1,000 Days in Shanghai The Volkswagen Story - The First Chinese-German Car Factory

by Posth, Martin; Travis, Ian

• ISBN13: 9780470823880
• ISBN10: 0470823887
• Edition: 1st
• Format: Paperback
• Copyright: 2008-08-29
• Publisher: WILEY

Summary

Posth arrived in China with a vision. He navigated a steep learning curve, achieved his goals and now shares an insightful, first-hand account of an intriguing journey that included bumps and highlights. 1,000 Days in Shanghai is a breathtaking manual for anyone contemplating a business career in the increasingly vibrant arena of today's China. It is also a personal account, done with great sensitivity, revealing between the lines a deep respect for the spirit that propels China's social and industrial revolution today.Hans Michael Jebsen Chairman, Jebsen and Co., Ltd.To really understand China's economic development, one needs to look at the history of individual projects. This applies in particular to those who are considering a venture on site. This book by Martin Posth is a unique document on the subject: evidence of profound knowledge, didactically sound, with comprehensible conclusionssimply readable!Prof. Heinrich v. Pierer Former Chairman of the Supervisory Board, Siemens AG Former Chairman of the German Asian-Pacific Business Commission Co-Chairman of the German-Chinese Dialog ForumThis book is a must-read for anyone seeking to work in or via China. The personal experiences of a pioneering manager can also help management to see the transformation of China in a new light. Anybody wanting to be successful in China should heed the practical lessons that Martin Posth draws.Prof. Dr. Eberhard Sandschneider Otto-Wolff-Director, Research Institute Executive Officer, German Council on Foreign Relations (DGAP)In establishing the Volkswagen works in Shanghai at the beginning of Deng Xiaoping's reform era, Martin Posth made a breach in the wall behind which the People's Republic of China had dug its trenches up until then. His experiences are useful for anyone wanting to work the Chinese market with any degree of success. The fascinating reading that his report makes, and heeding his lessons, can help any entrepreneur to avoid costly mistakes.Dr. Theo Sommer DIE ZEIT, Editor-at-LargeFor the Chinese, this book by Martin Posth is a historic document on the Open Door Policy for foreign investors. It is a must-read.Prof. Xu Kuangdi Mayor of Shanghai 19952001 Chairman, China Federation of Industrial Economics (CFIE) Co-Chairman of the German-Chinese Dialog Forum

Author Biography

Martin Posth is a former member of the executive management board of Volkswagen AG and Audi AG.

In the mid-1980s, he built up Shanghai Volkswagen together with a team of pioneers. In the 1990s, he oversaw the Asia-Pacific business of the Volkswagen Group out of the regional headquarters in Hong Kong.

In June 1997, Posth was awarded the title of “Honorary Citizen of Shanghai.”

Today, Posth serves as a member of the board of directors of various leading international companies and committees in Europe and Asia.

