Foreword xi
Preface xiii
Abbreviations xv
Chapter 1: China?s Dream of
Detroit?Wolfsburg?s Gateway to Asia 1
First sight of the factory in Anting 1
History behind the deal 4
Spurned by the Japanese: Citroën or Volkswagen? 7
Setting the foundation 9
A Volkswagen pioneer for the Middle Kingdom 10
Not a fairyland but an entrepreneur?s playground 13
Partnership premier for the group 15
Vision of the future 18
Round the transatlantic world of Volkswagen 21
Quick lessons: Prepare your China engagement thoroughly 24
Chapter 2: Culture Shock?Chaotic Beginnings in Anting
25
Arrival in a strange and fascinating world 25
Living conditions in Shanghai then 27
Piano, ballet in Shanghai, 1,000 year-old eggs 29
Shopping, haggling, Hollywood at the Bund 31
Fitting derelict buildings with modern machines 32
Santana in China from below zero 34
Mercury rising 36
Delivery kinks 38
The struggle for change 39
Leadership with ?scientific management? 41
Model discussions at the dinner marathon: Santana or Audi?
43
Audis battle Santanas on Chinese ground 45
Quick lessons: Avoid unnecessary start-up problems 48
Chapter 3: Talent?The Secret of Our Success 49
Changing a comrade?s mindset 50
The forgotten equation 51
Laying the foundation for training 53
Woes of the expatriates 54
Too many Germans 55
Faults and conflicts 56
German expat solidarity 58
Transferring management know-how 59
Deja vu 62
Quick lessons: Forget China if you don?t have
China-compatible staff 64
Chapter 4: Cash Shortages and Risky Financial Maneuvers
65
Messy hand of central planning 65
Budget blowouts and money problems 67
The Chinese accepts higher costs 70
Maiden bonds 73
Quick lessons: Make sure your business in China is profitable
76
Chapter 5: ?Big Project? Poker 77
Competition 78
Dr. Hahn?s ideas for reinforcing the partnership 78
Building container ships 80
Dealing with Beijing, central government 81
Expedition to SAW in Shiyan 82
China?s automobile agenda 2000 84
The curse of waiting 87
An ?unofficial visit? to Changchun 89
FAW and Volkswagen 90
Quick lessons: Gain in-depth understanding of the nature of
competition in China 94
Chapter 6: Two Partners, One Dream: The Most Modern
Automobile Factory in China 95
Misunderstandings and red tape 95
The battle against mistrust, fear and ignorance 98
The problem with responsibility 100
Big wolf 103
Pioneering work in management 104
Shanghai Volkswagen: Dreaming the same dream? 107
Quick lessons: Create a solid foundation for intercultural
cooperation 110
Chapter 7: The Open Secret of the Learning Factory
111
Interesting find 113
Paul?s intelligent production design 114
Japanese in Shop 54 115
Capacity limits 117
In search of perfection 119
Introducing market mechanisms at the factory floor 121
How to break the ?iron rice bowl? 121
Leadership: Encouraging partners to act 124
Quick lessons: Use your ?zero hour? in China 126
Chapter 8: The Joint Venture and Its Parents 127
The genie in our bottle?the spirit of collaboration
128
Loyalties and conflict 130
Principle of consensus versus pressure ?from above?
133
Putting forward one voice 135
Clear words from Beijing and an official complaint from
Wolfsburg 136
Media distortions 139
Quick lessons: Make sure local management has autonomy to act
142
Chapter 9: The Santana: Trendsetter for Motoring 143
Map to market 144
Of markets and pricing 145
Fighting central planners 146
Advertising cars, the Chinese way 148
The birth of customer service 149
Dream car 150
Dream Ship and a vision for China 151
An Audi flag in Anting and its consequences 152
Surprise session 153
Quick lessons: Identify a specific and direct path to the
customer and build on it 154
Chapter 10: The Long March to Localization 155
Fragmented auto supplies industry 156
No compromises 157
Beyond the Bund 158
Pressure for progress 160
Slow breakthrough 162
Rev up from Zhu Rongji 164
Quick lessons: Localization is the key to cornering the market
166
Chapter 11: In The Dragon?s Den: Politics in
Deal-making 167
Big trouble with the horn and the steering wheel 167
A venture is like marriage 170
Power of Shanghai municipality 171
Shanghai Volkswagen runs out of time 172
Waiting for the carrot, or the stick 174
The end of Luo Pu Road 175
Quick lessons: Secure political support for your project 178
Epilogue: At the End of 1,000 Days 179
Report card 180
The factory?a role model of modernization 183
Where East meets West 184
Quick lessons: Enjoy sustained profits from your China
operations 186
Endnotes 187
Index 189
