Chrysler Missed the Best Opportunity Entering China Automobile Market In the middle of 1980s, American Chrysler Corporation could have tapped into China automobile market, one with largest population but lowest car occupation rate. Its mistake in the intensified international competition in car field helped German Volkswagen to march into this profitable market. In the middle of 1980s, Chinese car manufacturing industry was still in its infant stage. International car producing giants did not value much of this new market. What they were interested was selling cars to China, but not producing cars jointly with China. It was against such background when the management of Chinese automobile industry was considering purchasing a disposed car assembly line of Dodge 600. When the news was leaked out, Chrysler felt confident that China had no other choices but to cooperate with it. So Chrysler suddenly raised the price of the old assembly line up to $18 million when negotiation started. Chinese representatives made a counteroffer of only $1 million, pointing out straightly that “ it is for our benefit if we buy it, but you gain more because this disposed line is worth penniless if it is not sold, so it is impossible for us to buy an expensive disposed line ” . Chinese representatives indicated Chrysler that they also shopped round and started contacting with Volkswagen. However, it was a pity that Chrysler carelessly missed the message. When Chrysler finally realized that China would choose Volkswagen as its future cooperator, it dropped its offer of Dodge 600 down to incredibly low, 1 US dollar! Obviously, it was too late. The cooperation proposal signing ceremony between FAW and Volkswagen would be held a few days later. It was no doubt that Volkswagen would have a rich return from its cooperation with China and the cars jointly produced by China and German had a significant share at the Chinese car market. Questions: 1. What are the major reasons that Chrysler misses its opportunity entering China automobile market? 2. What is the opportunity cost of Chrysler?