process‚ the Chinese car group Geely bought luxury car brand‚ Volvo. The Volvo car brand had been bought over by Ford Motor Company in 1999 for $6.45 billion. After the profits targets were not being met by Volvo‚ Ford decided to sell the Volvo cars brand. The transaction between Ford and Geely cost $1.8 billion holding 100% in the shares and inclusive of all assets. (Zheng & Shi 2013) This overseas transaction was the largest acquisition recorded for a Chinese company. Geely made the step into merging
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Business China’s Foreign Investment Analysis Case Study of Geely Acquired Volvo Zhang Huihui Business Administration Bachelor’s Thesis Degree Programme International Business April 2012 SAVONIA UNIVERSITY OF APPLIED SCIENCES SAVONIA BUSINESS Degree Programme‚ option Degree Programme in International Business Author(s) Zhang Huihui Title of study China’s Foreign Direct Investment Analysis Case Study of Geely’s acquisition of Volvo Car Type of project Date Pages Thesis
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Introduction After a one-year long and difficult negotiation‚ on March28 2010‚ the China Geely Group went where no Chinese auto firm has gone before‚ buying a luxury car brand‚ Volvo‚ for $1.8billion from Ford‚ including the 100% shareholder and the relevant assets. It was China’s largest overseas automotive industry acquisition‚ which was also the first wholly-owned merger. Besides‚ it was the first time for a Chinese own brand to merge a luxury brand. This deal proved to be a most ambitious action
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Management‚ Vol. X‚ No. Y‚ xxxx 1 Geely motors: a Chinese automaker enters international markets Ilan Alon‚* Marc Fetscherin and Marc Sardy Rollins China Center & International Business Department Rollins College 1000 Holt Avenue 32789 Winter Park‚ FL‚ USA E-mail: ialon@rollins.edu E-mail: mfetscherin@rollins.edu E-mail: msardy@rollins.edu *Corresponding author Abstract: On 22 January 2006‚ Shufu Li‚ the Director of International Marketing for Geely Motors‚ was rushing to the check-in counter
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Case study: How Geely waited for Volvo By Pedro Nueno and Gary Liu The story. Li Shufu‚ founder of Chinese automotive maker Geely Group‚ had long wanted his company to buy Volvo‚ the Swedish carmaker. Volvo would provide the innovation‚ branding and technology needed to propel Geely in particular and China’s auto industry in general‚ into global markets. The financial crisis of 2008‚ and the big losses suffered by the US auto industry‚ gave Mr Li an opportunity that was‚ in his words‚ like “a
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– financial institute to achieve strategic success. Ford Motor Company has in recent times lost its market share to emerging Asian companies such as Honda‚ Toyota‚ Hyundai and Nissan. As a new landscape of economic might surfaces‚ new car stereotypes are emerging. Finding a place in these segments is proving difficult for Ford Motors and hence need to change its strategies. Hyper-competition combined with tough economic times has pushed Ford to the edge of insolvency. This paper examines the issues
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GEELY’s ACQUISITION of VOLVO 1. 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 non-luxury cars for its local market in the country since 1998. * Li Shufu was the founder of the company‚ who was basically a poet and has a philosophical attitude towards life. * The time of the case is year 2010. 2. Situational
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Ford Motors. produces light systems for cars and sells them for 100€ each. Full capacity is 20.000 per month‚ but is currently producing 18.000 systems per month for its regular customers. The company reports the following monthly results: Per unit Total Revenue 100‚00€ 1.800.000‚00€ Direct materials Direct Manufacturing Labor Variable Manufacturing OH Fixed Manufacturing OH 25‚00€ 10‚00€ 22‚00€ 3‚00€ 450.000‚00€ 180.000‚00€ 396.000‚00€ 54.000‚00€ Variable Selling Expenses 19‚00€
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STUDY OF MERGERS AND ACQUISITIONS BY ANALYSING THE DEAL BETWEEN GEELY HOLDINGS AND VOLVO CARS 11/23/2013 Group: 06 TABLE OF CONTENTS TOC \o "1-4" \h \z \u 1.EXECUTIVE SUMMARY PAGEREF _Toc350291717 \h 22.INTRODUCTION PAGEREF _Toc350291718 \h 23.DESCRIPTION OF GEELY AND VOLVO AS INDIVIDUAL COMPANIES PAGEREF _Toc350291719 \h 33.1 Geely Holdings PAGEREF _Toc350291720 \h 33.2 Volvo Car Corporation PAGEREF _Toc350291721 \h 34.MOTIVATION FOR THE DEAL PAGEREF _Toc350291722 \h 35. ESSENTIAL TESTS
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CASE STUDY Ford Motor Company Ford Motor Company‚ one of the world’s largest automotive manufacturers‚ has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP)‚ Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together‚ they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies‚ eliminating
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