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Analysis of the Dynamic Relationship Between the Emergence Of
Annals of Business Administrative Science 8 (2009) 21–42 Online ISSN 1347-4456 Print ISSN 1347-4464 Available at www.gbrc.jp ©2009 Global Business Research Center Analysis of the Dynamic Relationship between the Emergence of Independent Chinese Automobile Manufacturers and International Technology Transfer in China’s Auto Industry Zejian LI Manufacturing Management Research Center Faculty of Economics, the University of Tokyo E-mail: [email protected] Abstract: This paper examines the relationship between the emergence of independent Chinese automobile manufacturers (ICAMs) and International Technology Transfer. Many scholars indicate that the use of outside supplies is the sole reason for the high-speed growth of ICAMs. However, it is necessary to outline the reasons and factors that might contribute to the process at the company-level. This paper is based on the organizational view. It examines and clarifies the internal dynamics of the ICAMs from a historical perspective. The paper explores the role that international technology transfer has played in the emergence of ICAMs. In conclusion, it is clear that due to direct or indirect spillover from joint ventures, ICAMs were able to autonomously construct the necessary core competitive abilities. Keywords: marketing, international business, multinational corporations (MNCs), technology transfer, Chinese automobile industry but progressive emergence of independent Chinese 1. Introduction automobile manufacturers (ICAMs). It will also The purpose of this study is to investigate -
CHINA CORP. 2015 AUTO INDUSTRY on the Wan Li Road
CHINA CORP. 2015 AUTO INDUSTRY On the Wan Li Road Cars – Commercial Vehicles – Electric Vehicles Market Evolution - Regional Overview - Main Chinese Firms DCA Chine-Analyse China’s half-way auto industry CHINA CORP. 2015 Wan Li (ten thousand Li) is the Chinese traditional phrase for is a publication by DCA Chine-Analyse evoking a long way. When considering China’s automotive Tél. : (33) 663 527 781 sector in 2015, one may think that the main part of its Wan Li Email : [email protected] road has been covered. Web : www.chine-analyse.com From a marginal and closed market in 2000, the country has Editor : Jean-François Dufour become the World’s first auto market since 2009, absorbing Contributors : Jeffrey De Lairg, over one quarter of today’s global vehicles output. It is not Du Shangfu only much bigger, but also much more complex and No part of this publication may be sophisticated, with its high-end segment rising fast. reproduced without prior written permission Nevertheless, a closer look reveals China’s auto industry to be of the publisher. © DCA Chine-Analyse only half-way of its long road. Its success today, is mainly that of foreign brands behind joint- ventures. And at the same time, it remains much too fragmented between too many builders. China’s ultimate goal, of having an independant auto industry able to compete on the global market, still has to be reached, through own brands development and restructuring. China’s auto industry is only half-way also because a main technological evolution that may play a decisive role in its future still has to take off. -
State of Automotive Technology in PR China - 2014
Lanza, G. (Editor) Hauns, D.; Hochdörffer, J.; Peters, S.; Ruhrmann, S.: State of Automotive Technology in PR China - 2014 Shanghai Lanza, G. (Editor); Hauns, D.; Hochdörffer, J.; Peters, S.; Ruhrmann, S.: State of Automotive Technology in PR China - 2014 Institute of Production Science (wbk) Karlsruhe Institute of Technology (KIT) Global Advanced Manufacturing Institute (GAMI) Leading Edge Cluster Electric Mobility South-West Contents Foreword 4 Core Findings and Implications 5 1. Initial Situation and Ambition 6 Map of China 2. Current State of the Chinese Automotive Industry 8 2.1 Current State of the Chinese Automotive Market 8 2.2 Differences between Global and Local Players 14 2.3 An Overview of the Current Status of Joint Ventures 24 2.4 Production Methods 32 3. Research Capacities in China 40 4. Development Focus Areas of the Automotive Sector 50 4.1 Comfort and Safety 50 4.1.1 Advanced Driver Assistance Systems 53 4.1.2 Connectivity and Intermodality 57 4.2 Sustainability 60 4.2.1 Development of Alternative Drives 61 4.2.2 Development of New Lightweight Materials 64 5. Geographical Structure 68 5.1 Industrial Cluster 68 5.2 Geographical Development 73 6. Summary 76 List of References 78 List of Figures 93 List of Abbreviations 94 Edition Notice 96 2 3 Foreword Core Findings and Implications . China’s market plays a decisive role in the . A Chinese lean culture is still in the initial future of the automotive industry. China rose to stage; therefore further extensive training and become the largest automobile manufacturer education opportunities are indispensable. -
2009-Mmrc-269
