The Study On Multinational Automotive Companies' Strategic Global Sourcing In China

In the 21^st century,the world's top 9 auto giants have set up joint ventures in China with advanced technology by the end of 2003.China's auto market growth rate maintained at about 25%in recent years.At present,China has become the world's 2^nd.largest auto consumer,the 3^rd.largest auto producer,and the largest potential market.Meanwhile,with China's accession to WTO to fulfill its commitment,with gradual reduction of import tariffs,with gradual disappearance of local protection,China gradually becomes one of the hottest areas for global sourcing by many multi-national automotive companies.In 2010,China is expected to be the world's largest automotive spare parts market with annual sales revenue about 800 billion—165%increase than present.Through a series of analysis,the thesis will provide reference and help to those multi-national automotive companies who carries out global sourcing activities in China,as well as domestic companies.First of all,the thesis shows latest research progresses,shortcomings on automotive industry's global sourcing.Secondly,it introduces multi-national automotive companies' current sourcing status in China,cost driven strategy under the premise of standardization and its characteristics.After that,it describes the purchaser driven strategy of automotive industry.It's necessary for Chinese suppliers to satisfy those quality standards of multinational companies to enter their architecture of global value chains.Last but not least, there's an analysis of Chinese suppliers' existing problems and their reactions from business strategy point of view.