The Chinese Automotive Industry

The Chinese Automotive Industry

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GEO 304 The Chinese Economy
Termpaper fall 1999

The Chinese Automotive Industry

The Cases of Volkswagen
Fiat Group


Ralf Weyand,
Gerald Kahlke,
Maximilian Boehmer,
Table of Contents
1.Introduction 3
2.The Position of the Chinese Automobile Industry 3
2.1 The Relation to the Chinese Economy 3
2.2 The Relation to Foreign Economies 4
2.3 The History of the Automobile industry in China 6
3.The Chinese Market 7
3.1 Major Automobile Enterprises 7
3.2Automotive Industry in Shanghai 8
4. Volkswagen in China 10
4.1 Introduction 10
4.2 Shanghai Volkswagen Automotive Company Ltd. 10
4.3 Chronology 11
4.4 Main Areas of Collaboration with the Chinese Partners 12
4.5 Prospects 15
5. Fiat Group in China 17
5.1 Introduction 17
5.2 Main join ventures 18
5.3 Main Areas of Collaboration with Chinese Partners 19
5.4 Prospects 20
6. Outlook 21
7. References 22
Appendix 23
Table 1: Key facts and figures (as at: December 1998) 23

This paper wants to focus on the automobile industry in China in several ways. First of all the position of the Chinese automobile industry will be described by relating it to the whole of the Chinese economy, including in particular the banking system. In a second step we will relate the automobile industry to foreign economies. A brief overview over historical events concerning the Chinese automobile industry will follow as well as a short presentation of the present automobile companies in China.
In the second part the paper will focus on the entrance and the behavior of Volkswagen in the Chinese market. Here we will take especially a look on the joint ventures of the Volkswagen Group with First Automotive Works in Changchun and the Shanghai Volkswagen Group.
In the third part we will give a short summary of Fiat Group's activities in China and its main joint-ventures.
2.The Position of the Chinese Automobile Industry...

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