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1、GlobalcarmakerscouldmanagetheircostsandcapitalinChina—andgainastrategicoptionfortheirglobaloperations—bycontractingoutthemanufactureofwholevehiclestoChinesecompanies.PAULGAOTheMcKinseyQuarterly,2002Number1Facedwiththeprospectofstagnantglobalsalesoverthenextfiveyears,theworld抯bigges
2、tcarmakersarejockeyingforashareofoneofthefewbuoyantnationalmarkets.China抯domesticcarsales,growingatmorethan10percentannually,willprobablyaccountfor15percentofglobalgrowthoverthenextfiveyears.Sofar,globalautomakershavepursuedsuccessfuljoint-venturestrategiesbyinvestingheavilyinassem
3、blyplantsoperatedbyChinesepartners.ButascompetitioninChinaheatsup,anewtackmaybeneededinthequestforprofitablemarketshare.Anasset-lightstrategywouldhavethemajorautocompaniesconcentrateonwhattheydobest—developingproductsandbrands—whilecontractingoutnotjustcomponentsupplybutalsothewhol
4、eassemblyprocesstoChineseautomakersthatcancapitalizeoncompetitivecoststructures.Althoughscalingbackcapitalinvestmentinsuchahealthymarketmightseembold,outsourcingmanufacturingisneitheruncommoninotherindustriesnorentirelyunprecedentedinthisone.Moreover,thenatureoftheChineseautoindust
5、ryandmarketmakesoutsourcingparticularlyattractive.OutsourcingmightalsohelpChineseautomakerstaketheirfirststepstobecomingaglobalmanufacturingresource.Butifthestrategyistowork,globalcarmakersmustbuilduptheskillsoftheseChinesepartners,whichinturnmustembracecontractmanufacturingasamore
6、profitablepathtocreatingagloballycompetitiveindustrythanlaunchingtheirownbrands.COMPETITIONISABOUTTOHEATUPWithsalesof2.1million-plusunitsin2000,Chinabuysmorefour-wheeledvehiclesthanallbutsixothernationalmarkets,yetitspassengercarmarketisstillintheearlystagesofgrowth.IndeedChina,wit
7、honly600,000carsalesayear,hasfewerthan10passengercarsontheroadper1,000people,comparedwith250inTaiwanandmorethan500inGermanyandtheUnitedStates.Butdemand—promotedbybetterroads,newsalesanddistributionchannels,thederegulationoftheautomarket,andChina抯entryintotheWorldTradeOrganization(W
8、TO)—willincreaseasthecount