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For more than a decade, the government of China had sought to develop an automotive industry. The government's initial steps involved the creation of joint ventures in which government-owned firms became partners of foreign privately owned corporations. Most of these joint ventures were extremely successful financially. However, ongoing differences in management preferences created a continual tension within the joint ventures. Of particular concern was a desire of the government of China to ensure that its new automotive industry would adopt the latest advances in technologies. This subject of technology transfer, and how the government of China could best support it, became a central issue in China's automotive industry.
Volvo's Product Development Practices: Focus on Safety
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In spite of this profitability, the management team was suffering from significant internal tension. The president initiated a leadership development program for the management team, including individual coaching. The program started after a self-assessment on high performing teams but was also due to low employee satisfaction index in the group. The leadership development program lasted one year. Shortly after the completion of the program, a new self-assessment showed marginal improvement.