ooooo ooooo o o o o ooooo 81M-S10M (Equity) SIM c o o c o ooooo ooooo ooooo ooooo ooooo o c c c o LT ^3 < < -I to < -S' Z 4 z X PR a: X •H to X X M ff H H t- to *- to o c o cn => 3 3 Z to a. to to 3 h K-l z z w a o >- UJ <1 C* jj W *C X < Liu fr- UJ AND a U u x .£ x u L. 3 X c •3 tc CL Ui u? u. o o c to b. o < < to 3 tO Z M •« M »• to < X CL rH z C 3 >» 3 a LI «* zz c- © -*x z *H 3 UJ -3 o >• X H U o to < r z o O TOME —1 «c •— Zj 3 3 3 3 X «a. <. c. O > c c u v*_' o CL «c X r* X — o o »—* Jft u o o 3 3 to IJ 3 * 3 *x X CL O X f— o Z UJ »• <1 t— X e> 2. a. o w w w w CL z O CO 3 3 Uj *- 3 o • o «d •—1 c. X z z a >* o u -a •a X D r— X RUANDA • • • • -C. UJ O f- X ZL u. z X 7 X 3 X X 2 *c r— 3 z to X 3 CM 0X0 AO 1- *«i H L* K s fM ?M La- a. z c 3 <. «X UJ o O UJ <1 3 < X 3 > UJ 3 O O S IM CM CM CM ik «x X 3C LJ uuu o o o IsJ Li o 3 O <3 PH JO -3 1. a X X z a. a Ui r- cm \T. r- cc o o CM rv •NT m nO r- ao o CM VO ^ o O o O o 828 829 o O o O o O o o o O O o o o o o •“4 •-* »-• «-• -i —* CM CM CM CM CM cm cm cm co o CD OD CD OD QD OD a> QD CD OD CD QD 00 QL CD CD OD OD OD ao CD ao CD OD CD <3D W OD at* CL or od 195 c * < » » i * • Exhibit 5 continued TOTAL OOOOO OOOCiC ooooo ooooio oooor* o cr o o o —* o o o OOOOO ooo^o ooooo © © o ~ o © © O © CM o#no^o ooooo UNKNOWN cm © © SlOQM OOOOO OOOOO OOOOO OOOOO OOOOO © © ooooo GT ooooo OOOOO OOOOO ooooo ooooo ooooo OOOOO S25M-S100M category ooooo ooooo ooooo ooooo ooooo ooooo ooooo S10M-825M finance coooo ooooo ooooo ooo^o ooooo o«-«ooo o o c © S1M-S10M (Equity) SJM ooooo 000^0 oocco ooo OCOOC OfnCOC ooooo LT 3 < z c n* «r <• cr < c to o b- M 03 O o 2; X 2 tO AND «» U2 w 2: o *2 «X 2 CM X X >• 2 .J • -J 3 £ > w w t— I— X C *- b c CL 10 o f— H W a o t— (x2 o a o U c to Exhibit 5 continued J *X H o ^ c © ^ rooooo o H :*O ooocro OOOOO Z 2 O X o © OOOOO OOOOO H O o c OOOOO OOOOO I >• X O CM u « u H c £ u u-> CM OOOOO OOOOO u «» u • ^ o cm©©© OOOOO Pi>i7 •H 1 WtJ u c •* © © <=> m © © © © J O ¥ to X X f—i o fc— t- <. CO (— z OL o o > X CO •i o o X a c U Uj z CO «a f- z CO CO u w w CO 2 X uJ X 3 * X 3 o z X X z c u O o X < -I X o X © >• c <1 2 Z U) r— x: o — 'O r- X » »— X o z < Z «*> U) CO u: 3 o >• X o *— Ui 2 X X X co f- t- > > 3C u o CM m in nO OD o o o CM CM CM CM CM CM CM CM m o O O £> © a* © O O o o r 197 c c mr © v£> r* O' CM cn o ^ a> r* TOTAL Exhibit 6 Total Subsidiaries by Principal Activity and the Number UNKNOWN of Employees in 1976 \0 o O O O ^ >10000 m © © g o m 5001-10000 © © o ** n* 1001-5000 ^> i 501-1000 © « » © O' © r- «h© r- 