HBR Shanghai Volkswagen上海大众.pdfVIP

Harvard Business School 9-696-092 April 23, 1996 D Shanghai Volkswagen O On November 9, 1994, Peter Loew, the Deputy Managing Director of Shanghai Volkswagen (SVW), was to address the Santana Localization Community for the German-Chinese joint venture. This was a select group of Chinese parts manufacturers parts for the Santana, the Volkswagen marque manufactured in China. This was an elite group: entry into the community was restricted and required each of the Chinese parts manufacturers that made up its membership to meet specific quality standards established by SVW. N Paramount on Loews mind was the Chinese governments refocused efforts to develop a home-grown passenger car industry. On February 19, 1994, a new policy for the Chinese automotive industry which had been on the drawing table for years was outlined by an announcement of the State Planning Commission. The strategy was designed to: O [enable] the automotive industry of our country to develop into a pillar industry . . . within the shortest time possible: effecting a change wherein capital investment is consolidated, production scale increased, technology upgraded, new product development capability enhanced, product quality improved, technical level T of equipment updated, and industrial structure reorganized for the benefit of the auto industry. Through implementation of this policy, our automotive industry will be on firm foundations by the end of this century. Further, two five-year