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Case
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Reference no. 404-103-1
Published by: China Europe International Business School
Published in: 2004
Length: 14 pages
Data source: Published sources

Abstract

In 1985, Peugeot established a joint venture in South China. Peugeot introduced its management system into the joint venture, controlled key decisions and helped Chinese employees learn French and Peugeot culture. Before 1992, the joint venture enjoyed glorious days. With the increase of competition, however, many problems emerged including unsuitable car designs, outdated car models, high prices, bad quality and poor service. Its production dropped so quickly that it almost ceased operation by 1996. Moreover, the serious cultural conflicts and interest fights dimmed the future of the joint venture. Finally, the Chinese partner lost patience.
Location:
Industry:
Size:
2,000 employees
Other setting(s):
11 years

About

Abstract

In 1985, Peugeot established a joint venture in South China. Peugeot introduced its management system into the joint venture, controlled key decisions and helped Chinese employees learn French and Peugeot culture. Before 1992, the joint venture enjoyed glorious days. With the increase of competition, however, many problems emerged including unsuitable car designs, outdated car models, high prices, bad quality and poor service. Its production dropped so quickly that it almost ceased operation by 1996. Moreover, the serious cultural conflicts and interest fights dimmed the future of the joint venture. Finally, the Chinese partner lost patience.

Settings

Location:
Industry:
Size:
2,000 employees
Other setting(s):
11 years

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