On the green, Chinese meadow
Hurdles to the new plant
As the Chinese automotive market begins to move away from the combustion engine, the air is getting thin for foreign OEMs. A leading German car manufacturer decides to take a bold step: entering the Chinese market with the first plant solely for electric vehicles. The path to the goal is not a sprint. It will be a hurdle race.
Together with a Chinese partner, a new plant is to be built on a greenfield site.
The goal: automotive production with all trades, including in-house development, high-voltage batteries, press shop, IT infrastructure, automation and a sustainability concept. And with a planned 3,000 employees. Getting there is only possible in a joint venture with a Chinese partner.
Niels Schumann gets involved in the planning and draws on his experience in China and other markets in setting up companies abroad.
Many hurdles are known right from the start
City, provincial and national governments have a major influence on the progress of the project, the production licence and the market launch of the vehicles. Many obstacles must also be overcome during the construction of the factory: Electricity, water, road construction, supplier park, logistics concepts - all of these need to be agreed and realised with government representatives.
Erosion halfway
In the middle of the project, Niels Schumann and his team then faced a completely new challenge: while the company was being set up, the Chinese automotive market eroded. Planned volumes and price expectations for the vehicles are suddenly no longer realistic. Even before the first body part is assembled, the entire project is in jeopardy.
The joint venture agreement must be renegotiated. The planned company is reorganised and restructured before it actually goes into operation. This has a major impact on personnel, financing plans, board decisions and the future course of the company.
Re-think, re-plan, re-act
Under the leadership of Niels Schumann, task forces are set up that start with efficiency programmes. Costs are optimised and measures are implemented in all areas of the company. New processes ensure the plant's operational capacity to act. A corporate culture is established and good contacts with government representatives and the Chinese media are cultivated.
Finally, all shareholders are taken along on the journey to the goal :
The first e-vehicles roll off the production line
Despite all the hurdles and unexpected difficulties, the plant in China is completed and commissioned on schedule. An investment worth billions begins to pay off.