The Case of German Automotive Investment in China- Using Volkswagen Consortium as an Example

• Main Authors: Syuan-Jyu Chang, 張軒鉅
• Other Authors: 郭秋慶
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/51642674765724212511

碩士 === 淡江大學 === 歐洲研究所碩士班 === 100 === Because of economic globalization, the Volkswagen Consortium (VGC) wascompelled to transform itself from a public enterprise and a local brand into a transnational corporation in the automobile industry. As a leading European economy, Germany has been relying on its automobile industry as its main export product and it has been one of the Germany’s core industries. In a mist of economic globalization and the rise of the Japanese automobile industry, the VGC has adapted to change by intra-organization rebuild and investment in China and other emerging countries. When Japanese automobile industry is on the rise, China attempts to offer more incentive for investment by the international automobile companies through China’s Reform and Opening up Policy and this is the very moment that Chinese automobile industry is going through a periodical change. Owing to the fact that China employed the “Yinjinlai Zhanlue” or “Open Strategy” to attract more foreign investment after its reform and opening up policy, this has shaped the form of the economic cluster that we see today and of the relationship between Chinese and foreign automobile makers. We then consider the challenge the Chinese automobile industry is going to face after its entry into the World Trade Organization. Finally, we will turn our attention to the impact the foreign car makers have brought to Chinese automobile value chain and to the latest development of the Chinese automobile industry. The VGC set up a joint venture automobile Ltd., with Shanghai Automotive Group in 1984 and Changchun First Automotive Group in 1991 respectively. The world-renowned brand has started to run its business locally in China. Through its investment in China automobile industry, the VGC manages to gain its enterprise value and business performance management.