Table of Contents

Foreword	p. xi
Preface	p. xiii
Abbreviations	p. xv
China's Dream of Detroit-Wolfsburg's Gateway to Asia	p. 1
First sight of the factory in Anting	p. 1
History behind the deal	p. 4
Spurned by the Japanese: Citroen or Volkswagen?	p. 7
Setting the foundation	p. 9
A Volkswagen pioneer for the Middle Kingdom	p. 10
Not a fairyland but an entrepreneur's playground	p. 13
Partnership premier for the group	p. 15
Vision of the future	p. 18
Round the transatlantic world of Volkswagen	p. 21
Quick lessons: Prepare your China engagement thoroughly	p. 24
Culture Shock-Chaotic Beginnings in Anting	p. 25
Arrival in a strange and fascinating world	p. 25
Living conditions in Shanghai then	p. 27
Piano, ballet in Shanghai, 1,000 year-old eggs	p. 29
Shopping, haggling, Hollywood at the Bund	p. 31
Fitting derelict buildings with modern machines	p. 32
Santana in China from below zero	p. 34
Mercury rising	p. 36
Delivery kinks	p. 38
The struggle for change	p. 39
Leadership with "scientific management"	p. 41
Model discussions at the dinner marathon: Santana or Audi?	p. 43
Audis battle Santanas on Chinese ground	p. 45
Quick lessons: Avoid unnecessary start-up problems	p. 48
Talent-The Secret of Our Success	p. 49
Changing a comrade's mindset	p. 50
The forgotten equation	p. 51
Laying the foundation for training	p. 53
Woes of the expatriates	p. 54
Too many Germans	p. 55
Faults and conflicts	p. 56
German expat solidarity	p. 58
Transferring management know-how	p. 59
Deja vu	p. 59
Quick lessons: Forget China if you don't have China-compatible staff	p. 64
Cash Shortages and Risky Financial Maneuvers	p. 65
Messy hand of central planning	p. 65
Budget blowouts and money problems	p. 67
The Chinese accepts higher costs	p. 70
Maiden bonds	p. 73
Quick lessons: Make sure your business in China is profitable	p. 76
"Big Project" Poker	p. 77
Competition	p. 78
Dr. Hahn's ideas for reinforcing the partnership	p. 78
Building container ships	p. 80
Dealing with Beijing, central government	p. 81
Expedition to SAW in Shiyan	p. 82
China's automobile agenda 2000	p. 84
The curse of waiting	p. 87
An "unofficial visit" to Changchun	p. 89
FAW and Volkswagen	p. 90
Quick lessons: Gain in-depth understanding of the nature of competition in China	p. 94
Two Partners, One Dream: The Most Modern Automobile Factory in China	p. 95
Misunderstandings and red tape	p. 95
The battle against mistrust, fear and ignorance	p. 98
The problem with responsibility	p. 100
Big wolf	p. 103
Pioneering work in management	p. 104
Shanghai Volkswagen: Dreaming the same dream?	p. 107
Quick lessons: Create a solid foundation for intercultural cooperation	p. 110
The Open Secret of the Learning Factory	p. 111
Interesting find	p. 113
Paul's intelligent production design	p. 114
Japanese in Shop 54	p. 115
Capacity limits	p. 117
In search of perfection	p. 119
Introducing market mechanisms at the factory floor	p. 121
How to break the "iron rice bowl"	p. 121
Leadership: Encouraging partners to act	p. 124
Quick lessons: Use your "zero hour" in China	p. 126
The Joint Venture and Its Parents	p. 127
The genie in our bottle-the spirit of collaboration	p. 128
Loyalties and conflict	p. 130
Principle of consensus versus pressure "from above"	p. 133
Putting forward one voice	p. 135
Clear words from Beijing and an official complaint from Wolfsburg	p. 136
Media distoritions	p. 139
Quick lessons: Make sure local management has autonomy to act	p. 142
The Santana: Trendsetter for Motoring	p. 143
Map to market	p. 144
Of markets and pricing	p. 145
Fighting central planners	p. 146
Advertising cars, the Chinese way	p. 148
The birth of customer service	p. 149
Dream car	p. 150
Dream Ship and a vision for China	p. 151
An Audi flag in Anting and its consequences	p. 152
Surprise session	p. 153
Quick lessons: Identify a specific and direct path to the customer and build on it	p. 154
The Long March to Localization	p. 155
Fragmented auto supplies industry	p. 156
No compromises	p. 157
Beyond the Bund	p. 158
Pressure for progress	p. 160
Slow breakthrough	p. 162
Rev up from Zhu Rongji	p. 164
Quick lessons: Localization is the key to cornering the market	p. 166
In The Dragon's Den: Politics in Deal-making	p. 167
Big trouble with the horn and the steering wheel	p. 167
A venture is like marriage	p. 170
Power of Shanghai municipality	p. 171
Shanghai Volkswagen runs out of time	p. 172
Waiting for the carrot, or the stick	p. 174
The end of Luo Pu Road	p. 175
Quick lessons: Secure political support for your project	p. 178
Epilogue: At the End of 1,000 Days	p. 179
Report card	p. 180
The factory-a role model of modernization	p. 183
Where East meets West	p. 184
Quick lessons: Enjoy sustained profits from your China operations	p. 186
Endnotes	p. 187
Index	p. 189
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