This chapter analyzes a single central government objective: industrial consolidation. This chapter reviews three major auto industry mergers that have occurred over the time. Despite the pressure for consolidation and restrictions on market entry, the number of assemblers in the industry has remained remarkably stable since the mid‐1980s. Even though the central government has insisted that consolidation was necessary, only four major mergers have taken place among passenger car assemblers. Chief among the strategic reasons motivating the acquirees in these mergers were the need to survive and increasing competition among China's largest automakers. As the market share analysis in this chapter has revealed, the problem that China's leaders face is not that the market as a whole is too fragmented, but that production of Chinese‐branded cars is too fragmented.


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    Title :

    The Mergers


    Contributors:

    Published in:

    Publication date :

    2012-01-02


    Size :

    31 pages




    Type of media :

    Article/Chapter (Book)


    Type of material :

    Electronic Resource


    Language :

    English




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