General Motors and Chinese Joint Ventures & Ford Global Platform Strategy

INTERNATIONAL
BUSINESS
General Motors and Chinese Joint Ventures
&
Ford Global Platform Strategy

A. General Motors and Chinese Joint
Ventures
 The case scenario gives an overview of the GM motor joint venture with
SAIC in the Chinese automotive market that has ensured the success of
the company in the international market.
 The company was attracted to China’s potential market created with its
1.4 billion population and other investment opportunities.
 The company has a result has increased its manufacturing capacity in the
country to match the high demand and is expected to increase production
due to forested increase in demand.
 The demand for the vehicle in the Chinese market is expected to increase
from 28 million to 35 million in 2022.
 This requires the company to increase its production capacity and GM
motors are building more factories in China for this demand.

GM entered the Chinese market when
demand was very limited
 The GM motors company entered the Chinese market at the time
when the demand was limited since the company was attracted to
the potential market.
 The population of the country of 1.4 billion people was a potential
market that attracted the GM motors company to venture into the
Chinese market.
 the company was also attracted to the growth that China was
experiencing at the time of investment into the country.
 This offered enormous potential for the company’s vehicles
(Naughton, 2013).

Why GM entered the Chinese market
through a joint venture with SAIC
 Firstly, the company lacked knowledge and connection in China to enter the
market alone.
 Entering the market through a joint venture with a Chinese company would,
therefore, ensure that the company has connection required for successful
business operations.
 Secondly, the Chinese government regulations made it impossible to enter
the market without a joint venture.
 Entering the country’s vehicle market through joint venture made the
company allowed to operate in the country freely by the Chinese
government (Krisher, 2017).