GM in China


Code : COM0027

Year :

Industry : Automobiles

Region : China

Teaching Note:Available

Structured Assignment :Available

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Abstract: In July 1994, when the Chinese authorities began the task of making China's automotive sector one of the country's strongest industries, the automobile market was opened to the foreign companies. But the access to the market came with a rider technology transfer to the local companies. General Motors (GM) entered the Chinese automotive market through joint ventures with seven Chinese companies.

Eventually GM got the permission to set up a manufacturing unit investing between $1 billion and $2 billion to manufacture mid-sized cars in China. But the company's Chinese odyssey has not been very smooth. It not only had to deal with fluctuating car demand but also with its joint venture partners who proved to be tough negotiators.

Despite the problems, GM continued to focus on China and the perseverance seemed to pay off with the company tripling its sales in 2003.

Pedagogical Objectives:

  • To discuss GM's operations in china and how the company managed its joint ventures in China
  • To discuss the competition in the Chinese car market.
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    Keywords : GM (General Motors); China; Automobiles; Market Entry Strategies Case Study; Chinese car market; Competition; Volkswagen; Toyota; Shanghai GM; Jinbei GM; Joint ventures in China; Mini vehicles

    Contents :
    The Chinese Market and the Competition
    GM's Joint Venture in China
    The Problems

    Case Introduction >>

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