OEM strategies: is contract manufacturing in China safe?
Western carmakers have in the past been encouraged, for political reasons, to partner with local manufacturers in China, even if the commercial sense in adopting that strategy was questionable. For the more risk-averse companies, the wholesale contracting and licensing of the production of models to Chinese contractors offers an alternative strategy with large savings. However, there are risks too in adopting that strategy. Michael Dunne of ARA offers his views.
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