Chery Auto's Success Story


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Case Details:

Case Code : BSTR377
Case Length : 13 Pages
Period : 2003-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Chery Auto
Industry : Automobile
Countries : China

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"They (Chery Auto) are so head-and-shoulders above anybody who ever broke into the car business. They know what they're doing, they're sophisticated, they're intelligent, they're hard-working and ambitious - every good quality you'd ever want to have."1

- Malcolm Bricklin, CEO and Founder, Visionary Vehicles LLC2, in February 2006.

Introduction

On October 30, 2009, JD Power Asia Pacific3 released its 'Report of 2009 China Initial Quality Study4' in which Chery Automobile Company Limited (Chery) topped the compact and premium car segments with its QQ3 and QQ6 models respectively. This was the first time that a Chinese brand had won the top spot in two market segments. The report showed that the initial car quality in China had improved by 14% indicating that the quality gap between the Chinese and global automobile brands were narrowing. Jin Yibo (Yibo), Spokesman of Chery, said, "This prize is another confirmation of Chery's commitment to independent innovation and the establishment of an international brand.

Sales volume will no longer be thought to be the only target. Now, Chery is in pursuit of core competitiveness and operational quality of the enterprise as a whole."5

Chery Auto's Success Story - Next Page>>


1] "Shanghai - It's the Last Thing the US Auto Industry Needs: Another Toyota Motor Corp," www.motortrader.com.my, February 22, 2006.
2] New York-based Visionary Vehicles LLC is an international automobile import and distributor company. It was renamed as V Cars LLC in mid-2008.
3] JD Power Asia Pacific is a subsidiary of JD Power and Associates. JD Power and Associates is a global market consulting company which focuses on research in the area of consumer behavior, product quality, and customer satisfaction. It was founded in 1968 and is headquartered in California.
4] The report was based on the responses of 12,038 owners of new cars purchased between October 2008 and June 2009. The report covers 127 models of 48 passenger car brands and the data was collected from 28 main cities of China between April and August 2009.
5] "Chery Leading Chinese Independent Brands to Surpass Global Quality," www.cheryinternational.com, October 08, 2009.


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