Through joint ventures with GM and VW, SAIC has gained access to new technology and to well-established car brands that appeal to buyers in China. Its automotive partners have benefited from SAIC’s in-depth knowledge of local customers’ needs and its years of local manufacturing experience. These days, SAIC and its partners are experimenting with alternative fuel sources, advanced engineering, and other innovations to make their cars more efficient, more affordable, and more profitable. Even as SAIC continues to build on these strengths, it is accelerating into a highly competitive world market and must steer around profit-sapping economic potholes for ongoing growth.

1. Why would SAIC form joint ventures with both GM and VW? Why would both GM and VW want to partner with SAIC?
2. Do you agree with SAIC’s decision to continue with the plan to launch a redesigned MG in Great Britain after acquiring the rival that had owned the MG name and factory? Explain your answer.