Transformation in the key market China

Selbstbewusster Mann in formeller Kleidung steht neben einem Auto

How an Automotive Supplier Secured Future Viability Through Strategic Replacements

At Steinkellner China Search, these are the moments that define our work: supporting companies like yours in successfully navigating complex transformation processes in a strategically critical market like China.
The automotive industry is facing fundamental upheavals, driven by trends such as electromobility. Amid this dynamic environment, our client faced a dual challenge: filling a key leadership role in the short term while setting a long-term strategic course.
Explore how we helped a well-established automotive supplier reignite stagnating sales and turn an urgent challenge into a strategic success alliance for sustainable growth.

An established German automotive supplier, generating approximately 30% of its total revenue in China, faced a critical development: revenues in the Chinese market were stagnating with early indicators of negative development. The broader pressure of technical and political developments concerning electromobility further intensified the challenge for the entire industry.
For our client, it was strategically essential to stabilize and secure its China business. However, the tension between the urgent need for action and the typically long implementation cycles of the automotive sector made it difficult to respond effectively. While the management recognized the need for transformation , it lacked a clear strategy and vision for the required strategic adjustment. Implementing new leadership in China was therefore not simply a personnel decision – it required a well-defined, future-oriented strategy.

The situation presented notable risks: a continued decline in China’s performance threatened not only the client’s financial targets but also the security of jobs at the German headquarters, where much of the China business was managed. In the automotive industry, success often relies on consistent performance across the core markets of the USA, Germany, and China. Weakness in one region can quickly affect others.

While the urgency was objectively significant, it was not immediately recognized as such by the client – a discrepancy we often observe in practice, typically influenced by the geographical distance.

Our engagement with this client began with the strategic hiring of a China General Manager and, thanks to a successful collaboration, expanded to include additional key roles in sales and service ensuring a holistic approach to the transformation process. Our motivation for this partnership was not only driven by the complexity of the challenge, but also by our deep commitment to supporting European companies in maintaining their competitive position in China.

As is typical for our projects, the collaboration was marked by direct, ongoing coordination. Manfred Steinkellner accompanied all key discussions and interviews to ensure deep contextual understanding and precise process control. The profile for China management was clearly defined from the outset, which initially facilitated a focused and efficient search.

Within just two months, our team successfully identified and placed a precisely fitting talent on-site for the position of China General Manager. The selected executive, a Chinese national, matched exactly the requirements: he had a proven track record in the relevant industry and specific product segment, enabling him to begin immediately without an extended onboarding period. Given the urgency of the situation, this proved to be a decisive factor.

From the client’s perspective, the greatest benefit of our collaboration was our honest and direct strategic input. Beyond presenting candidates we provided valuable insights and a well-founded perspective on the broader situation and strategic goals in China. This comprehensive consulting approach, backed by our fixed-price policy, further strengthened the long-standing success alliance.

Soon after the new leadership took over, a significant increase in customer satisfaction within the service division was observed. This improvement was driven by additional service personnel we subsequently recruited, ensuring faster availability and broader regional presence through optimized team distribution. We are pleased that, following this positive development, we were also entrusted with expanding and staffing the client’s sales team.

Key competencies that contributed to this success included:

  • Our deep China expertise and ability to facilitate cross-cultural understanding
  • Our proven methodology focused on strategic impact, not just qualifications
  • Proactive project management and full commitment of our entire team
  • Transparency and honest communication, including critical assessments of talent suitability – we act as trusted advisors, not just recruiters
  • A deeply personal approach to recruiting: we see ourselves as an integral part of the client’s team, working toward a shared goal

Our support for the newly appointed General Manager and the broader transformation process continues. This includes further staffing in both sales and service. We remain in regular contact with the candidate and recently met him in Austria to align on next steps.
The new General Manager is now focused on further optimizing the service structure and will next turn his attention to sales leveraging it as a second key driver to strengthen the company’s market position in China.

  • Our ability to think beyond simply filling leadership role, acting as a strategic transformation partner who actively supports clients in shaping and implementing change processes in China.
  • We engage with our clients as equal partners, not only filling current vacancies but also anticipating future challenges and opportunities – particularly in evolving markets such as e-mobility.
  • By staffing not only the top leadership role but also other critical positions within the organization, we help lay the foundation for long-term competence, stability, and market development
  • 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 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.