How Geely Waited for Volvo
1)For what reasons did Geely want to buy Volvo?
For a very long period of time, Volvo, a famous carmaker, has not been the moneymaker, constantly declining in sales while under Ford leadership. The Swedish origin company lost more than $2.6 billion in just two years (Welch D., March 29, 2010), before it was acquired by Zhejiang Geely Automotive Group (in further text, Geely), a Chinese based enterprise mostly focused on motorcycles, engines, transmissions and automobiles.
Observing Chinese luxury market, it is not hard to conclude that is still booming, leaving much room for new brands development and market positioning. There, Geely has seen its major chance, while thinking how to revitalize Volvo, transforming the brand and offering it to the world. Still, it took some time for Mr. Li to be taken seriously in Ford, which has been also partially aided by recession. As Russo (2009) smartly pointed out, acquiring Volvo represents very ambitious action for Chinese car manufacturer, however, necessary in order to help Chine in becoming world class player in automotive industry. Mr. Li, owner of the Geely, understands how selling cars in China has nothing to do with selling the same car anywhere in the world, which means facing many challenges on the way to win raising and more and more competitive Chinese market.
2)How is Volvo positioned in the Chinese market, compared to Audi, BMW, Mercedes, Volkswagen, etc. (Who are the main competitors now? How do they differ from each other)
Geely believes there is a significant potential for Volvo in the Chinese market. However, to compete major luxury carmakers like BMW, Mercedes or Audi, Volvo needs to be accepted and moreover understood as an Eu...
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Russo B. (December 31, 2009) Ford's Sale of Volvo to Geely Benefits All Parties, Retrieved on April 26, 2014 from http://autonews.gasgoo.com/commentary/ford-s-sale-of-volvo-to-geely-benefits-all-parties-091231.shtml
Shirouzu N. (August 19, 2010) Volvo will Buff its Brand, Retrieved on April 25, 2014 from http://online.wsj.com/news/articles/SB10001424052748703649004575436890983653772
VOLVO (January 9, 2014) Press Releases, Retrieved on April 26, 2014 from https://www.media.volvocars.com/global/en-gb/media/pressreleases/137771/volvo-car-group-announces-december-and-full-year-2013-retail-sales-global-sales-growth-for-volvo-car
Welch D. (March 29, 2010) Geely buys Volvo. Believe it or not, it could work, Retrieved on April 25, 2014 from http://www.businessweek.com/autos/autobeat/archives/2010/03/geely_buys_volv_1.html
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