Overview:
The American automaker Carco has formed a partnership with a German automaker. Montanwunderland, to form a new company called Carcowunderland. The American executives of Carcowunderland are faced with the task of not only negotiating the structure of the firm but the nature of industrial relations on the shop floor in Carcowunderland=s three plants (Plant A, B, and C) in Germany. A few nagging issues are slowing down the merger: (a) executives of Montanwunderland want Deutsche Bank to finance most of the deal and then be granted significant influence over the activities of the firm; (b) IG Metall wants Carcowunderland to be bound by a new collective bargaining agreement that reduces the work week from 38 to 32 hours; (c) the factory councils at Plants A and B want to phase in the use of JIT over ten years as opposed to Carcowunderland=s initial estimates of five years; the factory council at Plant C wants to speed up the use of JIT there; and (d) the German government wants Carcowunderland to participate in joint research and development programs administered by the university system that will require the American side of the company to share proprietary technology with its competitors in Germany. A lot of bargaining will be necessary to clear these hurdles and make the deal happen. Failure to make a deal, says the Wall Street Journal, will send share prices tumbling and get the stockholders very angry.
American executives:
Chief Executive Officer, Carco
Chief Financial Officer, Carco
Stockholders
German executives:
Chief Executive Officer, Montanwunderland
Chief Financial Officer, Montanwunderland
Chief Executive Officer, Deutsche Bank
German government:
Ministry of Economy official
Bundesbank official
University official
IG Metall
Autoindustry Director
Union rep, Plant A
Union rep, Plant B
Union rep, Plant C
Factory Councils
Council at Plant A
Council at Plant B
Council at Plant C