ABSTRACT

HOCH (another pseudonym) is a German parts manufacturer for the automobile and truck industries. It has manufacturing and sales operations in the United States, Brazil, United Kingdom, South Africa, Japan, India, and Eastern Europe. Customers in Europe (71% of sales) and North America (20% of sales) include Ford, DaimlerChrysler, and Volkswagen, which purchases 20% of the company’s total products worldwide. Recently, HOCH has tried to move into the Asian market, where its primary customers are NissanRenault and Toyota, but has found the process to be difficult and slow. Most of its design work is conducted in Europe, where 900 people are employed in research and development, and the United States (120 R&D engineers), although its Latin American and UK subsidiaries also design products for their local markets or adapt German designs to meet local needs (for example, it has 60 R&D personnel in Brazil and 15 in Mexico). Figure 9.1 depicts HOCH’s locations worldwide.