Transformation in the Key Market China

Selbstbewusster Mann in formeller Kleidung steht neben einem Auto

How an automotive supplier secured its future viability through strategic new appointments

For us at Steinkellner China Search, these are precisely the moments that define our work: When we are able to support companies like yours in successfully mastering complex transformation processes in a strategically decisive market like China. The automotive industry is facing massive upheavals due to developments such as electromobility. For our client, the challenge was not only to fill a critical leadership position in the short term in this dynamic situation, but also to set the course for the future with strategic foresight. Experience with us how we helped an established automotive supplier revitalize stagnating sales and forge a success alliance for sustainable growth from an urgent challenge.

An established German automotive supplier, generating around 30% of its total revenue in China, was confronted with a critical development: Revenue in the Chinese market was stagnating and even showing declining tendencies. The current technical and political developments surrounding electromobility intensified the challenges for the entire industry. For our client, it was of existential importance to urgently secure its Chinese market. The situational short-term nature and the lengthy, industry-specific implementation processes were often at odds. Management was aware that action was needed, but lacked a clear idea of how the necessary transformation should be orchestrated and which adjustments should be made. The implementation of a new management was thus far more than a personnel decision; it required an explicitly strategic view beyond the next few years.

The risks were considerable: A further decline in performance in the strategically important Chinese market would not only have jeopardized the company’s overall financial goals, but potentially also jobs at the German headquarters, where the China projects are largely processed. In the automotive industry, the ability to deliver in the core markets of the USA, Germany, and China is often crucial for success; weakness in one market can quickly affect others. There was therefore an urgent economic need for action.

Although the objective time urgency was to be classified as very high, it was initially subjectively rated as medium on the client side – a discrepancy that we observe more frequently in practice and which is often related to geographical distance.

The assignment to us as Steinkellner China Search began with filling the position of China General Manager and expanded in the course of successful collaboration to include other key roles in sales and service to drive the transformation holistically. Our motivation for this partnership lay in the enormous complexity of the task and our deep drive to help European companies avoid unnecessarily losing ground in China.

The collaboration was, as typical for our projects, very close and characterized by direct coordination. Manfred Steinkellner intensively accompanied all essential discussions and interviews to ensure a deep understanding and optimal control of the process. The profile for the China management was very clearly defined, which initially simplified the search process.

Within about two months, our team found a hand-picked and precisely fitting talent on-site for the position of China General Manager. The choice fell on a Chinese candidate whose profile exactly matched the requirements: He came directly from the relevant industry as well as the specific product area and could thus start immediately without a long familiarization period, which was a decisive factor given the urgency.

The greatest benefit during our collaboration was, from the client’s perspective, our honest and direct strategic input. We did not limit ourselves to merely presenting personalities, but provided valuable insights and a well-founded opinion on the overall situation and goals in China. This comprehensive consulting approach, supported by our fixed-price policy, reinforced the already existing success alliance in the long term.

After a short period of time, thanks to the new, competent leadership, a significant increase in customer satisfaction in the service area could be observed. This was achieved through the additional service personnel we subsequently recruited, who ensured faster availability and were optimized through better geographical distribution of the teams. We are very pleased that as a result of this positive development, we were also entrusted with expanding and staffing the sales team.

Our competencies that were particularly relevant here included:

  • Our deep China expertise and the ability to act as an intercultural bridge builder.
  • Our proven process that focuses on what a leader must achieve strategically, not just what skills they bring.
  • Proactive project management and the high commitment of our entire team.
  • Transparency, openness, and honesty in communication, even with critical assessments of talent suitability – we see ourselves as advisors by your side.
  • Our approach to take recruiting personally and to see ourselves as an integral part of the client team, working together towards the best result.

The support of the newly appointed General Manager and the assistance with further transformation, for example through the filling of sales and service positions, continues. We remain in contact with the candidate and have already met him in Austria to coordinate the next steps. The new managing director is consistently working on optimizing the service area and will use sales as the second crucial lever to strengthen the market position in the next step.

  • Our ability to think beyond merely filling key positions as a holistic transformation partner and to actively support our clients in designing and implementing transformation processes in China.
  • Our understanding of the “Big Picture” and the competence to act as experts on an equal footing with foresight, not only filling current vacancies but also anticipating and proactively addressing future challenges and opportunities for our clients – especially in the context of changing markets such as e-mobility.
  • The creation of a foundation for sustainable competence building on-site by filling not only the top position but also other crucial roles in our client’s team, enabling long-term successful market development and stability.
  • Our focus on strategic impact through a process aimed at finding leaders who are not only professionally excellent but can also measurably achieve our client’s defined strategic goals in China and drive the necessary transformation.

Your success story could be the next

Is your company facing similar challenges in China? Do you need not just a leader, but a partner who strategically accompanies you in transforming your China business? Let’s talk about how we can forge a sustainable success alliance together with your company.