ipl-logo

Chery Auto Case Study

3387 Words14 Pages
bulb-icon

Recommended: Automobile development in China

Contents
Background of the company 3
Growth of the company 3
Chinese automotive industry 3
External Environment Analysis 5
Business Strategy 5
Internationalization 6
Competitive landscape 8
Chery automobile - During the recession 9
Chery automobile - After recession 10
Exhibits 11
References: 15

Background of the company
Chery Automobile Co. Ltd is a government owned automobile manufacturing company in China founded in the year 1997.The product portfolio of Chery consists of 15 models which includes minivans, passenger cars and SUVs including the QQ compact, the A5 sedan, and V5 crossover. It also offers full electric and hybrid models. The exports of Chery account to 25% of its total production and it is the …show more content…

Chinese products were perceived as of low quality. Apart from that, there were logistical, servicing and duty issues as well for the imports to America. Chery felt that key partnerships offer resources and expertise to improve manufacturing quality. Even after lot of entry barriers, Chery Automobile recorded good growth since its inception. In the year 2006, Chery had sales volume of 3,05,200, 62 % growth compared to the last year with a market share of 7.2 % of Chinese automobile market thereby showed strength in an industry which was long monopolized by Chinese foreign jointly funded brands. Sales figure of Chery is displayed in exhibit …show more content…

The aim was to gain stability from domestic sales and strengthen its position via overseas expansion. In 2001, it had its first international success. They had sold 10 units of its Fengyun- its first domestic model to a Syrian dealer. In 2003, Chery Motor Co. became the first Chinese company to open a foreign production facility when it began manufacturing several models in Iran. Some more plants were opened, in Russia in 2005 and Malaysia in 2006. By the end of 2006, Chery had exported its products to 67 countries and regions. In April 2011, it became China’s first auto maker with exports of over 500,000 units. Chery has placed equal attention to the innovation and R&D. Since, 2003 it has applied and received 2452 patents at the State Intellectual Property Office of China. Chery’s success in domestic and international markets can be attributed to persistent international cooperation. Right from designing motor engines to production lines, it collaborated with firms from technologically advanced countries. The skill set acquired over the years via collaboration transformed Chery into successful car design maker firm. As a result, two models introduced by, QQ and Fangyun dominated Chinese passenger car market. Chery’s principal objective behind entering overseas market was to improve technological capabilities through a network of international collaboration. Chery established a series of

Show More
Related
252 Words | 2 Pages

These chapters show the drive of what an individual can have. For example, Chapter 11 shows the drive of gay wanting to fix the Model T car to get to Carmel Hill. In chapter 13, Mark, the boys, and Eddie find a carburetor to fix up the Model T car. In the world today, people need to have the drive of what these boys do to get the job done. In chapter 12, I found it interesting that on their way to find a new carburetor they find carrots, chicken, and all the others supplies to cook the chicken all at one place.

Read More
790 Words | 4 Pages

‘The Tampa Decision: Examining the Australian Government’s prerogative power to detain and expel unlawful non-citizens in 2001’ The executive power of the Commonwealth has largely been neglected, both by the High Court and by commentators, receiving scant attention in comparison with the Commonwealth 's legislative and judicial powers. However, it was just fourteen years ago, in 2001, when a Norwegian cargo vessel MV Tampa being denied entry into Australia after rescuing 438 asylum seekers sparked one of the most controversial yet illuminating civil cases in Australian legal history. The result was a civil suit (Ruddock vs Vadarlis 2001) in which the Federal Government successfully appealed the initial ruling to the Full Court of the Federal Court of Australia, where it was found that the government does indeed possess a prerogative power to prevent the entry of non-citizens into

Read More
1681 Words | 7 Pages

Supply companies now work with the automakers to design and manufacture

Read More
1436 Words | 6 Pages

However, HK plant would still be kept as a place for smaller size order and unexpected risky circumstances, which may occur in other locations. * * I agree with short term and long term relationship with HK and China. But I would like to add one more recommendation which is using HK and China based on the product categories -; HK vs. China Comparison HK China Production Manufacturing at twice the speed

Read More
1404 Words | 6 Pages

First and foremost, one must acknowledge the plainly visible fact that the Chinese economy has grown exponentially since the process of integration into the global economic system began. China 's comparative advantages, particularly in the labor sector, has transformed it into the second largest recipient of FDI in the world.1 Over the course of the last 20 years, exports have grown approximately 17.1 percent per year.2 This ultimate result of this investment and trade has been an overall growth rate 8 percent per annum,3 which would have been completely unattainable without the country 's engagement in globalization. Foreign investments have

Read More
900 Words | 4 Pages

In the beginning of the early 1990’s Porsche faced a severe problem. After orders decreased to 30% from 1986 to 1993 the company was on the verge of bankruptcy. The loss of almost 240 Mio. DM was so far the biggest in the company’s history. Porsche’s day as an independent luxury car company seemed to be over.

