THE latest results of trading, marketing and motoring concern Inchcape Pacific show the importance of diversification and flexibility in China ventures.
Partner Toyota saw the writing on the wall, knew that Beijing wanted its car industry consolidated to perhaps five or six players, and terminated the venture to resume control of its mainland drive.
A temporary casualty of the decision was Inchcape's bottom line: profits fell to $394 million from $422 million in the first half.
Inchcape distributed the cars through Toyota Motors South China.
Inchcape benefited from Toyota's brand recognition, and Toyota benefited from its partner's successful distribution network in Hong Kong and its China expertise.
Last year, the venture contributed about $124 million to Inchcape's coffers in the first half. This year, its absence was noted.