Chery

In: Business and Management

Submitted By tokra
Words 1884
Pages 8
Thomas D. Lairson
Forthcoming in Wenxian Zhang and Ilan Alon, (eds.) A Guide to the Top 100 Companies in China, Edward Elgar, 2010.

Chery Automobile Company Chery Automobile Co. Ltd. (奇瑞汽车股份有限公司) is one of the most important of Chinese automobile manufacturers. Though it remains owned by the local government of Wuhu, and is by no means the very largest of China’s car companies, Chery has been able to compete effectively in a very crowded domestic market and has established a significant position in international markets. This is rather remarkable for a firm founded in 1997 in a very poor province not known for economic innovation.
Historical Development By Western standards, Chery is an unusual firm. It is the result of the hybrid nature of many Chinese businesses, combining government ownership and effective and competitive management. Quite simply, Chery exists because of the entrepreneurial efforts of government officials – known as the “Eight Guardians” - in a relatively small Chinese city looking to expand the economic base of their area and spurred on by the dramatic economic growth happening all around them. By the mid-1990s economic reform had led to fifteen years of rapid growth concentrated along the eastern coat of China. A second stage of growth extending these opportunities across the entire nation began in 1993. The Wuhu government, with support from the Anhui provincial government, was in the best position to define a new economic direction for the area and establish firms able to operate in the new market economy. The municipal officials purchased an automobile engine assembly line and engine technology from British Ford in 1996, attracted a number of entrepreneurial engineers from FAW-Volkswagen, and combined a set of auto parts companies already owned by the Wuhu government to establish the predecessor to Chery in 1997. Skirting…...

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