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Old 11-30-2019, 11:04 AM   #32
dmitra
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Join Date: Nov 2013
Posts: 7,682
Default Re: Beijing Automotive Industry Holding Introduction

Quote:
Originally Posted by Leo View Post
Dmitra,
I know there are many limitations to a corporate organization chart, but personally I often find it helpful to understand how a company works and how it came to be.
I did not rebuke you for the chart; I appreciated it. I had pointed out the limitations (the "slice in time" comment) because I may state certain facts going ahead that could make your chart look a bit outdated (which you have conceded), and thus it should not make you feel disheartened. We all find charts helpful

Quote:
I read a news message this week that BAIC will transform its Zhenjiang branch into a joint venture with Magna Corp from Canada, so the above chart is already outdated
Yes. That its true. They plan to develop and manufacture high-end electric vehicles under the Arcfox brand, or at least that is the stated intention.

Quote:
...To me it feels BAIC Group in the early form is not quite such a holding, it feels more like a cooperative between (slightly) related industries. I am not in any way an expert in Chinese (business) history, so does this make any sense?
Yes, you have more or less grasped the idea: the pre-1994 setup could be viewed as "production for the nation's or party's sake", having less to do with sound business decisions and more on the lines of "making the nation strong in industry", although they did think about increasing efficiency, thus all the group-forming exercises. After 1992 they explicitly moved towards this "modern enterprise system", meaning a proper corporate/company setup with well-defined financial objectives and metrics such as liabilities, etc.

I believe Erik has toured China extensively in the '70s, '80s and '90s, so his input on this question should be valuable.
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