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
Excerpts
The Joint Venture with BMW
In March 2003, Brilliance Auto through one of its subsidiaries, Xing Yuan Dong entered into a JV agreement with BMW to produce, sell and provide after sales service for BMW sedans in China...
Brilliance Auto's Products
Brilliance Auto manufactured and sold its own branded sedans, commercial motor vehicles, minibuses and automotive components (See Exhibit III for the company's products and brands sold in China)...
Becoming a Global Company
In 2006, Brilliance Auto was the 15th largest auto manufacturer in China with revenues of US$ 1.3 billion. At that time the company decided to follow the lead of other Chinese automakers and launched initiatives to market its products in some countries of Africa and Asia...
Entry into the European Market
From the mid-2000s onwards, Brilliance Auto had several times announced its intentions to enter the European auto markets (See Exhibit VA for new registrations of passenger cars in European countries in June 2009 and Exhibit VB for annual production of passenger cars in Europe in 2008)...
Changing Fortunes
In July 2007, the company delisted its ADSs from the NYSE, citing low trading volumes and high administrative costs. Michael Yang, Executive Director of NYSE Group Asia-Pacific said, "It's a normal move as the company has been unable to raise enough money (on the NYSE) - although it's a pity for us."...
Moves to Enter the US Market
In 2007, at around the time it entered the German auto market, Brilliance Auto began US quality and crash tests on its cars, in order to make them ready for the US auto market, which it planned to enter in 2-3 years...
Future Plans
In April 2009, Brilliance Auto showcased its electric car, Zhonghua EV at the Shanghai Auto Show. However, the company said that unlike other Chinese automakers, it wished to be cautious in introducing electric vehicles (EVs) to the market...
Outlook
According to Organisation Internationale des Constructeurs d'Automobiles (OICA), in the 2008 rankings for the world's own-brand auto makers by output, there were eight Chinese carmakers among the world's top 30 largest producers, and Brilliance Auto was one of them...
Exhibits
Exhibit IA: Overview of the Chinese Auto Industry
Exhibit IB: Top 10 Commercial Vehicle Manufacturers in China as of 2008
Exhibit IC: Top 10 Bus Manufacturers in China as of 2008
Exhibit II: The Company Chart of Brilliance Auto
Exhibit III: Brilliance Auto's Products and Brands in China
Exhibit IV: Consolidated Financial Information (2004-08) for Brilliance Auto
Exhibit VA: New Registrations of Passenger Cars in Some European Countries in June 2009
Exhibit VB: Annual Production of Passenger Cars in Some European Countries in 2008
Exhibit VI: The BS6 Sedan
Exhibit VII: Brilliance Auto's Sales
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