101-500 I- o - ^ o w 0.100 >• U X H 4 I • Z I m u. cw a o j > 3 yuz*t *~i 2" c* 3 X fe t* I- •« < * o U X 11(0 ODH | -t » » • ( 198 c c • Exhibit 7 Exhibit 7A Total Subsidiaries by Total Subsidiaries by P rincipal Activity and Principal Activity and P ercentage of Ownership Percentage of Ownership a t Entry in 1976 J CD O ON 2 o O' O O rn r- O' O in o o oc o 2iC 3 3 o C* o o Nm o o> o ro w m m ^ NN O CD ^ 04 t ft CM «o O£> a o cr •H •H x; W w M n <*» 0) 0) C m o o ~ c O ^ (M O 'f O' CM Cb CM £ e 0 O m tn 4-1 m o o 0V 0\° * o o o r- O' c «r >• X 7* u ft ft U T — • ft « •J I-* < ft t i , a- C- t/* a. -* > 73 ZtL O < «•* -* u.' '-k- o _ i*J fr~ 3 ” f- — — r» iC w. t: 2 O < « t- 2 e— L7 «£ •a c— «4 CL to O 3 ft 4 3. a CC o o ft X 199 • « i • •1 « « i Exhibit 8 Latest Ownership of Subsidiary by Country of Incorporation -3 o o o o y* ** r+t o —« o o o O O O CM O o o c o o o o c o o o <1 cm IHO I-* z o OOOO 'fiftO-O o o o © ooooo 0 0 0^0 OOOOO O O —« O CM z CM 2 Z> odP c. OOOO CMf^-e^O OOW>GO OOOCMO ooooo ooooo ooooo av I/) OOOO CNO^C ooooo ooooo ooooo ooooo o ooooo in OOOO •* © © O O ooooo ooooo ooooo ooooo ooooo o in O' c o o o © © © © ~ V ooooo ooooo ooooo ooooo ooooo I ( A -X «0 X z CD o a u H lO cr -X X L z u. CO C—i M © CL CL i.fSTfCR FUROPC A *t •i c b. X H 1- o w Cal ASIA ON o u t- u a -) • z CL X l z u: *— f- «t S' CL a. c Lx c la) «x < CL CL tO X X Z u Z Q 1x3 < 3 •— o JL a. jj tO M to w O *— *r CL J to O -2 c a. o CM -n in sn y- OD cr* c. o CM no •?. in m vD r*- OD r> o CM rr m >o y* CD OS o o O o o o o o o o o o o O o o o O C- O o wm •-» — *4 «** o — — •* »* •- ^4 — — (N CM CM CM CM CM CM CM CM CM CM CM CM CM CM CM CM CM CM CM CM r 200 inn r » * » • • * * » Exhibit 8 continued *3 CM O C O O o © © c o o c c m vO o o m o o o o o OOOi^r^ IT M ^ ^ < CM O e* z O OOOOC OOOOO O O O O ^ O N ^ O © O O O *-• O^fn^O z OOOOO ^ itz x o<#> c csoooo ^oooo o © c. o *-» t\ o ^ qd co ©ooo© © o o cm -<* O m O ^ *-» »H • vO O' If OOOOO OOOOO OOOOO (N O H o IT OOOOO OOOOO ^*-000 O' I m OOOOO OOOOO OOOOO OOOOC OOOOO OOOOO OOOOO mo © OOOOC OOOOO © O C © -< ^ O O O OOOOO O © O — O ococc I <1 4 X X to O X X CO J c c . »* f- to «r 201 » 1 ) Exhibit 8 continued J V «C xi O ^ ONNOO C O n (\ OD vCODOOO O O O —• «-M O O © (N *-« O O © O z o O —• -**$»»- OOfMOO ©©©on* cm o © © © © o -*©©©•* ooooo * 2 => odP o w ^ o o o g c ow n m c o c ooooo © © © c —« ococo O' in o *-» 0^000 0000^-4 ~* © o © o o o o o © ooooo © ooooo o o o o ooooo o o o o ooooo ooooo o ooooo ooooo in df> © 0 0 0-^0 o