Establishing an automotive spare parts Joint Venture in China: the case of Huzhou Metelli-Taixin.

Abstract

This thesis analyses the establishment of a Sino-Italian joint venture in the automotive spare parts industry in China. The main objective of this paper is to identify the reasons, key factors and obstacles for the creation of such a company. Firstly, an analysis of the automotive spare parts industry in China and Italy will be carried out, with a focus on labour costs. This analysis will be followed by a literature review on joint ventures, in particular on the main reasons and obstacles for the creation of this type of company. Finally, all the theoretical aspects of the first two chapters are applied to a real case study of an Italian automotive spare parts company based in Brescia that has recently entered into a joint venture agreement with a Chinese water pump manufacturing company.