Production System of Beijing Hyundai Motor in China: Catch up Strategy for a Latecomer

Abstract:

The success of Hyundai’s operation in the Chinese automobile market is caused by high quality and low cost production strategy. This features a typical low-road strategy based on minimizing worker involvement and maximizing automation, which is a sharp contrast to a lean production system. From the beginning, it is obvious that BHMC struggles to improve its current market position amid fierce competition. In this regard, the company is faced with raising wages and labor disputes which must be modified for this management strategy to have long-term success in the Chinese automobile market. It is difficult to predict how the company can escape from it and become a competitive advantage.