c o o o ooooo ocooc ooooo ooooo -*cooo B -* oi ^ m © o «_ n# Oi w n vO r- CD O'- 406 407 406 409 410 o O o o o o O O o 510 511 512 601 m \r> in in in in in in in 202 < > « * » * « »« Exhibit 8 continued ~- 3 © © © © OOOOO O O —• O © OOOOO — CN o o © o mo o o o © o < o H © © © © o ©ooo© ooooo ooooo oo^oc oorio© ^ o o o o 2 orfp o coooo ooooo ooooo ooooo —* o c o ooooo ooooo X• m c © c © cocoo ooooo ooooo ©*-»coo ooooo ooooo O' m d* ooooo ooooo ooooo ooooo ooooo ooooo ooooo o in O' ooooo ooooo oo-^oo ooooo ooooo c © — © © ooooo z CL a ^4 to -X z z lx z • u X 3 CL lx) X o X -t to >- < H o 2 U. X H* 3 3 • CL *— < 3 I 3 a h- £L z to 3 • fc- CL H o a H- >• c — «r Exhibit 8 continued 3 o o o c o OOOOO OOOOO OOOOO C O O -« O O O O O OOOOO *3. OE-* h 3 o OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO Z 3 o O OOOOO OOOOO OOOOO OOOOO OOO^O OCOO^» OOOOO \0 OS oin OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO in o OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO m O' OOOOO OOOOO o c o c o OOOOO OOOOO OOOOO OOOOO «r < to < Z < z 3 z PR a X 3 3 CO X £t 3 ff l-M 3 i- r— 3 to M tO O ZD O 00 3 3 3 >• 2 tc a tO to 3 »—i Z 2 w 3 a 3 X 3 Exhibit 8 continued OOCOO O O O 04 O OOOCO 000040 ocooo* © o o —« © © —» o © o ooooo ©oooo c © o o o © O © O OOOOOI 004000 ooooo o o ooooo COOOIO OOOOO OCOOO OOOOO OOiOCO © -^ O o o oI c* in ooooo ooooo ooooo o ooooo ooooo ooo^o ooooo • m OOOOO OOOOO OCOOO ONOwO ooooo c OOOOO OOOOO m O OOOOO OOCOO OCOOO ooooo ©ococ ornooo ooooo z z o •-4 «c < a «sr c z ir c o o O X z tb z co O w X o •O LEONE u: C CL w o - (NORTH) (SOUTH) X o u. CL «n «* < o o < c z a. z < X l-K CL z o w u 4 zr M w c CO CO < - t-> l/J O «— c z X U.' 1C *— — «T SWAZILAND G OL o Ui a) 205 Exhibit 8 continued o-^foo^r r> o o o o < Of- fc-» O o o o o -* o o o o o 2 o0*> o o m o o ro CSOOOO ovD c#> oin 0^000 ooooo • m o ooooo ooooo ID dp c> occoo — oooo IMQ I X T t- a. o o ISLANDS 002: Z to < W w 1/3 Hebrides o 2 r i 2 ll PHILLJPINFS <. < < X PORTUGUESE Y SINGAPORE O «*X 2 2 Ui •-» "O — R— fr- UK < ? UU (O If r o«hu ne* H *- f- > :» 3 92b OD C* O 923 924 925 922 (N f i (N ro n ^ ^ ^ 206 f—I i-H LD LD ON 00 ON rH LT1 r- CM on Exhibit 9 Exited o o co oo o'! Total Subsidiaries by Priooir; r" ^ Markets in 197 6. Unknown CO I—I rH 00 O ON OM Other 00 r O —I OO 00 00 CTi O OM LD <0 on o Sales R&D O O O O O acturing OO i O —I ^ ^ ^ ON M ON Manuf 'O 207 1> » • » * » Exhibit 10 Total Subsidiaries by Geographic Location and Principal Markets in 1976 " - TOTAL ocoo r- 3 r*> o — O