The Case Study of a Japan-Taiwan Joint Venture Manufacturing Company: The Taiwan Rolling Stock Co.

Using the case study of the Taiwan Rolling Stock Co., ltd (TRSC), a Japan-Taiwan joint venture (JTJV), this study attempts to re-think and suggest a new partnership and management style between Japan and Taiwan in Taiwan. Because of government support, TRSC was established in 2002. The strong point of TRSC is that it is able to cheaply procure materials and, through the support of its parent companies, produce good quality products. However, threatening TRSC are foreign competitors, which will enter the Taiwanese market after the ending of the Industrial Cooperation Program (ICP). The Japanese parent companies recommend that TRSC concentrate on getting a stronger position in the Taiwanese market. However, the Taiwanese partners insist that TRSC must emerge into overseas markets. Although both sides have different policies, based of the mutual trust between Japan and Taiwan, TRSC should develop the railway business in Taiwan and contribute to its local society.