Research On The Multinational M&A Of The Foreign Investment In Chinese Automobile Industry

Discovering how to deal with the multinational merger & acquisition in the automobile industry in China is the purpose of this paper. To realize this purpose, author takes theoretical and practical method, defines the status of automobile industry, defines the meaning of multinational merger & acquisition, defines the incentive theory of multinational merger & acquisition, thoroughly analyzes automobile industry organization and automobile industry environment in China, and discovers the incentive of multinational merger & acquisition in China. Seen from the research of merger & acquisition in automobile industry at home and abroad, it always attach importance to the trend of merger & acquisition and post- merger integration, but the research about incentive and effect of merger & acquisition is much less. Owing to this need, base on the theory of merger & acquisition, link with the development of automobile, author thoroughly analyzes the incentive of multinational merger & acquisition in the automobile industry in China, thoroughly analyzes the effect and resolution in the multinational merger & acquisition.The research results of this article are: In recent years, because of the lagging of the world automobile industry and the overproduction, international giant companies focus on China which has large market and fast economy development. The trend of the multinational M&A of the foreign investment becomes obvious day after day. The reason why those giant companies choose China's automobile industry is that, on one hand, we have abundant production factor supply with high quality and large automobile market demand, they can find excellent environment and favorable policy;on another hand, they can occupy Chinese automobile market rapidly, purchase the low-price assets and get the advantage from contest. The creationary results of this article is use the industry structure theory to made the deep analysis, use SWOT analysis matrix to analyze the industry environment of automobile industry in China;Use material case to summarize the development of multinational merger & acquisition in the automobile industry in China, systemic analyze the incentive , pattern and effect of multinational merger & acquisition in the automobile industry in China.The conclusion of this article is: through the analysis of the effect and incentive multinational merger & acquisition in the automobile industry in China, indicate onone hand multinational merger & acquisition bring some positive influence: it make full use of national capital, change the structure of national automobile enterprise ownership, concentrate the automobile industry concentration degree, optimize the automobile organization, improve the industrial competitiveness of automobile;On the other hand, multinational merger & acquisition bring some negative influence: it decrease the state asset, restrict the development of national automobile industry, form the monopolization of automobile industry in China, and put forward some measures to resolve it.