Chinese Automotive Industry Case Study

I-INRODICTION ------------------------------------------------------------------------2

II-Foundation --------------------------------------------------------------------------2

IIA- Foreign Producers in the Chinese automotive Industry------------------------2 IIB- component suppliers in china -------------------------------------------------------------3

III- Obstacles ---------------------------------------------------------------------------4 IIIA-Environmental Issues--------------------------------------------------------------------------4

IIIB - Increase Demand IN Energy----------------------------------------------------------------5 Introduction: the fastest developing country in the history of the world is china in many

The automobile industry is one the aspects which becomes major factor in chines economy. Chinese car manufacturing is considered quit a Modern industry. It was started in 1980s by joining Chinese labor with the foreign companies to provide them with experience with car manufacturing. The first company enter China was Volkswagen in 1984 with production base in Shanghai. Volkswagen Take advantage of inexpensive labor and China established a new and profitable industry. The Honda Company entered Chinese second in 1994 with car parts production. Those combines were the core of Chinese car manufacturing. Nowadays Chinese automobile industry became world largest by unit production from four years which Beyond the European Union or the USA production. This paper will demonstrate the foundations and obstacles of automotive production in China. Foundation: I- Foreign Producers in the Chinese automotive Industry:

the foreign combines where and still one of the major factors in Chinese automobile

Specialized suppliers are required because the increasing in car design complexity. Suppliers are companies specializing in the production of parts and systems for large automotive Industry for example break systems and fuel injection systems. The turnover of the automotive component industry reached $54 billion in 2004 According to China Automotive and Technical Research Centre. Three-quarters of a hundred of the best international automotive component manufacturers have established manufacturing processes in China for two aspects. First aspect is supplying local vehicle manufacturers to cover the huge local. The second aspect is labor cost. China has low labor cost. It around 1/30 of those in the advance countries that means decreasing in the total cost per