1. Was Beijing Jeep a success?
After the Chinese reform and opening­up policy led by Deng Xiaoping, China attracted many foreign direct investment because China aims to increase their economic growth, infrastructure, technology and other industries. During that time, the only way a foreigner company could enter the Chinese market was through a joint venture and this is how Beijing
Jeep emerged in 1984.
It was a huge step that an American firm could extend their business to one of the biggest markets in the world, however we consider that Beijing Jeep was not successful in China, because during this period, the economy of China was not stable and the Chinese market was not able to purchase this type of goods.
Also, when the joint venture started, the production of vehicles was difficult compared to their expectation, due to different perspectives related to the production line. One of the main challenges was the foreign exchange to pay for the import of the kits coming from United
States, because the Chinese government did not allow the export of hard currency.
Beijing Jeep could continue their production line because they reached an agreement with the
Chinese government to eventually release hard currency. Besides, they get a high support from them as investment in infrastructure and require ordering Jeeps when government branches needs to purchase vehicles.
Eventually, the dependence of its financial support become successful to Beijing Jeep, until
1995 when the Chinese government decided to cut off their preferences with Jeep over other vehicles manufacturers. As a result, the sales of Beijing Jeep began to fall and the company cannot sustain its