For more than a decade, the Chinese government had been trying to develop an automobile industry. The government first steps included the establishment of joint ventures in which state companies were partners of foreign companies are privately owned. Most of these joint ventures have been very successful financially. However, the current differences in management preferences creates a continuous tension within the joint venture. Of particular importance was the desire of the government of China to … Read more »

For more than a decade, the Chinese government had been trying to develop an automobile industry. The government first steps included the establishment of joint ventures in which state companies were partners of foreign companies are privately owned. Most of these joint ventures have been very successful financially. However, the current differences in management preferences creates a continuous tension within the joint venture. Of particular importance was the desire of the government of China to ensure that its new automotive industry would introduce the latest advances in technology. Support this issue of technology transfer, and how the government of China’s best, was a central issue in the automotive industry in China. From the perspective of the government of China, Geely acquisition of Volvo is an important step in achieving technology transfer would be ongoing. Geely China operations would be able to quickly and simply adopt the latest Volvo safety features and production. Geely acquisition of Volvo would be the view with a new set of luxury vehicles for sale in China, which would fill a gap in the lineup Geely Automobile. Nevertheless, the challenge saw that Geely, Ford had always lost money in Volvo. How can you reverse these losses would be a great challenge for Geely.
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from
David W. Conklin,
Danielle Cadieux
Source: Ivey Publishing
4 pages.
Publication Date: Jun 17, 2010. Prod #: 910M57-PDF-ENG
Geely acquisition of Volvo: Challenges and Opportunities HBR case solution

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