Case Study

Fiat and Peugeot's Sevelnord venture (A): Laying the foundations for a second success

18 pages
May 1996
Reference: IMD-3-0644

The SEVELNORD case series present the evolution of the relationship between two major European car manufacturers, Fiat and Peugeot, in their attempt to enter the growing market segment of “monospaces” (passenger minivans) in the early 1990s. The first case (A) describes a first joint venture set up between Fiat and Peugeot in 1978 to manufacture commercial vans and called SEVEL. It discusses the purpose, management structure and decision making processes as well as the performance over time. The case also presents the same type of information regarding the new joint venture SEVELNORD due to start operations in 1994. Students are thus able to draw some lessons from the first JV and speculate about the possible threats and opportunities affecting the second JV. This discussion offers a good background for further decisions concerning SEVELNORD. Note: It is also possible to use only the A and C cases, skipping the negotiation exercise.

Industry Analysis, European Strategy, Car
Field Research
© 1996
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