An Analysis On Motivation And Performance Of Geely Acquiring Volvo Cars

Chinese automobile companies experience strong inferiority in the last decade.Under such situation,the only way to embrace a rapid growth is to implement cross-border M&A.In recent years,M&A has become more frequently among Chinese automobile companies,however,few succeed.Thus,Geely's successful acquisition of Volvo Cars is far more important.In addition,whether Geely got what it want and whether this acquisition made positive impact on Geely after the acquisition are labeled with question marks.In order to find the answers to questions,this paper analyzed the motivation of Geely Acquiring Volvo Cars,financial performance based on Geely's annual reports and non-financial performance after the acquisition.This thesis is divided into five chapters.Chapter one briefly describes the background,importance,objective and approaches of the research in this paper.Chapter two gives a relatively comprehensive review of the theoretical basis and summarizes former scholars' works.Chapter three elaborates the whole events and analyzes the motivation of Geely acquiring Volvo cars.Chapter four gives a thorough analysis of Geely's financial and non-financial performance.Chapter five summarizes the whole paper and gives several suggestions to all the Chinese companies that might complete cross-border mergers and acquisitions in the future.This paper found that after the acquisition,even though Geely's financial performances were not so well,which can be illustrated by the solvency,profitability and operation ability.However,Geely has achieved several promising progress in other aspects,including its brand image,R&D capability and market share.All above considered,it is appropriate to say that Geely's acquiring Volvo Car is a success.