MMRC DISCUSSION PAPER SERIES No. 269 The Role of International Technology Transfer in the Chinese Automotive Industry Zejian Li, Ph.D. Project Research Associate Manufacturing Management Research Center (MMRC) Faculty of Economics, THE UNIVERSITY OF TOKYO July 2009 東京大学ものづくり経営研究センター Manufacturing Management Research Center (MMRC) Discussion papers are in draft form distributed for purposes of comment and discussion. Contact the author for permission when reproducing or citing any part of this paper. Copyright is held by the author. http://merc.e.u-tokyo.ac.jp/mmrc/dp/index.html The Role of International Technology Transfer in the Chinese Automotive Industry Zejian Li, Ph.D. (E-mail: [email protected]) Project Research Associate Manufacturing Management Research Center (MMRC) Faculty of Economics, THE UNIVERSITY OF TOKYO May 2009 Abstract The so called Independent Chinese Automobile Manufacturers (ICAMs), such as CHERY, Geely and BYD, emerged at the end of 1990's as new entrants to Chinese passenger vehicle market and have achieved remarkable growth. The phenomenon of these autonomous Chinese Automakers is drawing increasing attention not only from academia but also from business and government circles. This paper attempts to clarify the relationship between emergence of ICAMs and International Technology Transfer. Many scholars indicate the use of outside supplies (of engines and other key-parts), as a sole reason for high-speed growth of ICAMs. However, the internal approach, at a level of how companies act, is also necessary to outline all the reasons and factors that might contribute to the process. This paper, based on organizational view, starts from historical perspective and clarifies the internal dynamics of the ICAMs. -
"Industrial Groups and Division of Labor in China's Automobile
The Developing Economies, XXXIII-3 (September 1995) INDUSTRIAL GROUPS AND DIVISION OF LABOR IN CHINA’S AUTOMOBILE INDUSTRY TOMOO MARUKAWA I. INTRODUCTION A. Changes in the Division of Labor in China Until the 1970s, China’s industries had followed a system which can be called a vertically divided division of labor. Under this system each enterprise within an industry generally specialized in producing a particular end product within a spe- cific narrow field, and each enterprise subsumed within itself all of the stages in the production process. In the machinery industry, for example, a firm manufacturing a particular machine would carry out the final assembly process as well as the upstream machining, casting, forging, and heat-treating processes. Figure 1 illus- trates the concept of the vertically divided division of labor as was found in the automobile manufacturing industry. An enterprise subsumed within itself all of those upstream-production stages encompassed by the solid line, but very often the firm produced only one particular end product. This division-of-labor system derives partly from the preconditions in China at the time the country began industrialization. The country’s preexisting industrial base was extremely weak, and there was little hope of procuring parts and compo- nents externally. In addition, the vertically divided division of labor reduced the uncertainties inherent in transactions among enterprises because only a small num- ber of enterprises became involved in the production process from the raw-materi- als stage to the final-assembly stage. As a result the system was seen as more suit- able for a planned economy. -
Savvy and Sophisticated: Meet China's New Car Buyers
Savvy and sophisticated: Meet China’s new car buyers September 2017 Wouter Baan Paul Gao Arthur Wang Daniel Zipser 2 Savvy and sophisticated: Meet China’s new car buyers September 2017 China auto consumer survey 2017 Savvy and sophisticated: Meet China’s new car buyers Wouter Baan Paul Gao Arthur Wang Daniel Zipser Introduction After registering its lowest growth since 2011, China’s automotive market rebounded strongly in 2016 (Exhibit 1). Car sales jumped 20 percent, nearly twice the rate of increase in 2015. Much of this vigorous expansion resulted from the country’s temporary suspension of sales taxes for cars with small engines. Volatility continued in 2017: A large drop early in the year reflected Exhibit 1 China’s auto market rebounded to a 20% sales volume growth Passenger car1 sales volume YoY growth Million cars % 22 23 20 19 17 16 16 15 13 13 11 11 11 6 2010 11 12 13 14 15 2016 1 Including sedan, MPV, SUV SOURCE: McKinsey M-view the impact of strong “pull ahead” sales in December 2016, as many consumers sought to take advantage of a lower sales tax rate before an increase took effect on January 1, 2017. However, sales growth eventually picked up again over the course of the year. While the recent resurgence in sales represents one of the most dramatic shifts in China’s automotive market, a variety of other factors are at play that will drive even more profound changes in the industry over the coming years. Perhaps the biggest of these changes involves the transformation taking place among car buyers. -
Semi-Annual Report 2004
