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Arvin Exhaust Thailand: Building An Asia...

Davis, Edward W., ...

Case

Arvin Exhaust Thailand: Building An Asian Supply Base

Davis, Edward W.; Wehrenberg, John W.; Moore, Sandon

OM-0977 | Published March 29, 2001 | 27 pages Case

Collection: Darden School of Business

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A U.S. automotive supplier follows a major customer to Asia, and forms a joint venture with a Thai company to build and operate a new manufacturing plant. Key parts are also sourced from the Thai partner's existing plant. The Asian currency crisis causes devaluation of the Thai currency as well as problems for the joint venture, requiring the restructuring of the joint venture and the resourcing of parts from another company. Issues in the case include the recovery of tooling and equipment from the joint-venture partner and cost analysis to determine the best sourcing alternative. An optional Excel template is available for use with this case.