The Study of ECFA and export strategies of domestic car manufacturers

• Main Authors: Lu-Chung Chiang, 蔣祿中
• Other Authors: Chien-Te Ho
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/46102720593272558217

碩士 === 元智大學 === 管理碩士在職專班 === 102 === Domestic automobile industry has developed for nearly 60 years and plays a vital role in Taiwan’s economy; however, the market size is gradually decreasing and getting saturated. On the opposite, China’s automobile market is expanding so fast that it influences all car manufacturers’ global business strategies and brings opportunities and threatens to Taiwan’s automobile industry at the same time. The purpose of this study is to understand the export strategy and future development directions in responding to domestic market saturation, and possible car export to China under ECFA through individual cases. The result of this study shows that a domestic company that can make business strategy independently, has self-brand, and a complete arrangement in China owns the most flexible export strategy. When ECFA allows complete car export, the company can share production load with China immediately and raise the production rate in domestic factory. If ECFA doesn’t come into effect, the company still can also take advantage of China’s lower labor cost and competitive price to produce and sell self-brand cars with joint factory in China and sell cars to overseas market at the same time. Although the complete cars are not exported from Taiwan, they still make contribution to the company’s profit. Reviewing the key growing factors for automobile industry, for both domestic and foreign manufacturers, if a company can satisfy customers’ dynamic demands, continuously develop outstanding products, hold future ECO cars developing trend and skill, it will certainly stands out from global competition, and has sustainable growth.