o o C C C CM O C © © — O OCOOO CO CM O O © © — — CM UNKNOWN oooo cm in cm co o cd o m © o O O O CM o o o o — o ©oooo o o — o r- — oooo • — ro cm 50% oooo 0—00© ooooo ooooo ooooo ooooo ooooo ©oooo > % 50 " % 0 — 10% o o o » c w o o moooo o c o c coco ooooc © © © 3 f"S —coo© < w XJ (X •c lO <4 22 33 ( ( r 208 . •* » * »< '*» . Exhibit 10 continued c «< b-> »-• O C- O O O O O C ifio ^ on OCOCO O C O r- 1/) M ^ z 3 o 2 ^ ^ o o o o ooooo* rr o ^ r- oooco o o o o o» in o o o n* m ^ (7t m o o cn o o 2 - n 3 o m OOOOO OOOOO OCOOO OOOOC OOOOO ^ fN £N C ^ O O — in o oc-oco A o3* xt I coooc oo o O TOO —* c o o o OOOOO C •- iTiT O O c C Z O '’O V to o %»# X X f- y~ to c < to to a > o -* < 7* •— •— C bi c z. u z «X < H* r— >* a >* o t- • 2- —4 1 — — 2 xa. • *• • r-^ cz r- wj — — 1. *o «r lit — >• J t_ f.M. 0 o < o — ;— ri — «4 1/ — c tj -a’ tr. .1 X :C X o •— /i «? a a «o to X) .x wJ ^ O O u) CL. *cr u. JJ o c> J I’*- tO 1 r. t C OJ m T." IT. X JO O « r* m 4iO *C r- CD o o o C. — - in -n — (n m / 4. r» 0° O fNt CN. CM fN N o* Oi o o o O o O 3 o o o c* o o COOOO O w> 4C> 41 r»> .*n < 4 U Oi CN f>* r>* rs cs 209 r * Exhibit 10 continued ' « •-« TUTAL C C n (\ a xCCCOCO o c o — — — o o o o» — ©O O C —I o o c o oocco o o c o UNKNOWN o o — cm so in o o o o o o — — —• o o o — — © o o o — © © o o oooco ooooo 50% O O O O — 0 — 030 o o o o o e © © © © © o o o o o o o o o 0 3 0 0 0 > % 0 b - %0 o o o o o 0 0 0 0 3 0 0 3 0 1 10* 3 0 (N c — —mo 0 03— CO COO O © © C C o o o c o 0—03 < AN BO h) Of'' U. 'Si K.XPOPT o < 2T > a.' a is, < .£ fr* A <1 C — 3 t/3 tC N AMO "> -3 210 « 4 a Exhibit 10 continued -3 O C O O C ~ - 0*00 O C ro C O c o o o oooco ooooo c o o o c o c o c c 3 2 o O O O O —* o rs c o oor^oo *-< o c o o ooooo ooooo ooooo ooooo 3.2 oc* in ooooo ooooo ooooo ooooo ooooo ooooo ooooo ozooo A «*0 iT> 1 e* oocoo o o o o c o o o o o C C - o — c o o V cr a. d «i d to < d 2 < rc A o «x) 7* • ,X. cr J O c tc bi w d CM O X (JH-Diipr, (oLHJVHEHv! •- <1 *— XT -T • C.' U 2 v <-• » ? c*. a’ to c z. F *_• •- •• *- »• yr "2. cr t/5 1 >» "S3 •c -• — .»-» C -T O -J. 'C- tV SJ d c UUUt J - - - r« > > J ,; •r «-* *r *r > — fN «o X r- "T *v ,r* o a ^ 62’ 62 2 IN C\ fN rN CN o o c O o o O 3 c* o o o o C‘ c C J o - O C W • c fc?i 62 !