Geely’s Acquisition of Volvo

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Geely’s acquisition of Volvo 1.0 Abstract Geely’s acquisition of Volvo Company is an enormous financial affair to China and the global. On March 28,2010, Zhejiang Geely Holding Group, China's No 10 automaker, sealed a deal to buy ailing Swedish luxury car brand Volvo from US giant Ford for $1.8 billion, including intellectual property. Some one think acquisition of Volvo will improve Geely’s competitive power, and some people believe that in the time of the economic crisis, acquisition of Volvo is high risky. The deal have arisen great interest around the globe as the two companies incorporate two different cultures and operate within different national backgrounds. This report aims to assess whether Geely can make two companies win-win. 2.0 Introduction In 1999, Volvo sold its car division Volvo Cars to Ford Motor Company for $6.45 billion. But Volvo had dropped profits remarkably since the finance crisis in 2008 and Ford couldn’t relive it so that Ford decided to sell its interest in Volvo Cars. Can Geely finish the mission that Ford had not done? 3.0 Basic situation of Geely's acquisition of Volvo Geely is China's top ten enterprises of automobile industry, entered the car in the field in 1997with the total assets of over 14000000000 yuan. For four consecutive years entering the Chinese automobile industry ten strong, it was named the first batch of "national innovative enterprises" and the first batch of "national automobile export base enterprise” Valvo, English name is Volvo, a famous Swedish car brand, the brand of car is the best car in the world. Volvo Car Corp is the largest car company. It is Sweden's largest industrial enterprise group, one of the world's 20 major automobile companies. Ford Motor Co acquired it founded in 1927 in 1999 to $6400000000. However, over the past 10 years, Volvo has not brought the expected profit for Ford, falling
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