DAF gambles on a strategic marriage
Article Abstract:
Dutch truck builder DAF's April 1987 acquisition of the Leyland Truck division of Britain's state-owned Rover Group may help DAF compete more equally with European truck giants such as Renault, Volvo, Daimler-Benz, and Iveco-Ford. Industry experts see the move as risky, since Leyland has been losing $2.4 million weekly. Slow economic growth, the collapse of export markets in the Middle East and Third World countries, over-capacity, and the need for new product development funds are all seen as making it difficult for smaller companies to survive. DAF doubled its size by purchasing Leyland, acquiring a new line of light vehicles to complement is heavy truck line, Leyland's modern and efficient main assembly plant, and the highly regarded Leyland design team. DAF posted nearly $16.7 million in net profits in 1986, up 66 percent over the previous year. DAF's self-confidence and determination may help it survive Europe's stagnant truck market.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1987
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Goulash capitalism
Article Abstract:
Hungary plans the most radical economic reforms in Eastern Europe. The first step toward the goal of a market-oriented economy by the early 1990s was the introduction of a personal income tax and a value added tax (VAT) on Jan 1, 1988. The strategy behind these taxes was to restrain domestic consumption, reduce imports and force Hungarian companies to find business in hard-currency markets. Other structural changes will include dismantling the central planning system and the creation of an independent banking system. Debate now concerns how to achieve the transition to a market economy without creating chaos. Foreign investment is being encouraged and rules for joint ventures are being relaxed.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1988
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A bold prescription for Europe
Article Abstract:
Former West Germany Chancellor Helmut Schmidt remains active in public affairs five years after leaving office, co-publishing the German weekly Die Zeit, publishing a best-selling book, and consulting privately with former and current world leaders. Schmidt urges European leaders to speed up the process of European integration, feeling that Europe is often prey to erratic and mistaken US economic and military policies. Schmidt recommends a joint German-French army which would be under French command. He supports a single European currency and a central European bank that would be modeled on the US Federal Reserve.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1988
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