ABSTRACT
This chapter analyses the failure of the British motor industry to achieve a significant market share in western Europe. Distribution structure performance depends largely upon the degree of co–operation between members. In view of the British domestic distribution structure, it is not surprising that the early post–war export product channels were bases upon loosely affiliated agents who assumed the costs of financing shipments and inventories of cars and spares. The Volkswagen also had a lower price than the British competition. Volkswagen's advantages in product characteristics and price were reflects in the market. The rising personal disposable income levels and car sales, Europe is considers to be 'the outstanding potential market'. In response to continuing poor foreign sales and distribution structure performance, the corporation creates British Leyland International. The British occasionally had the product, in contrast to Volkswagen and several other rivals, never developed the type of distribution structure necessary to achieve a significant market share in western Europe.
