ATG A Chinese Miracle
The ATG JV started with plenty of issues to be resolved among partners. ... Kondo felt that ATG could focus on the OEM market by being the first to produce local piston rings in China and gain competitive advantage as most piston rings for OEMs are imported into China. Chinese partner, Mr Lu felt that the motorcycle piston ring market offers huge market for ATG; however, PPG Mr Thorpe felt that the cost of implementing new technology to service the motorcycle market require high production quantities, which entails increasing costs to increase production capacity of the factory. The real story behind the factory walls Kondo setout to change the mindset of Chinese workers so that they will think the TPM way instead of the SOE way - Kondo wanted workers to work well, motivated by profits, and to encourage workers to develop their own way of thinking. The Chinese workers were uneasy about the new working regime. As a result, there was strong opposition from the Chinese workers, as they are not used to the new working method so quickly. ... Chinese workers felt that working in a JV may not bring about job security, as the retirement age is about 45 to 50. ... Hence, Kondo strict ideas were slowly taking root into the Chinese workers, and there were no increasing hostility from the Chinese workforce. ... Kondo was more concerned about driving the profitability of ATG, and prefers a wait-and-see approach as ATG develops. ... Roller believed the workers will benefit more with training on new technology and products; whereas, Kondo believed Japanese training on management practices are more appropriate for the Chinese workers. ... The JV should emphasized continuous training to all Chinese workers regardless of seniority. ... The challenges of transforming Chinese SOEs through a JV? ... The JV was focused on a profit culture in order to motivate workers; however, Chinese SOEs were still traditionally rooted in their working styles.