In 1908, Henry Ford revolutionized the auto industry by drastically reducing the cost of production with assembly lines. A century later, on the other side of the world, an unknown Chinese car manufacturer Chery, was in a seemingly similar revolution participation: making inexpensive cars, priced around $ 5,000, for the masses of Chinese middle class. To achieve its objective, Chery originally adopted a cost-based strategy to follow. In December 2004, GM Daewoo lawsuit against Chery for de … Read more »

1908 Henry Ford revolutionized the car industry by drastically reducing the cost of production with assembly lines. A century later, on the other side of the world, an unknown Chinese car manufacturer Chery, was in a seemingly similar revolution participation: making inexpensive cars, priced around $ 5,000, for the masses of Chinese middle class. To achieve its objective, Chery originally adopted a cost-based strategy to follow. In December 2004, GM Daewoo lawsuit against Chery for design piracy. The success of the QQ model and the possibility of greater future success nevertheless led management to dream Chery, Chery evolving into a more mature car-maker. In December 2006, two years after GM launched its lawsuit Chery was the top candidate on Chrysler list to produce a small car for sale in the United States. The question remained whether Chery could transform from a local manufacturer to a true global player in the crowded and largely unprofitable automotive
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from
Ali Farhoomand,
Marcus Scheutz,
Richard Bauer
Source: University of Hong Kong
27 pages.
Publication Date: Nov 15, 2007. Prod #: HKU676-PDF-ENG
Chery Automobile Company: Evolution of China’s automobile industry HBR case solution