The topic of the relationship between leadership and organizational performance has attracted great interest for the past decades from authors,researchers and practitioners,The interest in this field is particularly based on the implicit and explicit claims that leadership style is one of the success differentiators of companies in the currently globalized,dynamic and competitive business environment .Globalization coupled with market reforms has enabled businesses to expand their regions of operations and markets to foregin countries in a bid to enhance sustainability and competitive advantage,China is one of the most lucrative investment destinations for majority of the lagest golbal players today,Thus,the intent of this study was to empirically explore the impacts of leadership on organizational performance of leading multinational automobile companies in Chinese automobile industry,this study was prompted by the fact foreign companies are performing exceedinglu well in China while the market share of the local firms is shrinking annually with about the rate of 4%,Hence,the researcher intended to determine the contribution of leadership to organizational performance,This is a quantitative research conducted among 900 managers and employess from leading automobile companies of China,The study found that the leadership style which it has adopted by FDI companies has positive relationship with organizational performance, By the study,it can be found the FDI adopted different leadership style to various departments according to the characters of them,This can be a useful and practical suggestion for local fims and companies which are planning to enter into Chinese automobile industry,Besides,it is concluded that transformational leadership has an advantage over transactional leadership on improving performance.