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Case
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Reference no. 9-700-001
Published by: Harvard Business Publishing
Originally published in: 1999
Version: 25 March 2002

Abstract

Explores the development of the Chinese auto industry and of Shanghai Volkswagen (SVW), a successful joint venture in China. Established in 1984, SVW is a joint venture between Volkswagen of Germany and the Shanghai Automobile Industry Corp. (SAIC). One key element of SVW''s strategy to date has been to work closely with local suppliers, many of whom are controlled by SAIC. SVW is the leading auto producer in China, but the competitive landscape is changing rapidly, and SVW''s traditional strengths could prove to be impediments in the future.; Designed to explore the issues involved in establishing and managing a joint venture as it develops. Emphasizes the ways in which the relationship between partners changes through time.

About

Abstract

Explores the development of the Chinese auto industry and of Shanghai Volkswagen (SVW), a successful joint venture in China. Established in 1984, SVW is a joint venture between Volkswagen of Germany and the Shanghai Automobile Industry Corp. (SAIC). One key element of SVW''s strategy to date has been to work closely with local suppliers, many of whom are controlled by SAIC. SVW is the leading auto producer in China, but the competitive landscape is changing rapidly, and SVW''s traditional strengths could prove to be impediments in the future.; Designed to explore the issues involved in establishing and managing a joint venture as it develops. Emphasizes the ways in which the relationship between partners changes through time.

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