Interior JV: Teething Problems of a Manufacturing Operation in China

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Interior JV: Teething Problems of a Manufacturing Operation in China

Case

Reference no. 112-028-1

Subject category: Finance, Accounting and Control

Authors: Neale O'Connor (HKU Business School, The University of Hong Kong); Grace Loo (HKU Business School, The University of Hong Kong)

Published by: Asia Case Research Centre, The University of Hong Kong

Published in: 2012

Length: 6 pages

Data source: Published sources

Topics: China sourcing; Value chain analysis; Supply chain management; KPIs; Balanced scorecard; Production planning; Joint venture; Operations management; Performance improvement; Manufacturing; Suppliers' management

Share a link: https://casecent.re/p/109001

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Abstract

In 2006, European automotive supplier Interior Group and China-based China Textile established Interior JV, a joint venture in China to produce seat covers for automakers manufacturing in China. After a slow start, the joint venture began to secure orders and was moving towards a breakeven point. Nonetheless, it was still faced with teething problems, especially in product development time, internal quality and on-time delivery. Though Interior JV had adopted many processes that were used by its European mother company, operating in the foreign environment of an emerging market continued to pose challenges for the joint venture. Now Interior JV must address these problems in order to stay on top of the game.

Location:

China

Industry:

Automotive