Automobile Manufacturer Gets Help Developing A China Venture

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A leading global automobile manufacturer was looking to acquire a comprehensive review and assessment of the Chinese regulatory environment and its options for corporate structuring with the intention of studying the existing local market and establishing a low-cost export platform. This was in line with the company's plan of getting into the buoyant China market. To get this assessment and review done, the company sought help from Deloitte, a world's leading business consulting company. To this end, Deloitte went ahead with conceptualizing different structuring options and comparing each option against tax, regulatory and supply chain considerations. Thereafter the feasibility of each option from the perspective of government approval, negotiation dynamics, partner selection and implementation timeline, and the suitability of different locations was determined. Based on the findings, Deloitte made recommendations of the best possible options to the automobile manufacturer's board of directors. The case study further states that fro finding the right solution, Deloitte employed a skilled team, which was an integration of multi-disciplinary and cross-border analysts. Consequently, a detailed China-specific analysis that could be readily integrated into a Western business framework was possible. In addition, Deloitte has also assisted this automobile manufacturer to gain a better understanding of the China business environment, and the way it functions; particularly with regard to negotiation, government interactions, supply chain management and logistics.