ABSTRACT
The Yom Kippur War and the OPEC oil embargo taught us in the auto industry that we really had become part of a world economy and that we were dependent on international relationships. The internationalization of the American car market meant that even the Big Three were going to need a network of overseas supply sources that could produce components at much lower cost than in unionized American factories. Cooperative engineering and marketing also became necessities. The new reality puts an emphasis on early detection of shifts in international tides. GM came to the realization very late, even though it was the first in the industry to do so. Crises born of adverse international events are among the least controllable a manager must face. They require foresight, insight, patience, and resources. Unfortunately, these qualities are always in short supply.
