Chinese auto industry faces major challenges
Print Edition
CHINESE automotive manufacturers are facing great challenges when it comes to quality and innovation. But they have come a long way in 10 years, said Bent Wessel-Aas, senior vice president in Kongsberg Automotive, Drive Control Systems in Asia, at a Shanghai event on the car industry.
He was one of the speakers at “A Closer Look at the Chinese Automotive Industry — Leadership, Productivity and Design in the World’s Largest Auto Market,” a conference attended by nearly 200 people and organized by BI-Fudan MBA, a joint English MBA program between BI Norwegian Business School and School of Management, Fudan University.
China’s automotive industry has doubled in the past 10 to 15 years and become more professional. But it still has a long way to go on innovation and creativity. Some areas of the industry are still stuck in a copycat culture. They need to focus on innovation, said Wessel-Aas.
A talented workforce
He thinks it is of great importance that BI Norwegian Business School-Fudan University MBA creates events like this in order to discuss and learn about this industry from a cross-cultural perspective.
Wessel-Aas said he meets a lot of technical professionals in the automotive industry in China.
“I am very optimistic about the future. But in order to compete in the world auto market, you need to create new products,” he said.
He emphasized the great need for new products and creative business ideas in the Chinese automotive market. China produces more than 20 million cars a year and it is estimated this will increase by millions over the next 10 years. China also faces environmental challenges that are linked to transport and traffic, he said.
The biggest car manufacturers in China are joint ventures between Western and Chinese owners.
“We must keep in mind that the development of this industry in China has been very rapid. Both the US and Europe have taken more than 100 years in order to achieve today’s standards.”
Wessel-Aas said he is certain the quality of pure Chinese cars will improve.
The Chinese market will require Chinese automakers to match or better the quality of cars made by the joint venture companies, he said.
He also said the industry will likely consolidate in coming years.
Chinese automakers in many ways are pioneering the country’s industrial future because it is so big and international, he said, noting many BI-Fudan MBA Program graduates are now working in this industry.
Teaching leadership to people in this industry can contribute to both innovation and creativity, said Professor Jan Ketil Arnulf, the associate dean for the BI-Fudan MBA Program in Shanghai. He believes a cross-national business culture exists in the automotive industry and that this is increasingly established in China.
China will be a world leading manufacturer of cars in the future, said Arnulf.
Leadership and cultural challenges in joint ventures were also important themes at the event.
Those working in management level of the Chinese automotive industry must adapt to the international market and the international leadership culture in order to compete, said Yan Fang Min, general manager at Dongfeng Electronics Technology Co Ltd.
He said the auto industry’s development will be strongly influenced by the fact that some Chinese automakers will move out of China.
Rachel Xiao, talent and competence management director at Volvo (China) Investment Co Ltd, said diversity and respect were core leadership issues in the automotive industry.
“Auto industry leaders must make their employees secure enough to think outside the box and get out of their comfort zone. I believe this will increase innovation and productivity,” said Xiao.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
