Luxe ceo and cofounder curtis lee is will joined volvo as vp. An investigation of the cultural differences and reactions. The acquisition of geely volvo actually represents a new form of acquisition, which is low brand equity acquiring high brand equity. Dec 27, 2017 although they share a name, volvo cars and ab volvo are separate businesses. Nov, 2017 geely, the chinese company currently in charge of both volvo and lotus, has completed its acquisition of flyingcar startup terrafugia, the company announced in a press release monday. Volvo is regarded as the safest car in the world by many. After 2010 when volvo cars was acquired by geely, a strong standalone governance based on the principles. Challenges and opportunities case study solution, for more than ten years, the chinese government aims to develop the automotive industry. Li shufu, chairman of geely holding, said the completion of the deal the first time a chinese carmaker had acquired 100 percent of a foreign rival was a historic day. Geely of china completes acquisition of volvo the new york.
Com chinese automaker geely, which has breathed new life into volvo since taking over in 2010, is adding another storied european car brand to its stable. In these page, we also have variety of images available. Volvo car group annual report 2019 volvo cars investor. Chinas geely adds to swedish assets with ab volvo stake. Beijing zhejiang geely holding group co ltd said on monday it has completed the acquisition of the volvo car brand from ford motor co, the biggest overseas acquisition yet by a chinese automaker. Geely buys stake in volvo trucks, despite china restrictions. The first measures of government are involved in joint ventures in p. Pdf a case study of the acquisition of swedish volvo by.
Chinas foreign investment analysis case study of geely acquired. Of those international luxury brands, volvo is the last. Volvo is most wellknown in the safety design, but also in the environment technology. Dec 27, 2017 zhejiang geely holding group, the chinese company that bought volvo cars in 2010, said on wednesday that it would acquire an 8. Ab volvo did own the cars business until 1999 when it was sold to ford, though this was an uncomfortable fit for the us. Aug 04, 2014 volvo acquisition strengthens terex trucks brand with a new name, new owner and a new commitment to customers, products and dealers, the independent terex trucks remains committed to the long haul.
The knowledge integration strategy analysis after geely. Geelys internationalization and volvos acquisition. In early 2011, many questions remain about the volvo strategy and integration plan for the longterm acquisition. Aug 03, 2010 geely completes acquisition of volvo chinese car maker completes purchase from ford motor company. The recent wave of highprofile acquisitions of western brands by chinese companies has caused consternation around the world. The acquisition of luxe is a step towards realizing that ambition, atif rafiq, chief digital officer at volvo, said in a statement. Doc a case study of the geelyvolvo acquisition wendy. Zheijiang geely holing companys acquisition of volvo cars was widely viewed with skepticism because of the poor track record of crossborder auto industry acquisitions. Volvo and geely case solution and analysis, hbr case study. Geely holding acquired volvo from ford motor company.
Volvo and geely case solution and analysis, hbs case study. A case study of the acquisition of swedish volvo by. Challenges and opportunities case analysis, geelys acquisition of volvo. Geely also announced that stefan jacoby, the chief executive of volkswagen group of. Volvo cars, the premium car maker, today announces the acquisition of the platform, technology, key staff and other assets of luxe, a us based premium valet and concierge service. Volvo completes the acquisition of 45% of dongfeng commercial. This case looks at the acquisition and post acquisition integration from the point of view of sweedish managers at volvo. With the acquisition of volvo, geely holding gained access to a global car dealer network, advanced automotive technology, and management knowledge. Geely completes acquisition of volvo cars a ceremony took place in london today to mark the completion of the purchase of volvo car corporation by chinas zhejiang geely holding group.
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. Geely automotives acquisition of volvo article pdf available in asian case research journal 1901. The deal, agreed in march, marks the us companys last disposal of an. Hangzhou, china gothenburg, sweden 2nd august 2010 zhejiang geely holding group co. Chinese automobile industry 2 cental goverment, local goverment, automaker three main player in the industry production of. Challenges and opportunities case solution,geelys acquisition of volvo. Famous examples are the acquisition of jaguar and land rover by tata motors in 2008 and geely s takeover of volvo cars in 2010 aimed at improving quality, brand and safety in indian and chinese. Geely completes acquisition of volvo cars chinaautoweb.
Geely s china operations would be able to quickly and easily adopt volvo s cuttingedge safety features and production operations. Chinas geely completes acquisition of volvo the seattle times. The strategic acquisition of volvo car corporation by. Chart shows that volvo had remained unprofitable since 2005 taken from wang, lieke.
Volvo s annual sales volume had been dropping since 2005 with the exception of 2007 taken from wang, lieke. Ford acquires volvo car operations world socialist web site. Jan 05, 2015 ab volvo has completed the acquisition of 45% of the chinese automotive manufacturer, dongfeng commercial vehicles co. 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. In early 2011, various questions were left unanswered about volvo s strategy and the long term integration plan for the acquisition. Nearlydead valet startup luxe has been acquired by volvo. Because of their huge difference in product segment, brand, technology and also. 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. This paper examines the value creation on the acquisition of volvo car corp by zhejiang geely holding group. Apr 15, 2010 will volvos recent takeover by geely mandarin for lucky prove to be lucky for both companies. Volvo acquires car valet startup luxe to boost its digital. It is clear that after geelys acquisition volvo has made some notable changes. 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.
China has become the manufacturer of the world in some industries, now making about 70 percent of toys, 60 percent of bicycles, 50 percent of microwave ovens, 50 percent of shoes, clothing and televisions, and 33 percent of air conditioners and mobile phones. This acquisition provides volvo cars with a major boost in the development of digital services that simplify consumer experience. Challenges and opportunities case solution, for over a decade, the chinese government has tried to develop an automobile industry. Zhejiang geely completes acquisition of volvo car corporation. This is a figure slightly less than fords lastyear profits of. Geely acquisition of volvo geely acquisition of volvo. Geely holding to acquire cevian capitals shares in ab volvo cision. 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. Sep 08, 2017 volvos vehicles address various segments in the carmaking business from delivery trucks through to highend luxury vehicles, and this acquisition sounds like its firmly to help develop. Geely of china completes acquisition of volvo the new. Jan 29, 2015 volvo completes acquisition of 45% of dongfeng commercial vehicles in commercial vehicles by motorindia january 29, 2015 at 1. Volvo parent geely acquires flyingcar startup terrafugia.
349 37 32 837 1259 21 1332 230 513 1223 534 261 1598 1467 407 1074 1666 1350 161 1640 367 638 381 436 282 1353 63 137 1327 816 70 1390 976 1277 859 185 821 237 672