Topics Regional Strategy Japan: Realigning Brand Channels—New Product and Distribution Strategy Aiming to revitalize the Toyota brand and heighten marketing efficiency, we reorganized our five existing brand channels into four in May 2004. The post-realignment strategy focuses Toyota channel on high-end vehicles, Toyopet channel on mid-range products, and Corolla channel on compact cars. Moreover, our new Netz channel—created by merging the Lexus dealer image former Vista and Netz channels—will cultivate untapped markets by concentrating on North America: Leveraging Scion to Cultivate a New progressive, differentiated lineups. We aim to Customer Segment carve out a larger market share by leveraging each channel to raise brand value. Following on from the marketing of the xA and the xB in June 2003 in California, we debuted the tC—designed exclusively for the U.S. market—in July 2004. At the same time, we The new Netz logo stepped up efforts to target young customers Also, plans call for the introduction of the Lexus by launching Scion-marque vehicles at more brand into the Japanese market in August than 700 dealers throughout the United States. 2005. We hope to further entrench competitive Internet sales and a personal specifications dominance in our home market by using this concept that allows customers to freely global, premium brand to meet the increasing combine more than 40 optional parts when demand for cars that offer a “sense of the best” ordering a car have captured the imagination as well as individuality. In the first year, Toyota of younger consumers. As a result, we believe plans to offer four Lexus models through 180 we are dealers. -
Le Trattative Per La Cessione Di Iveco a FAW (Cina): Implicazioni E Possibili Strumenti a Tutela Dell’Interesse Nazionale
Le trattative per la cessione di Iveco a FAW (Cina): implicazioni e possibili strumenti a tutela dell’interesse nazionale. Santagada Francesco – Livadiotti Luca Analytica for intelligence and security studies Paper Intelligence ISSN 2724-3796 Le trattative per la cessione di Iveco a FAW (Cina). Implicazioni e possibili strumenti a tutela dell’interesse nazionale. Livadiotti Luca – Santagada Francesco Correzioni e revisioni a cura del Dottor PANEBIANCO Andrea Torino, marzo 2020 Le trattative per la cessione di Iveco a FAW (Cina): implicazioni e possibili strumenti a tutela dell’interesse nazionale Executive Summary Secondo le dichiarazioni di un portavoce del Gruppo, CNH Industrial è in trattativa per la cessione di Iveco alla FAW Group Corporation (FAW), primario produttore automobilistico cinese, la cui proprietà è riferibile alla Commissione per la Supervisione e l’Amministrazione dei Beni dello Stato cinese. L’eventuale cessione di Iveco, che si configura come alternativa allo spin-off aziendale annunciato da CNH nel 2019, non include i veicoli militari di IVECO Defence Vehicles, storico fornitore dell’Esercito Italiano, ma riguarda potenzialmente tutti gli altri marchi di Iveco S.p.A., oltre a una quota di minoranza della società FPT (divisione motori del Gruppo CNH). Gli impatti dell’operazione sugli interessi italiani possono essere sia occupazionali, per oltre 8.000 dipendenti di Iveco e FPT sul territorio italiano, sia tecnologici, soprattutto in materia di biomobilità e progetti sull’utilizzo dell’idrogeno. A fronte delle numerose -
The Rise of China's Luxury Automotive Industry
Heritage with a High Price Tag: The Rise of China’s Luxury Automotive Industry Sydney Ella Smith AMES 499S Honors Thesis in the Department of Asian and Middle Eastern Studies Duke University Durham, North Carolina April 2018 Guo-Juin Hong Department of Asian and Middle Eastern Studies Supervising Professor Leo Ching Department of Asian and Middle Eastern Studies Committee Member Shai Ginsburg Department of Asian and Middle Eastern Studies Committee Member Heritage with a High Price Tag: The Rise of China’s Luxury Automotive Industry Sydney Ella Smith, B.A. Duke University, 2018 Supervisor: Guo-Juin Hong TABLE OF CONTENTS Author’s Note ...........................................................................................................ii Introduction: For Automobiles, Failure Builds Resiliency ......................................1 Chapter 1: Strategy Perspectives on the Chinese Automotive Industry ...................9 Michael Porter’s “Five-Forces-Model” ........................................................12 Michael Porter’s “Clusters and the New Economics of Competition” ........23 Chapter 2: Luxury Among the Nouveau Riche: The Chinese Tuhao (土豪) .........32 What is Luxury? ...........................................................................................34 Who Buys Luxury? ......................................................................................39 Evolving Trends in Luxury ..........................................................................45 Conclusion: Cars with Chinese Characteristics ......................................................49 -
The Case of FAW Volkswagen
