Product details

In July 1994, when the Chinese authorities began the task of making China''s automotive sector one of the country''s strongest industries, they opened up the market for foreign companies. But access to the market came with a rider - technology transfer to the local companies. General Motors (GM) entered the Chinese automotive market through joint ventures with seven Chinese companies. Eventually GM got permission to set up a manufacturing unit investing between US$1 billion and US$2 billion to manufacture mid-sized cars in China. But the company''s Chinese odyssey has not been very smooth. It not only had to deal with fluctuating car demand but also with its joint venture partners who proved to be tough negotiators. Despite the problems, GM continued to focus on China and the perseverance seemed to pay off with the company tripling its sales in 2003. The case provides a detailed account of GM''s operations in China and how the company managed its joint ventures in China. The competition in the Chinese car market is also highlighted in the case. A structured assignment ''304-290-4'' is available to accompany this case.