Geely s china operations would be able to quickly and easily adopt volvo s cuttingedge safety features and production operations. The merger of geely automobile and volvo car corporation. The unlikely marriage of swedish tech and chinese manufacturing might that earned record profits. Chinas geely holding has assumed ownership of a 14. The acquisition prompted the largest profits and most intense technology transfer in geely s history. Managing development plans for both the volvo brand and its own has proven to be quite a delicate balancing act. The deal was signed on march 28 this year, and ratified by the chinese government on july 26, by the eu on july 6, and by the us still earlier. Volvo technology transfer a lifeline for geely reuters. The acquisition prompted the largest profits and most intense technology transfer in geely s.
Introduction to the case this case is about the automotive industry of china the acquisition of volvo by geely a chinese firm geely is an automotive company in china, which was engaged in producing nonluxury cars for its local market in the country since 1998. The company has seen a complete transformation of its business under geely ownership, changing from a purely european firm to a truly global and strong player in the premium car market. Chinas geely completes deal to buy ab volvo stake reuters. Risk diluting the storied swedish marque by sharing technology with geely or let the. However, it hasnt been especially easy for geely to come up with a way to raise volvos prestige in china to match german brands like audi and bmw. While geely is known as a lowcost massmarket car maker, the acquisition of volvo will allow them access to volvo s vast experience, technological knowhow and distribution channels in the west, allowing geely to grow and compete better with other automotive firms. Study on enterprise cultural integration after geelys. Request pdf geelys internationalization and volvos acquisition the recent wave of highprofile acquisitions of western brands by chinese companies has caused consternation around the world.
The geely acquisition of volvo was also one of the first real tests of a chinese firm buying a wellknown brand name with highend technical capabilities and distribution channels, spearheading the increased fdi from asia into europe alvstam et al. But in recent years, it has deepened cooperation between the. Geely bought volvo cars in 2010 from ford motor co, allowing the swedish brand to operate on an armslength basis. Hangzhou, china gothenburg, sweden 2nd august 2010 zhejiang geely holding group co. Challenges and opportunities case analysis, geelys acquisition of volvo. Volvo cars, geely merge combustion, hybrid engine operations. A big step toward geely s internationalization was its acquisition of volvo car corporation in 2010. Volvo is exploring closer ties with shareholder geely in. Volvo cars has been under the ownership of the zhejiang geely holding since 2010. Geely completes acquisition of volvo cars chinaautoweb.
The first steps of the government involved the creation of joint e. This case study looks at geely, a large private chinese automobile man ufacturer, and. Volvo ceo says engine merger with geely saves jobs, costs. The internationalization of chinese firms and negative. Pdf a case study of the acquisition of swedish volvo by. Volvo has set up a very clear plan for its product lineup, with each vehicle being clearly marked according to its class and specification. Geelys internationalization and volvos acquisition. It is clear that after geelys acquisition volvo has made some notable changes. While geely is known as a lowcost massmarket car maker, the acquisition of volvo will allow them access to volvos vast experience, technological knowhow and distribution channels in the west, allowing geely to grow and compete better with other automotive firms. Pc division in 2008, and the acquisition in 2010 of volvo by zhejiang. From the point of view of the acquisition of volvo geely would give a new series of luxury vehicles for sale in china, which could fill a gap in the range of geely automobile. Chinas geely completes acquisition of volvo the seattle.
Reuters the chinese business now one of the countrys biggest automotive groups. Dec 27, 2017 geely holding to acquire cevian capitals shares in ab volvo in an agreement announced today, cevian capital has agreed to sell its entire shareholding in ab volvo volvo or the company and. Pdf catching up strategies and multinational growth. Chinas geely on monday completed its purchase of ford motor cos volvo unit, marking chinas biggest acquisition of a foreign car maker and reflecting the nations rapid rise in the auto world. Its not just how geely handles the untangling of volvos ties with ford in europe that will be critical for the acquisitions success. Geely of china completes acquisition of volvo the new york.
Geely, the chinese car manufacturer, has completed its acquisition of volvo from the ford motor company. A case study of the acquisition of swedish volvo by. Hangzhou, chinabased geely bought volvo cars from ford in 2010. In 2019, volvo cars employed on average approximately 41,500 41,500 fulltime employees. Geely, the chinese car manufacturer, has completed its. Apr 15, 2010 will volvos recent takeover by geely mandarin for lucky prove to be lucky for both companies. Geely holding group, one of the fastestgrowing car manufacturers in china, today announced it has completed the acquisition of 100 per cent of volvo car corporation volvo cars from ford motor company. Doc a case study of the geelyvolvo acquisition wendy. Geely of china completes acquisition of volvo the new. It completed the acquisition of british taxi maker the london electric vehicle company in 20, and acquired a majority stake in british sports carmaker lotus cars in 2017. Challenges and opportunities case study solution, for more than ten years, the chinese government aims to develop the automotive industry.
All eyes will also be on what geely does with volvo in. Chinas foreign investment analysis case study of geely acquired. A case study of the acquisition of swedish volvo by chinese geely. Geely group has been manufacturing its own cars before it owned the swedish passenger car maker volvo cars since 2010, when it acquired the company from ford. While geely is known as a lowcost massmarket car maker, the. Chinese foreign acquisitions aimed for strategic asset.
Chinas geely adds to swedish assets with ab volvo stake. On march 28, 2010, zhejiang geely holding group and ford motor company signed an equity purchase agreement. Volvos nextgeneration compacts will be based upon the cma compact modular architecture platform established by volvo in collaboration with parent company geely. Download the owners manual here if you are looking for geely acquisition of volvo youve come to the right place. Volvo ceo hakan samuelsson explains to automotive news europe how merging the automakers engine operations with geelys will reduce costs and protect jobs.
