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Chery Auto Success Story

In: Business and Management

Submitted By vramesh
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The Growth of Independent Chinese Automotive Companies

(Second Draft for Discussion)

Jianxi Luo

May 6, 2005 International Motor Vehicle Program, MIT

Index

1 Overview of Current Chinese Automotive Industry……………1 2 The Burgeoning Independent Chinese Auto Companies………9 3 Case Study: Chery Automobile Company………………………14
3.1 Introduction………………………………………………………… 14 3.2 Characteristic Analysis…………………………………………….. 18
3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 Technical Capabilities………………………………………………….18 Production Management……………………………………………….24 Product Characteristics……………………………………………….. 25 Intellectual Property…………………………………………………... 29 Exportation Strategies……………………………………………........33 Enterprise Culture…………………………………………………….. 36

3.3 Comparative Analysis ……………………………………………....36

4 Conclusions………………………………………………………. 42 References…………………………………………………………….47

1 Overview of Current Chinese Automotive Industry
China’s first automobile manufacturing base, FAW (First Automobile Works), was built 50 years ago. From then on for over 30 years, there was no big progress in the Chinese automotive industry on both production and technology sides. Production capacity was low, and technology was outdated. From the middle 1980’s, with the establishments of joint ventures, the Chinese automobile industry began to develop faster than before. So far, all of the world's major automakers, such as General Motors, Toyota, Ford, Volkswagen, DaimlerChrysler, Nissan-Renault, PSA Peugeot Citroen, Honda and BMW, have established joint ventures in China*. In particular, the joint ventures control about 90 percent of China's passenger car market.
The major players in the Chinese automotive industry

FAW SAIC Changan
Dongfeng
Guangzhou AIC Beijing AIC

GM Toyota Ford DaimlerChrysler VolksWagon PSA Hyduai Honda Nissian/Renault Fiat MAZDA BMW SUZUKI Kia

Nanjing AIC Brilliance...

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