Geelys Acquisition of Volvo: Challenges and Opportunities Harvard Case Solution & Analysis

For more than ten years, the Chinese government aims to develop the automotive industry. The first steps of the government involved the creation of joint enterprises in which the state-owned firms have become partners of foreign private corporations. Most of these joint ventures have been very successful financially. However, the current differences in the preferences of a permanent tension control in joint ventures. Of particular concern is the Chinese government's desire to ensure that his new car industry to take the latest advances in technology. The issue of technology transfer, and how the Chinese government can best support it, has become one of the central issues in the automotive industry in China. From the point of view of the government of China, Geely acquisition of Volvo would be an important step toward the transfer of technology on an ongoing basis. China's Geely operations can quickly and easily take Volvo, advanced security and production. From the point of view of the author Geely, Volvo will allow it to purchase a new set of luxury cars for sale in China, which would fill a gap in the line of automotive Geely. However, Geely ran into a problem that Ford has always lost money in Volvo. How to reverse these losses will be a major challenge for Geely. "Hide
by David W. Conklin, Daniel Cadieux Source: Richard Ivey School of Business Foundation 4 pages. Publication Date: June 17, 2010. Prod. #: 910M57-PDF-ENG

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