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Extra resources for American Wheels Chinese Roads
One still sees this in Chinese state companies today. A typical executive’s office is large and neat and well-appointed. C. One thing the Chinese delegates from SAIC did not need reminding about was that they had GM and Ford exactly where they wanted them: in an epic race. Ford was quietly confident. Its prize horse was the all-new Mondeo sedan. Ford’s brightest engineers worldwide had gathered together to create a “world car” (“Mondeo” originating from the Latin mundus), a car that appealed not only to customers in America but also to those in Europe and other markets.
They decided to waive the 150-percent duty on imported cars for this special class of buyers. Foreign joint ventures were permitted to import cars duty-free. That policy triggered a frenzy of activity. Soon, hundreds of new Chinese “consulting companies” sprouted up in southern China near Hong Kong. Their business: formation of “paper” foreign joint venture companies. The process was simple. The consulting companies would identify a foreign company name and address already inside China, pair it with a Chinese firm’s name, and then register a new company.
With Smith’s drive for a more global presence came new appointments and more money. Smith named Louis Hughes as vice president of international operations in Geneva. Many powerful people at GM headquarters remained very wary about China, given the nasty stings in Shenyang and the fiasco at BeiNei. But Smith ultimately approved a budget large enough for Swando to shift from his offshore perch in Hong Kong, the original headquarters of GM Asia Pacific, to a modest foothold in Shanghai in early 1995.