Automobile Manufacturer Gets Help Developing a China Venture


A major global automobile manufacturer required a comprehensive review and assessment of the Chinese regulatory environment and its options for corporate structuring prior to entering the China market.

The Challenge

With the dual intentions of accessing the local market and establishing a low-cost export platform, the automaker sought a review of structural and operational options so as to best achieve its goals and optimize the outcome.

How We Helped

Deloitte* conceptualized different structuring options, compared each option against tax, regulatory and supply chain considerations, reviewed the feasibility of each option from the perspective of government approval, negotiation dynamics, partner selection and implementation timeline, and reviewed the suitability of various locations. Deloitte then recommended the best options to the automobile manufacturer's board of directors.

*Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. In the United States, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries).


By leveraging an integrated multi-disciplinary and cross-border team, we were able to provide a highly nuanced China-specific analysis that could be readily integrated into a Western business framework. Additionally, we helped the client gain a better understanding of the China business environment, particularly with regard to negotiation, government interactions, supply chain management and logistics.