On The Development Mode Of International Passenger Car Engineering Center In China From Cross Culture Perspective

In2011，over14million passenger cars were sold in China. China has become thelargest passenger car market in the world. Global passenger car companies own about67%market share in China. To get closer to China customer and win China market aswell as improve the global competition power, global passenger car companiesestablished or will establish local vehicle engineering center in China. From the PESTanalysis, we can find the policy and economic environment of China encourages globalpassenger car companies to set up engineering center in China. Also, Chinese industryis developing and the technology environment of China supports the engineeringcenter set up. In China, the investment mode of those vehicle engineering centers isvarious including foreign company (Japan, France, U.S. etc.) and joint venture(China-Japan, China-France, China-U.S., China-Germany etc.). By using cross culturemanagement theory, mainly through Hofstede’s5dimension analysis method, threetypical global passenger car company’s engineering centers were studied in this paper.These three engineering centers have different development modes based on differentdominant culture. They are the representatives for three culture modes includingForeign culture leading, Chinese culture leading and Chinese-foreign culturecrossed. Each mode has its advantage and disadvantage. This paper analyzed thecause of each mode from cross culture perspective and expatiates on the developmentmode’s effect to the companies. A conclusion was made at the end of this paper. Fromthe conclusion, people can find which mode fits for what kind of company. Thisconclusion could be a reference for other passenger car OEMs who want to improvetheir capability. In the meantime, this paper can be referred to the new entry ofpassenger car company who wants to invest engineering center in China. In this paper,cross culture theory was applied to automotive industry. This paper can be alsoregarded as cross culture theory’s application to technique center.