China's rapidly growing auto market has attracted both domestic and foreign automakers, all eager to seize the opportunities. Over time, they've come to realize that "there are great joys, but also the risk of failure." The principle of "Joint Venture Harmony" has now become a top priority for automotive manufacturers.
Zhang Xin, General Manager of Nanjing Iveco, praised this harmony during the tenth-anniversary celebration on March 30th, stating, “Nanjing Iveco’s success over the past decade is largely due to the deeply integrated management culture between China and Italy, creating an environment of 'Joint Venture Harmony.'†This synergy has been key to its achievements.
"Nanjing Iveco is one of our most dynamic and well-developed joint venture subsidiaries," said the Italian president of Fiat and Iveco in their first public statement to the media, highlighting the company’s strategic importance to Iveco’s China operations.
"Harmonious Culture" Has Become a Rare Resource
Over the past two decades, joint ventures have been a defining feature of China's automotive industry. Except for a few exceptions like Hongqi, Chery, and Geely, most domestic cars are joint venture brands. During this period, there were three major peaks in joint venture development. The first wave included pioneers like Shanghai Volkswagen and Beijing Jeep in the late 1980s and early 1990s. The second wave, represented by Shanghai GM and Guangzhou Honda, emerged at the end of the 1990s. The third peak came around 2002 with companies such as Dongfeng Nissan and FAW Toyota. Nanjing Iveco stands out as a representative of the second wave.
Despite the growth, joint ventures have faced challenges, including conflicts over control, loss of technical support, and market exclusion, leading to many failures. For joint ventures lacking technology, talent, and market access, a harmonious corporate culture has become a rare and valuable resource.
Harmony Leads to Win-Win Outcomes
Throughout China's automotive history, several companies have turned their joint ventures into successful collaborations. At the beginning of Dongfeng Nissan’s partnership, doubts were common, and internal conflicts arose. However, both sides viewed these issues as cultural integration challenges rather than power struggles. This led to the creation of the Nissan Action Plan, which emphasized "people, vehicles, and life" and aimed to "step by step for success." By 2005, after a decline in 2004, sales surged by over 200% in the first ten months.
Dongfeng Nissan is not alone in prioritizing harmony over conflict. On March 28, 2004, Nanjing Iveco launched the high-quality light commercial vehicle "Turin V." Industry experts called it a world-class product developed through international cooperation. Zhang Yan proudly stated, “Turin V is a brand we developed ourselves, and we own the intellectual property rights.â€
For Zhang Xin, Turin V symbolizes the successful collaboration between Nanjing Automobile and Italy’s Iveco. Over the past decade, Nanjing Iveco has developed its own approach to managing conflicts with foreign partners. He explained, “Foreign investors seek profits, and we aim to gain technology and benefits. Our goals are aligned.†He believes cultural differences are natural and that conflicts can be categorized as interest-based or non-interest-based. Through inclusiveness, communication, and cooperation, Nanjing Iveco has built a unique harmonious culture, driving its growth.
In the process of integrating Chinese and Western cultures, both sides have achieved management consensus, developed a unified culture, reengineered modern processes, and extended cross-cultural efforts into market strategies. This has led to a shared win-win situation. Experts believe that Nanjing Iveco’s success is rooted in its "Joint Venture Harmony" culture, positioning it as a leader in China’s light vehicle industry and a model for successful cross-cultural cooperation in Sino-foreign joint ventures.
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