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Panther Motors Car Manufacturing: Case Study

Autor:   •  April 13, 2016  •  Case Study  •  489 Words (2 Pages)  •  1,080 Views

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Panther Motors Car Manufacturing: Case Study

The Problem

A UK premium car brand manufacturer, Panther Motors, was in serious financial trouble after the global recession of 2007 - 2009. The brand is a subsidiary of a Multi-National Enterprise (MNE) car manufacturer based overseas. It has two factories (plants) in different parts of the UK. One of the two factories is threatened with closure as part of a cost rationalization program. However, before this happens, the MNE sells the brand and its assets into foreign ownership.  Obviously, new ownership causes some worry amongst the workers at the two UK factories, although the new owners have a considerable personal fortune and promise investment across the brand in order to make it competitive again.

  • new organization control all activities,


Historically, the Panther Motors has had a tradition of strong trade union organisation amongst workers in the two plants. However, because of the near closure of one of the two factories, the trade union endorsed the takeover and pledged to co-operate with the new owners in the interests of safeguarding the jobs of its members. Prior to the takeover, the company's future was threatened because of a shrinking share of the premium car market.  

The Strategy


In order to reverse the decline in sales, the new owners want to put in place a new strategy to make the business more successful. Firstly, the new owners decided to leave the existing British management structure intact and did not attempt to import foreign managers. However, the managers have been asked to institute the new strategy. For example, the new strategy calls for a removal of the centralised management approach and to improve employee, management and union dialogue to foster better relations and a more collaborative approach to problem solving. One of the reasons for this is that the new owners want the trade union to consider a 2 year pay freeze while it attempts to resurrect the business by making much needed investment. If agreement cannot be achieved, it raises the possibility that compulsory redundancies (job losses) may have to be made.

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