Managing International Operations

Presented by

Prakash R. Mulchandani

My BackgroundMy Background

Came from India in 1960’s Education–M.S. (Chemical Engineering)–MBA (Finance)

Several assignments at Rockwell International

Spun off into Meritor Automotive Merged with Arvin Industries to form

ArvinMeritor

Scope of ResponsibilityScope of Responsibility

$3.5 billion in sales–Plus $300 million in joint venture sales

28 manufacturing plants–Located in nine countries

28,000 employees Union and non-union operations

PRODUCTS

Drive AxlesDrive AxlesDrive AxlesDrive Axles

Front (Steer) AxleFront (Steer) AxleFront (Steer) AxleFront (Steer) Axle

Foundation (Drum) BrakeFoundation (Drum) BrakeFoundation (Drum) BrakeFoundation (Drum) Brake

Air Disc BrakeAir Disc BrakeAir Disc BrakeAir Disc Brake

Transfer CaseTransfer CaseTransfer CaseTransfer Case

DrivelineDrivelineDrivelineDriveline

TransmissionTransmissionTransmissionTransmission

ClutchClutchClutchClutch

Anti-Lock Braking SystemAnti-Lock Braking SystemAnti-Lock Braking SystemAnti-Lock Braking System

Trailer AxleTrailer AxleTrailer AxleTrailer Axle

Trailer Air SuspensionTrailer Air SuspensionTrailer Air SuspensionTrailer Air Suspension

Locations

Domestic (U.S.) LocationsDomestic (U.S.) LocationsDomestic (U.S.) LocationsDomestic (U.S.) Locations

Newark, Ohio Kenton, Ohio Laurinburg, N.C. Asheville, N.C. York, S.C. Fairfield, Iowa Carrollton, Kentucky Oshkosh, Wisconsin Morristown, Tennessee

International SubsidiariesInternational SubsidiariesInternational SubsidiariesInternational Subsidiaries

Tilbury, Ontario Sao Paolo, Brazil Cameri, Italy Verona, Italy Wrexham, Wales Cwmbran, Wales Maudslay, England Dublin, Ireland

International Subsidiaries (cont)International Subsidiaries (cont)International Subsidiaries (cont)International Subsidiaries (cont)

Lindesberg, Sweden Barcelona, Spain Amsterdam, Netherlands Mitry-Mory, France St. Etienne, France Frankfurt, Germany Johannesburg, South Africa Melbourne, Australia

International Joint Ventures

International Joint Ventures

Izmir, Turkey Mysore, India Jinan, China Caxias do Sul, Brazil Friedrichshafen, Germany Brussels, Belgium Monterrey, Mexico

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Customers

Applications

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Competitors

Reasons for International OperationsReasons for International OperationsReasons for International OperationsReasons for International Operations

Access to World Markets Component Sourcing Global Orientation of Customers First to enter Key Markets Acquire Technology De-integration of OEM’s

Major IssuesMajor IssuesMajor IssuesMajor Issues

Management Time Transfer Pricing (Taxation/Import

Duties) Currency Risk Technology Give-away Cultural Differences

Major Issues (continued)Major Issues (continued)Major Issues (continued)Major Issues (continued)

Pressure to Invest in Related Ventures

Inadequate Due Diligence No Exit Strategy Legal Issues (Russian Trailer

Project) Personal Risk

HEADLINE: COPTER CRASHLANDS AT INFOSYS: AUTOMOTIVE MD, 2 DIRECTORS ESCAPE Star of Mysore Online

Mysore, Jan. 18 (MRS&ACP)- Automotive Axles Managing Director Baba M. Kalyani and two Directors as well as crew had a miraculous escape when the helicopter they were traveling in crash landed at the helipad of

Infosys in Hebbal Industrial Area this morning.It was around 10 am that the Deccan Airways helicopter carrying Kalyani, Directors Rakesh Sachdev and Lori Dohal {Larry Dowers} from Bangalore crashlanded in a corner of the helipad from a height of 20 ft while the

pilot was trying to land.Technical snag is said to be the cause for the mishap. The helicopter was found on the helipad lying on its left

side with its blades shattered. Pilot Captain Mehal and technician Devendrakumar, Sharma escaped unhurt.Automotive Axles MD and the two Directors were taken out by the fire fighting personnel of BEML who

rushed to the spot immediately on receiving the information. The Automotive Executives were to attend the company's Board meeting in Hongalli Industrial Area.

They were shifted to Apollo BGS Hospital where they are still being treated when we went to press. According to eyewitnesses, smoke was noticed in the helicopter after the mishap. "Fortunately the copter did

not catch fire," he added. Vijayanagar Police Sub-Inspector Girish and staff rushed to the spot. Later ACP Vijayakumar and DCP K.T. Balakrishna also visited the spot.

Questions?Questions?Questions?Questions?