BUS804 : International Business Strategy - Geely’s acquisition of Volvo: Can Geely compete in the global car market?

Case Study :

In March 2010, Chinese car maker Geely (a Chinese word meaning lucky) signed a deal to buy Volvo from the US auto giant Ford for US$1.8 billion. The acquisition is considered fresh evidence of foreign direct investment (FDI) being made by Chinese car makers in a bid to gain access to international markets and Western technology. The Volvo deal placed Geely – which was barely known outside of China – in the spotlight. It also raised questions just how ready Geely was to be a major player on the global stage. Do you think Geely’s strategy to acquire a well-established Western automobile manufacturer can help the company to gain competitive advantages in the global car market? And why? Search information (e.g. newspapers and other media outlets) relevant to the case and answer the case question (italic above) through reference to concepts and frameworks introduced in the lecture program.