2018 International Conference on Economic Management Science and Financial Innovation (ICEMSFI 2018) ISBN: 978-1-60595-576-6 The Supplier System in Chinese Automobile Industry: The Case of FAW Volkswagen Meihui Zhao ABSTRACT Recently, the Chinese automobile industry has achieved remarkable progress. Both production and sales volumes in China have been rapidly increasing. Based on the overall auto sale volume in China, over 50 percent of production volume belongs to joint-venture manufacturers. In order to investigate competitive strategies of the Chinese automobile industry, the study of automobile companies and their supplier systems (SS) are necessary. In the current research, the joint venture manufacturer FAW VW Automobile Co. Ltd., (FAW VW), which is a leading automobile company with high performance in the Chinese market, is taken as an example. Through applying the comparative study methodology, as well as the investigation and analysis methods based on FAW-VW and its supplier system, the drawback of the current supplier system has been identified. The major implication of the proposed study is that inter-organizational relationships of FAW-VW and its suppliers are becoming stronger during the progress of solving problems while the development and production systems are still relying much on suppliers1. INTRODUCTION In the automobile assembly maker, approximately 20000 parts are assembled, and the ratio of material cost to manufacturing cost exceeds 70%. As automobile assembly manufacturers procure most of them from external parts suppliers, their competitiveness depends largely not on only their own development and production process management but also the purchasing control abilities. Therefore, when analyzing the competitiveness of automobile manufacturers, it is important for 1Meihui Zhao, Graduate School of Utsunomiya University, 350 Mine-Machi Utsunomiya, Tochigi, Japan 141 automobile manufacturers to focus on the supplier system, which is the comprehensive interdependence relationship with suppliers (Asanuma, 1997; Fujimoto, 1998). -
Volkswagen Cars, Politics, and Culture in the Post-1978 China: the Social Construction of Success
Volkswagen Cars, Politics, and Culture in the Post-1978 China: The Social Construction of Success Xiaolan Qiu Dissertation submitted to the faculty of the Virginia Polytechnic Institute and State University in partial fulfillment of the requirements for the degree of Doctor of Philosophy In Science and Technology Studies Timothy W. Luke (Chair) Daniel Breslau Ellsworth Fuhrman Saul Halfon February 13, 2012 Blacksburg, Virginia Keywords: Volkswagen, Shanghai-Volkswagen, technology policy, sociology of technology, China Volkswagen Cars, Politics, and Culture in the Post-1978 China: The Social Construction of Success Xiaolan Qiu ABSTRACT Volkswagen (VW) is one of the first foreign carmakers that made direct investments in China after 1978. From its entry in the Chinese market to the year of 2009, VW enjoyed popularity, high reputation, and undisputed leadership in the Chinese passenger car market, and achieved a great commercial success. Most previous accounts attribute VW’s success in China to VW’s wise business operation or Chinese government’s support. This study guided by the methods and theories of technology studies, especially the actor- network theory (ANT), takes into account technical, socioeconomic, political, or cultural factors simultaneously. By selecting one of VW’s successful joint ventures with China – Shanghai Volkswagen (SVW) – as a case to do in-depth investigation, it examines the relationship between heterogeneous actors (both humans and nonhumans) and the pathways of SVW development, and has found that all of the SVW establishment, production, marketing, and development were shaped by a range of diverse social and material actors, including the central planners, local government, VW, local suppliers, Chinese consumers, and VW cars, and depended on Chinese particular political and cultural context; VW’s success in China presents a story of co-construction of power and actor-networks. -
2020 International Forum (TEDA) on Chinese Automotive Industry
2020 International Forum (TEDA) on Chinese Automotive Industry Development Annual Theme: Double Upgrading of Industry and Consumption Restructuring the New Ecological Layout September 4, 2020 (Offline Meeting) Opening and Cooperation to achieve Win-win in Future: Development Environment for High-level Autonomous Driving and International Coordination Background: At present, the mass production of low-level autonomous driving vehicles has started. The development of high-level self-driving vehicles is still in the initial stage due to the impacts of various factors such as laws, regulations, usage environment, and technology maturity etc.. Europe, the United States, and other countries and regions have been relatively active in programming and investing in the field of autonomous driving. The R & D and tests on autonomous vehicles had been carried out earlier; the Framework Documents for Autonomous Driving Vehicles, which was jointly established by China, the European Union, Japan and the United States, had passed the examination of the United Nations in June 2019. It is a solid step in the development of high-level self-driving vehicles. However, G9 Forum (VIP the future development is still highly dependent on the supports of the policy Closed-door Meeting, environment, technology R&D, and the building of infrastructure. Therefore, to for VIP only) carry out international exchanges and cooperation to actively promote the development of autonomous driving and intelligent connection has become an 13:00~15:30 important direction for the sustainable development of the automotive industries in various countries. Form of Meeting: Build a multilateral communication platform for the automotive industry. The host will lead each speaker to gave a speech (about 5 minutes) in turn.