How Saminda and Erin collaborate from 1982-1995 , and became strangers.
Erin Motor Co. / Saminda Motor Co.
The joint venture between Erin and Saminda , which effectively lasted from 1982 to 1995, attracted widespread attention. Erin’s importance to Britain’s industrial heartland and place in a major global business were recognised, and it was hoped that collaboration could invigorate the product design and production management capabilities of an ailing national flagship. Although was thought to be a successful case at that moment , both Erin and Saminda ultimately failed to achieve their objectives after that.
Saminda , like other automotive companies, also came to the conclusion of firming a joint venture. At the moment, while Saminda’s cars enjoyed reputation for good quality and durability, the import restrictions limited its success it the European market. However, the European market was essential for the company’s global expansion. With the joint venture, Saminda could avoid the restrictions on the import quota by assembling cars locally, because these cars would be considered locally produced. Moreover, a local partner could assumedly offer a better insight of the market.
Indeed, both Saminda and Erin had something to deliver each other. Saminda had the capability in designing engines and gearboxes, where Erin had design specialist and the ability to fund the development activities. In addition, Saminda’s distribution network in Asia could be helpful for Erin’s products.
Erin’s excess capacity did enable Saminda to quickly increase the sales in the European market, and both Saminda and Erin did make money.
##The Seperation of both companies
The collabration for both companies lasted for 13 years , Erin at that time could not export it cars to Japan and termination would mean that Erin can now export , as Erin wanted to sell it own cars in Japan instead of rebadged Saminda , although the joint venture did make money untill 1990 , where it really didn’t . Erin think it’s not necessary to collaborate anymore.
#Why did Erin succeed where Saminda still fails in UK even today?
Erin had different thinking from Saminda when it develop in European market. Erin chose to establish its own engineering center while Saminda wanted alliance as a way to develop the European market. From the aspects mentioned above, it can be seem that Erin might have more chances to succeed where Saminda failed to reach its goals , is why Erin‘s way may work better than Saminda’s and can be seen from several aspects.
(Next would be cars where Erin and Saminda collaborate)