1,000 Days in Shanghai

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