Brilliance Auto: A Chinese Automaker with Global Ambitions
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Case Code: BSTR369 Case Length: 22 Pages Period: 2003-2009 Pub Date: 2010 Teaching Note: Available |
Price: Rs.400 Organization: Brilliance China Automotive Holdings Ltd. Industry: Automotive Countries: China, US, Germany Themes: International Business Management, Globalization Strategy, Product Development and Innovation |
Abstract Case Intro 1 Case Intro 2 Excerpts
"As a major leader of China's proprietary auto brands, Brilliance Auto always clings to the principle of 'owning proprietary technologies and building self-owned brands through independent innovation', continually improving its R&D capability and striving for the sustainable development of the company"
- Qi Yumin, CEO of Brilliance China Automotive Holdings Ltd. speaking about the company in, June 2009.
"Brilliance (Auto) is the icebreaker for all the other Chinese manufacturers in Europe."
- Hans-Ulrich Sachs, Head of HSO Motors Europe (HSO), in September 2007.
Introduction
In August 2009, Brilliance China Automotive Holdings Ltd. (Brilliance Auto), the eighth largest automaker in China, began preparations to ship its BS4 Wagon - a vehicle designed and developed in-house - to Europe. A company executive said, "We are going through regulatory procedures currently in Europe trying to get our BS4 Wagon into the market."
The company expected to clear all the regulatory requirements by the end of 2009. Brilliance Auto was the first Chinese automaker, and as of 2009 the only one, which had managed to make an entry into the coveted western European auto market with its own brand of vehicles. It was in 2007, that it entered the European auto market through Germany, and over time introduced its two sedans - the BS6 and the BS4. By August 2009, the company claimed to have sold about 4,000 of its sedans in Europe.
Brilliance Auto was one of the major independent Chinese automakers, like Chery Automobile (Chery) and Geely Automobile (Geely), who sold their vehicles in China under their own brands.
Many of the top Chinese auto manufacturers mostly manufactured vehicles as part of joint ventures (JVs) with foreign auto companies and sold them under the foreign brands (See Exhibit IA, IB,IC for an overview of the Chinese auto market).
Brilliance Auto initially started out manufacturing minibuses and auto components in 1992. In 2002, the company launched the first indigenously developed Chinese car, the Zhonghua sedan...
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