Feasibility Study On Joint Venture Project For Automotive Electronic Products

China automotive market is enjoying a burst of boom and an overalltechnology and product upgrade. Automotive electronics content increase isone of the most important drivers. Our country started late for developingautomotive electronics control technology. The industry is weak and behindthe development speed of our whole vehicle manufacturing. We have a biggap between developed countries and joint venture cooperation is a veryimportant approach to narrow this gap, enhance the development andmanufacturing capability of automotive electronics industry so that there arelots of local auto parts companies develop their electronics capabilitythrough Chinese foreign joint ventures currently. In view of above mentionedfacts, the feasibility study of electronics product joint venture is verynecessary and of practical significance.Based on the fact that current auto parts industry does not putimportance on market analysis, especially on targeting auto electronicsmarket and Chinese foreign cooperation feasibility study during programfeasibility period, which increase the market and cooperation risk of auto product program, this thesis brings forward the concept of doing feasibilitystudy for auto electronics market and joint venture cooperation feasibilityduring program feasibility study period on the basis of the analysis andsummary of current program feasibility situation. From market analysis side,it defines the electronics market scope by analyzing China light vehiclemarket needs and new vehicle planning together with the analysis method ofauto electronics product development trend and electronics products contentpercentage. Then it realizes market segmentation and target marketidentification through local auto parts supply chain analysis. Afterwards, itmakes an overall analysis of the impact factors on auto electronics partsmarket; summarize the competitor status in the market and conductscompetitiveness analysis to raise solutions for competitive advantage acquire.From the feasibility study of joint venture cooperation side, it mainlyanalyzes the strategic topics of cooperation motivation, relationship of twoparties, controlling power of the joint venture and the stability of cooperationto provide supporting evidence for joint venture cooperation feasibility sothat the purpose of stable joint venture cooperation and Chinese partystrategic control of the joint venture can be realized.Based on the study of theory, linked to the joint venture program of thecompany with US Lear electronics products, it implements the applicationand practice by using concepts raised in this thesis. Through the market study, the target market scale of the program products is identified and the marketdeveloping strategy and solutions to improve competitiveness are defined.Through the study of joint venture cooperation, it confirms that themotivation of two parties is high; the strategic purpose is clear; therelationship is good so that the program feasibility is tenable. Through theevaluation of non-holding enterprises control model, Chinese party canbasically control the joint venture and cooperation strategy is stable. Thethesis completes the financial analysis based on the fact that the market andjoint venture cooperation of this program is feasible.