Read More
1308 Words | 6 Pages

Introduction Huaneng Power International (HPI) was founded on June 30, 1994, during a time of strong economic growth and development throughout the People’s Republic of China (PRC). The mandate of HPI was to supply power for the PRC’s fastest-growing provinces, because “it became clear that the current industry structure would be insufficient to meet the projected demand” (White, 1998). However, in order for HPI to allocate the needed power supply it needed to expand its current company, i.e. allow for constant technological innovation, improve its transportation network, and acquire rights to more plants; this vast expansion required an estimated RMB34.4 billion (White, 1998). HPI was faced with several obstacles while choosing between different alternatives to obtain capital needed for expansion.

Read More
2452 Words | 10 Pages

1.1. Positioning the company – Competition Porsche Automobile Holding SE, usually shortened just to Porsche, is a German holding company with investments in the automotive industry and has about 18,000 employees all over the world (Porsche, 2014). The main competition for Porsche’s high-end cars like the 918 Spyder or the 911 Turbo or Turbo S is arguably from Italian specialty automaker Ferrari. In similar demographics the brands appeal through traditionally vehicles to quite different personalities.

Read More
1306 Words | 6 Pages

INTRODUCTION: Mercedes Benz is a globally known brand, originated in Germany. Benz is specialized in automobiles like cars, buses, trucks, etc. EXTERNAL BUSINESS ENVIONMENT: The automobile industry is a multi-billion industry with large brands in market. It’s important to carry out analysis on microenvironment before formulating strategies.

Read More
1031 Words | 5 Pages

1) If Toyota is not the cause of unintended acceleration, why was it blamed for it? Last quarter of 2009 The leading Toyota motor corporation has faced disaster in their products because of unexpected quality issues, so to overcome in their fault they issued huge formal recall of their products all over the world. In this period, Toyota recalls around 5.2 million cars for floor mat problem and 2.3 million cars for accelerator pedal problem. For both case around 1.7 million cars and following this Toyota amplify 1.8 million cars from Europe and 75,000 from China (almost 9 million cars recall all over the world within a month).

Read More
1002 Words | 5 Pages

US auto industry is full of auto manufacturing companies, BMW Group, Chrysler/Dodge/Jeep, Ford Motors, General Motors, Honda/Acura, Hyundai/Kia, Mazda, Nissan, Subaru are the main competitors in US Auto market. For 2012 as a whole, automakers sold approximately 14.5 million vehicles in the U.S. Market, a 13 percent increase from 2011 and the highest annual sales total since 2007 marking the third consecutive year of annual sales increases of at least 10 percent. As fuel prices remain high and there is greater concern for the environment, more energy efficient cars are increasing in demand.

Read More
1406 Words | 6 Pages

Political factors have huge influence on the profitability of the automobile industry. Political also include goods and services which the government wants to provide and goods

Read More
2531 Words | 11 Pages

They started out with providing customer satisfaction, which was not the trend in automobile sector during those days. They are credit to have brought a revolution in the sector, to be the first company to be a mass production company, and sell more than a million cars in a year. The company has 2 manufacturing plants in Gurgaon and Manesar, which have a joint production capability of 1.5 million vehicles annually. A third plant is being proposed to be functional very soon in Mandal, Gujarat.

Read More
924 Words | 4 Pages

Volkswagen has always had a close relationship with Porsche, the Zuffenhausen-based sports car manufacturer founded in 1931 by Ferdinand Porsche, the original Volkswagen designer and Volkswagen company co-founder, hired by Adolf Hitler for the project. The first Porsche car, the Porsche 64 of 1938, used many components from the Volkswagen Beetle. The 1948 Porsche 356 continued using many Volkswagen components, including a tuned engine, gearbox and suspension. The two companies continued their collaboration in 1969 to make the VW-Porsche 914 and Porsche 914-6.

Read More
1072 Words | 5 Pages

Peugeot is one of the most well-known French automobile manufacturer companies, founded in 1810 by Armand Peugeot. With many successful sales worldwide, approximately 2.973.000 vehicle sales during 2015 and remarkable rewards, Peugeot can be considered as one of the leading companies in the European and global automotive industry. As noted in the ‘’New Cars Industry Profile: France’’, the companies’ revenue for 2016 was $72.563 million (p.24). All companies, regardless of the industry they belong to; in order to thrive they have to successfully conduct customer segmentation. In other words, they need to divide their potential customers into groups that share common characteristics, needs, etc.

Read More

More about Chery Auto Case Study

Related Topics

Open Document