** CD JO CP s VD CD 6 O 'C «£> £) O r- r- r- r- r- OD a> oo CD «x* CO OD OD OD OD CD X (T X X X 211 • %« * » « Exhibit 10 continued »-* TOTAl, O O © O O O O C — o o © o o © o o © c © o © cn c O O C r>. O c © o c o* UNKNOWN o o o —* o O O O © o o o © o o o o o o © O O o o o o o o © O O 3 50% o o © c o © © o © o o © c © o © c © © o 0 3 0 0 0 ©OOC© 0 3 0 0© COOO© > o © o © c 3 © C 3 © 000 3 © 3 © 3 © c o *— l0%-50% 10% © C C 3 © © © o © < •-J Z CL 2 2 c cc ** a <1 <1 c. ( ( c c 212 0 « Ln Exhibit 10 continued TOTAL cao ho o^ooo c o c (COCO UNKNOWN o <3* o ooooo o o o m o o o o o m % 50 ooooo ooooo ooooo o o o o o > 0—0 o o ooooo ooooo o c o o o o 10% C — rn < < c* f- O to tQ *T z *-* 3 >-« X X <* CQ t— 2 (SOUTH) KXPUPT ffiOPTH) >- H K z. txi to < SAMOA a: X 3 c 3 b.' Ld O /- • H -5 o 3 Jj — *.Z to to u» *-_• «— Z •^5 < C a.' «£ CJL * X r> *— — >-* •— i 1 X a» _C 3 Q Z> o a v O -x. i/a —1 3 ai —* X a. “3 «T »* >* o ~z. < o- o «J o T X < i > 'D J- -U ua •a: o -J — a: j VIKINam ftLSIEHN -* T0'*NA O JL o 3 o -o X *—« X X a t/Jk'T«A •3 •3 r-« SALKS X < c O r 3 aJ X aJ X x ni — “3 JC w 5. j. i 11 .23 Cl X vO i O fs r^i rr vCi r*- a.- O C — n j". c 92v 2° 92^ 93) o — ^ ^ ^ o* r* r* cn i>* .>* o* 9 93 O O' ^ (7* !?» O' C7> O ^ O CT O' O' O' o* 213 * ** » \ • « «* » A £ Exhibit 11 Total Subsidiaries by Geographic Location and Principal Customer of Sales in 1976 2 o 2 oooo hjo ojroo aDornoo O O O CM O © © O *-• © OOOOO OO^OOD -« o o o o z —> rn CM O odP ITJ OOOO CM CM O O O OOOOO OOOOO OOOOO OOOOO ooooc oocoo A dP vn I c*> OOOO —• CM c o o © c —• © © OOOOO OOOOO OOOOO OOOOCM 00003 d* o OOOO rr. m CM C O moooo OOCOO COCOO OOOOO O C © C CM — c* o © c. V ( <1 to -X z; A H 0 (nil X X (DU o cr o to «x o R >— UPOPE u. to c-» © c- X £ westkr SiA < <4, < LJ CL o w fau H S methehoa T'lNAt, o o 6- Ld OL 2. X X T n A p Z LJ i— < X CL X o X' o CM V m v£ r* CD O' c o CM r*> M- *T .n X c CM in >r r** ac O' 22R 22u 220 221 o o o c* o c O o o 0* © © O O O © o •o c o — «-< «-4 *-* — — 1 4 — 220 u ( c < 214 • . i * .! . • Exhibit 11 continued f- wocoo o o g o m v£> G o o c o c ooomr- it r. >£) -J- O vC O -J O (N CV 3 C O CN — E- Z o *-tOOOO O O O C> CV C Wlfl® OOOOO O C O O -3* tM h ^ C O M IT. *t CD n O C (V O O c*o m ooooo ooooo ooo— oooco ooooo o co-jo oooco A J* »n I yf- OOOOO 0-0 00 0 OOOOC OOOOO OOCOC O W « J O —* O T o o o o r c c c o c c O O C O — c* o o o c CV CN -2 C V *o o w OQ f- H cn 215 0- < ) * • » # » Exhibit 11 continued TOTAL OCmfSOD sO QD o o c O O C — C O N — o o o o — c o o o ooooc c o — o o UNKNOWN O O —• rs o lO d* O O O OOO-*-* O O O -r-i ^OOOO WOOOO ooooo ooooo 50% OOOO—* OOOOC OOOOO OOOOO OOOOO OOOOO OOOOO 0 0 0 0 3 > % 5 % 3 o o c 0 — 000 OOOOO OOCOO OOOO OOOOO 0 0 0 3 0 0 3 0 0 3 1 10% fv o — — ooooo OOOO — ooooc* OOOO < d to Oman *—* t- U; to < < H PAHENT o «x d M *—< d a: zr !i> o «n d cc t-* d H* d c* X •> <5 '> ... <*. 