Hudak said there is no single approach for doing business in the emerging markets. Companies must develop relationships with the Asian-based manufacturers, he said.
Hudak was part of a panel of experts speaking about the growing markets of China, India and Russia January 23, 2008 during the Automotive News World Congress.
Citing a report from CSM Worldwide, Hudak said that 54 percent of vehicle development worldwide will take place in the Asia-Pacific region by 2013.
” Companies like Chery, Geely, SAIC, First Auto Works and Dongfeng in China and others such as Tata, Mahindra & Mahindra and AvtoVaz are all expanding globally. They will become a significant part of the global marketplace faster than we have seen before, and they will need globally capable suppliers,” he said.
«They want suppliers that can adapt to a new way of doing business and have the drive and capabilities to provide products to the global market quickly.”
To become a global partner, he said, suppliers must understand cultures and corporate strategies and how they differ from the way business is done in the United States or Europe.
He said doing business is different in Asia than in the United States or Europe, where there is a clear line separating business and personal relationships.
«In Asia, business generally grows from the relationship. So strong, established relationships, built over time, are essential.”
Right now, Metaldyne handles much of its development tasks in the United States rather than using home-grown resources in China.
The biggest need, he said, is a local, trained and skilled technical workforce that understands automotive development. We have underestimated the amount of engineering development being added in China.”