Chery Automobile Company: Evolution of the Chinese Automotive Industry Harvard Case Solution & Analysis

In 1908, Henry Ford revolutionized the automobile industry by significantly reducing the production costs of assembly lines. A century later, on the other side of the world, an unknown Chinese car manufacturer, Chery, was allegedly involved in similar revolution: the production of low-cost car for about $ 5000, for the broad masses of the Chinese middle class. To achieve its goal, Chery, first delivered cost strategy based on imitation. In December 2004, GM Daewoo sued Chery for design piracy. The success of QQ, and the ability to do better in the future, nevertheless led management Chery, Chery dream to develop a more mature auto maker. In December 2006, two years after GM launched its lawsuit, Chery was the leading candidate in the list of Chrysler to produce a small car for sale in the United States. The question remained whether Chery can turn from a local manufacturer into a global player in the crowded and mostly unprofitable automotive industry "Hide
by Ali Farhoomand, Markus Schutz, Richard Farmer Source: University of Hong Kong, 27 pages. Publication Date: November 15, 2007. Prod. #: HKU676-PDF-ENG

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