This case is about GLOBAL STRATEGY, GOVERNMENT, JOINT VENTURES, SUPPLY CHAIN
PUBLICATION DATE: July 08, 1999
Shanghai Volkswagen: Facing a New Era Case Solution
This note goes throughthe development of the Chinese auto industry and of Shanghai Volkswagen (SVW), a successful joint venture in China. Created in 1984, SVW is a joint venture between Volkswagen of Germany and the Shanghai Automobile Industry Corp. (SAIC). One essential component of SVW’s strategy to date has been to work closely with local providers, many of which are commanded by SAIC.
SVW is the top automobile manufacturer in China, but the competitive landscape is changing fast, and the traditional strengths of SVW could prove to be impediments later on.