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Case
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Reference no. 305-246-1
Published by: China Europe International Business School
Published in: 2005

Abstract

This is the second of a three-case series (305-245-1 to 305-247-1). SAIC-Chery Automobile Corporation, with a history of only four years, had established itself as one of the most successful domestic brands in China?s fast growing home car market. Chery'?s birth was under the strong influence of Anhui Provincial and Wuhu Municipal Government. By involving SAIC, one of China'?s largest state-owned automotive group, as a ?nominal? but important shareholder, Chery obtained license from the Central Government to enter into the automobile manufacturing business booming in China. Thanks to a series of appropriate strategies, Chery'?s initial experiment seemed quite successful and brought Chery into the top list of China?s car makers. However, challenges followed as Chery was celebrating its initial success. Problems like fiercer competition and less market opportunities, accusation of infringing intellectual property, internal cultural conflicts and political criticism to the chairman were raised and needed to be dealt with. Thus, how Chery could keep its competitive advantage in the market became a key issue for top management.
Location:
Industry:
Size:
11 billion assets
Other setting(s):
2004

About

Abstract

This is the second of a three-case series (305-245-1 to 305-247-1). SAIC-Chery Automobile Corporation, with a history of only four years, had established itself as one of the most successful domestic brands in China?s fast growing home car market. Chery'?s birth was under the strong influence of Anhui Provincial and Wuhu Municipal Government. By involving SAIC, one of China'?s largest state-owned automotive group, as a ?nominal? but important shareholder, Chery obtained license from the Central Government to enter into the automobile manufacturing business booming in China. Thanks to a series of appropriate strategies, Chery'?s initial experiment seemed quite successful and brought Chery into the top list of China?s car makers. However, challenges followed as Chery was celebrating its initial success. Problems like fiercer competition and less market opportunities, accusation of infringing intellectual property, internal cultural conflicts and political criticism to the chairman were raised and needed to be dealt with. Thus, how Chery could keep its competitive advantage in the market became a key issue for top management.

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Location:
Industry:
Size:
11 billion assets
Other setting(s):
2004

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