Pdf geely automotives acquisition of volvo researchgate. Through the acquisition of volvo, geely has strengthened its brand both in china and abroad. Volvo cars looks towards next decade as it celebrates 10. In this acquisition process, the 20 setup of the new joint research center in volvos. Geely automotives acquisition of volvo asian case research.
Aug 02, 2010 chinas geely on monday completed its purchase of ford motor cos volvo unit, marking chinas biggest acquisition of a foreign car maker and reflecting the nations rapid rise in the auto world. The new business will develop nextgeneration hybrid powertrains and. While geely has only captured a small portion of the chinese market, it has expanded into other markets across the globe, such as indonesia, russia and chile. From geelys perspective, the volvo acquisition would provide it with a new set of luxury vehicles for sale in china that would fill a gap in geelys automotive lineup. Will volvos recent takeover by geely mandarin for lucky prove to be lucky for both companies. Geely auto group is a leading automobile manufacturer based in hangzhou, china and was founded in 1997 as a subsidiary of zhejiang geely holding group. The internationalization of chinese firms and negative media. From geely s perspective, the volvo acquisition would provide it with a new set of luxury vehicles for sale in china that would fill a gap in geely s automotive lineup. The presented example of the expansion of chinese capital in the automotive sector has been one of the most important investments ever made by the chinese company on the foreign market. In this acquisition process, the 20 setup of the new joint research center in volvo s.
Volvo cars and zhejiang geely holding group plan to carve out their engine operations and merge them into a standalone unit. Volvo, geely got the access to these technologies directly, and this will shorten the time for geely to develop such by its own. Volvo cars successful transformation in moving up market under the ownership of little known chinese car maker geely is a curious one. Challenges and opportunities case solution,geelys acquisition of volvo. This case looks at the acquisition and postacquisition integration from the point of view of sweedish managers at volvo. Volvo trucks is said to be looking to form closer ties with geely in the chinese market, according to a bloomberg report geely became the swedish. The first measures of government are involved in joint ventures in p. Today, it is one of the most wellknown and respected premium car brands in the world with sales of 705,452 cars in 2019 in about 100 countries. In 2010 volvo cars was acquired by geely from ford. The case of geelys acquisition of volvo in 2010 has been chosen. Zheijiang geely holding companys acquisition of volvo cars was widely viewed with skepticism because of the poor track record of crossborder auto industry. A case study of the acquisition of swedish volvo by chinese geely author. This case looks at the acquisition and post acquisition integration from the point of view of sweedish managers at volvo.
Volvo cars has its eyes firmly set on the future as it celebrates the 10year anniversary of its acquisition by zhejiang geely holding geely on march 28. Apr 21, 2012 the chairman of zhejiang geely holding group co. We have 17 images about geely acquisition of volvo including images, pictures, photos, wallpapers, and more. Aug 03, 2010 new volvo v60 will be built under geely ownership. The purpose of this article is to stimulate ideas for further research on the relations between the internationalization of chinese firms and the media coverage. Geely acquisition of volvo geely acquisition of volvo. The article presents the effects of the merger concluded in 2010 by a chinese passenger car manufacturer geely automobile with the swedish company volvo. At the same time, i will explain how the acquisition has given volvo. In these page, we also have variety of images available. It completed the acquisition of british taxi maker the london electric vehicle company in 20, and acquired a majority stake in british sports carmaker lotus cars in 2017 zgh business is divided into five subgroups. Thomas danborg masters thesis in business administration, mba programme february 2011 abstract the acquisition of the famous swedish volvo by the unknown chinese geely has attracted a lot of attention in the worldwide medias, particularly in sweden and china. The case describes geely automotives strategy to grow from an unknown chinese refrigerator manufacturer into a global international player. Volvo, geely to form standalone engine making business. Dec 27, 2017 geely has snapped up a major stake in ab volvo, adding the swedish truck and plant equipment manufacturer to a portfolio that already includes the volvo cars business.
A big step toward geelys internationalization was its acquisition of volvo car corporation in 2010. While it left the swedish automaker to operate autonomously at first, in more recent years geely and. In summary, the acquisition of volvo by geely does not sound very rational from the conventional wisdom, due to the huge big difference in brand, product specification, custom. The acquisition prompted the largest profits and most intense technology transfer in geelys history. Zheijiang geely holing companys acquisition of volvo cars was widely viewed with skepticism because of the poor track record of crossborder auto industry acquisitions. Pdf the case describes geely automotives strategy to grow from an unknown chinese refrigerator manufacturer into a global international player. Challenges and opportunities case study solution, for more than a year, the federal government of china had actually looked for to establish a vehicle market.
Geely also announced that stefan jacoby, the chief executive of volkswagen group of. Aug 03, 2010 the chinese carmaker zhejiang geely holding group completed the acquisition of volvo from ford motor on monday and named a chief executive to lead the company. The platform assures innovative technologies in the locations of connectivity, electrification. However, geely has the challenge that ford had never lost money on volvo. The wharton school, university of pennsylvania, 18 august, 2010. Volvo trucks may strengthen its ties with geely in china. Doc a case study of the geelyvolvo acquisition wendy zhang. Geelys china operations would be able to quickly and easily adopt volvos cuttingedge safety features and production operations. Geely holding to acquire cevian capitals shares in ab volvo. Challenges and opportunities case solution, for over a decade, the chinese government has tried to develop an automobile industry.
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