文档介绍：MA Case Geely & Volvo
The International Marriage Between Geely And Volvo
On Mar. 28th 2010, a pivotal deal got done that highlights China's growing power: Zhejiang Geely Holding announced it has agreed to pay $ billion for Volvo Cars, which is a part of Ford Motor(F). The transaction consists of $ billion in cash and a $200 million note. As a result, Ford will have some fresh capital to pay down its massive debt load and to focus more on its core operations. Over the past few years, Ford has also sold Aston Martin and Jaguar Land Rover.
Four Processes
.2009
Geely was named as the preferred buyer of Volvo cars by Ford.
.2009
All mercial terms were finalized for the sale of Volvo cars from ford to Geely, after a long and difficult negotiation.
.2010
The definitive agreement was signed in Volvo cars’ headquarter Gothenburg. The sale figure is about $ billion USD.
The deal pleted after the approval of relevant authorities
Basic Information
Zhejiang Geely Holding Group
Ford pany
Volvo
Why Did It Happen?
The reasons behind this case:
’s factor
’s factor
’s factor
Geely’s Factor
There are several reasons :
needs of development strategic.
demands of technology and brand.
needs of improving its world’s popularity.
advanced management concept.
needs of marching into the international market.
Geely’s grassroots impression.
Foreign Top Talent.
The Time And Cost Of Establishing Geely’s Luxury Car Brand.
break the monopoly of foreign car brands in domestic market.
needs of politics, and the Government’s strong support. China's government played a big role in the Geely-Volvo merger. ’s well preparation.
Into Overseas Markets.
sharply decreasing of acquisition price, due to the economic crisis.
On 28 January 1999, Volvo Group sold its business area Volvo Car Corporation to the Ford pan