'V* —i cr .T rs i r** _ i> : rs 'N in o r» X o _ fx »n X r- c* C* in r »- 2 621 o — —• — — IN O* rv O o o o o o o o mm o o o O o o o o — — — — — 51 6 u Tf IT* in m IT* in in m m in u> in m x> vO x> X) o 'C £> x> sD >o x» o vO vO *o ( C C ( ( 216 IC Exhibit 11 continued O t- oooco ^ « n o c oc-^oo o o c c c o o c o c c. o o ooooc ccooo c o H 3 Q COOOO r-*C oc¥> in ooooo ooooo ooooo ooooo ooooo oooco ooooo ooooo A 0* o4 ooooo oooco o o o o o o o o o o o o ooooc c c o o o c c ooooo V I < Q# < < 4 «0 A j LJ a «t o jsla FN x CH Ph 2 JL —• f— t— r— iO ti AFPICArl U V r i/) i o tu c.i) - r 217 t • 1 ' • Exhibit 11 continued C-3 t-c c o o — o o c c coooc ooooo G C O o ^ O O 0 —• O O O O O -s OOOOO OOOOO O O O w Q ooooo o o co *-• o cooocn z Z> o0* to ooooo ooooo ooooo ooooo ooooo ooooo ooooo ooooo A o coco ooooo cco~ c c o o c o o o ooooo c o o —» c V J X 2> r—t ?. :c a < 7 W+- o o. m X r~ .T- o* O — rvj m r 218 r i r ' I < t < « < *- * - » y Exhibit 11 continued J *x k-* o •> c — O o-*ooo OTtoc^r r^cooo o O ro 2 3 O 2 <*> O in o —< o ooooo o —• o o ooooo o 2. O 3 . Oi 0*o in ooooo ooooo ooooo ooooo i/> A cP 0 4.0 1 fl^P o o o o x> oof — o-toco c^-ooo o 'o o- o —* o o o o r- r- V F- H o x to X. r 7 W2 <»> ( 219 f Z' I I — i I tO p OO OO LD rH CM . I r-~ o f~ r—I CO E-i (M 00 TO Q) -P *H cr\ a- X r" H ^ Exhibit 12 Total Total Subsidiaries £ Classified by Principal o Activity and Sales to £ o o (Tt o Parents in 1976 iH oj — —— — £ D £ cn 0) I— rd CO Q lS (X tn £ P £ £ P r-~ CD vt< r~- ^r O rH (N td ip £ £ fO S -p ; M-l tp a) £ 113 tO . Cl, £ Q) >i °5 -P ^ o\o £ •H 0 O > LD 0 i— o\o °\° (0 •H S* I £ -p o\° -p HI Ej O o ^ ^ u (0 i— O in c o < CO V O Eh 220 220 copies 5 HE no. .A34 HE18.5 18 DOT . -T SC- 347271 m3D 8 F > co 9 ’ O O “ m 2> 5> o a O 35 > > p * to zj PENALTY co 9 3 1 O O c s o 5 > FOR £ OFFICIAL * h5 m o > * 3 PRIVATE s 5 O ® w BUSINESS 5 H 8 » o 5 > > USE. a s m co s z O (A S m »CO *300 > Z > e m o O X 13 Z > 9 O > z c b) 9 9 > o 9 CO S > | g -1 > 0 9 o5 9 m > m Z » CO 9 9 > •« • 2 X z A rc H» jj 9 V to to to A o f- oJ tc — >* _ <. ‘X «er -1 JZ <2 o o >- >- c o UL o I) r— c. < c o —v z_ jr •— L C1 r- — X V3 < o < < o o X X zr o> f. >* o r— o J-C z > Ll* X. o it >—• u —4 M u L3 r z. o .>3 CJ <. i- UI -a. -t ui cx. A LC1. l— < -rf '0 > -— < 7L ? *o •— o O' < IT Lz CN> z < X o o : u c \ r— IJI'I.AI.O l> m "* if.CM «-4 »— >- >- :- -* -^7. • • • r— T-* -3 -_i O tr LJ < -li — X o c r o < X