The Chinese Vehicles Industry is Driving West Prof. M. Fetscherin Prof. M. Sardy Rollins School Division of Worldwide Bu.


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The Chinese Automobile Industry is Driving West. Prof. M. Fetscherin. Prof. M. Sardy ... 2005 first Chinese auto organizations showed up in worldwide 500. SAIC with ...
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The Chinese Automobile Industry is Driving West Prof. M. Fetscherin Prof. M. Sardy Rollins College Department of International Business

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Chinese Cars Years Ago…

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… Today They Have Small Cars…

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… Sports Cars…

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… SUV and Sedans

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Agenda Introduction Players, power, organization First move going worldwide and difficulties Footprint Japanese or South Korean Chinese automobile creators and takers Strategic alternatives Conclusion

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Introduction 2005 first Chinese auto organizations showed up in worldwide 500 SAIC with deals USD 12.4 bn FAW with deals USD 14.5 bn Production of 6 million in 2006, > German Third biggest auto market Fragmented business sector 120 makers, 12 noteworthy Small nearby makers Large national with JV

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Players, Power… . 50 th commemoration, yet earliest stages Liberalization of exchange approach, import charges Key Players

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… and Partnership Two sorts of Chinese car organizations

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Production Chery generation

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Parallels to Japan and South Korea

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First Move Going Global Exporting presentation stage (PLC) In 2003, Honda produces autos to fare to Europe and Asian markets In 2005, 170,000 vehicles sent out Asia, Africa, South America, Europe Trucks (60%) Chinese local brands

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Key Challenges Currency hazard, import confinement Processes Lack of offers Distribution, and After deals Product Quality issue (e.g., wellbeing, environment guidelines) Brand How do clients esteem Chinese autos contrasted with contenders?

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Value Map EXAMPLES Some SUV

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Auto Makers and Takers Passenger auto deals versus Number JV Importance of JV? More JV, more deals? Significance of building own image?

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Brand Matrix Passenger auto deals (own image) versus JV Extracting deals under own image Matrix with 4 classifications Each particular attributes

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Example Rover SAIC has propelled its first own-image auto taking into account innovation from the ancient British carmaker Rover. The presentation of the "Roewe 750" (the name implies "glory and authority" in Chinese) will be founded on Rover 75 innovation obtained from BMW.

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Conclusions Domestically, China third greatest auto showcase Internationally, Chinese brands are sending out, in presentation stage PLC Quality issue can be illuminate Brand one key test Consumer recognition key Parallels to Japan and South Korea Independent more prone to trade soon

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Thank you

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