Bandwidth Quota Exceeded

One of the crucial forms of the expansion of Chinese companies into new markets over the last decade has been the increasing pace and scale of conducted mergers and acquisitions, as well as inter-regional agreements, such as joint ventures. The value of agreements such as mergers and acquisitions, established by Chinese companies worldwide in the year of 2015 reached a record level of $477.2 billion, far exceeding the results of the previous year, what demonstrates the growing openness of the Chinese investors to cooperation with foreign partners. The fields in which Chinese companies have invested the most in recent years are: energy, real estate, finances, automotive, metals, agriculture and technology. The article presents the effects of the merger concluded in 2010 by a Chinese passenger car manufacturer Geely Automobile with the Swedish company Volvo. The presented example of the expansion of Chinese capital in the automotive sector has been one of the most important investments ever made by the Chinese company on the foreign market. The basis of the analysis made by the author were the results obtained from annual financial reports, published by the mentioned companies. They allowed the assessment of changes in the position of the examined Chinese corporation by using such financial and marketing measures as: market share, market value of the company, value of companys revenues, the popularity of the brand and its image. Comparative analysis of the development of these indicators before and after the merger shows that the actions of Geely Automobile, effectively led to the strengthening of the company’s potential, as well as to the increase of its competitiveness on both the domestic and international markets, while its strategic aspirations allow to expect further dynamic growth and development of the company on the international arena.

1. Alon, I., Fetscherin, M., Sardy, M. (2008). Geely motors: A Chinese automaker enters international markets. International Journal of Chinese Culture and Management, 1(4), 489-498. https://dx.doi.org/10.1504/IJCCM.2008.020012
2. Alon, I. (2003). Chinese culture, organizational behavior, and international business management. Connecticut, CT: Greenwood Publishing Group.
   
3. China Autos Report. (2009). China Autos Report Q2 2009. Business Monitor International Ltd.
   
4. China’s Stimulus Package. (2009). China’s stimulus package: A six month report card, A corporate network special report, 2009. London, UK, The Economist.
   
5. EU SME Centre. (2015). The automotive market in China. Retrieved from https://www.ccilc.pt/
   
6. Europe Autonews. (n. d.). Automotive news Europe home. Retrieved from https://www.europe.autonews.com/
   
7. Gallo, F. T. (2011). Business ledership in China. How to blend best western practices with Chinese wisdom. New Jersey, NJ: John Wiley & Sons.
   
8. Geely Automobile Report. (2014). Geely automobile holdings annual report 2014. Retrieved from https://www.geelyauto.com.hk/en/
   
9. Geely Automobile Report. (2015). Geely automobile holdings interim report 2015. Retrieved from https://www.geelyauto.com.hk/en/
   
10. Geely Automobile Reports. (n. d.). Geely automobile holdings annual reports. Retrieved from https://www.geelyauto.com.hk/en/
    
11. Geely Automobile. (2011). Geely automobile corporate presentation 2011. Retrieved from https://www.geelyauto.com.hk/en/
    
12. Geely Automobile. (2010). Geely automobile holdings limited official announcement about Volvo 2010. Retrieved from https://www.geelyauto.com.hk/en/
    
13. Geely Automobile. (2016). Geely automobile corporate presentation 2016. Retrieved from https://www.geelyauto.com.hk/en/
    
14. Geely Sweden Report. (2013). Geely Sweden ab annual report 2013. Retrieved from https://www.volvocars.com/
    
15. Global Geely. (2016). Geely news 2016. Retrieved from https://goo.gl/fgi24q
    
16. Hong, Y., & Mu, Y. (2010). China’s automobile industry: An update. EAI Background Brief No. 500.
    
17. Holweg, M., Luo, J., & Oliver, N. (2005). The past, present and future of China’s automotive industry: A value chain perspective. International Journal of Technological Learning, Innovation and Development, 2(1-2), 76-118.
18. Hopkins, D. (1999). Cross-border mergers and acquisitions: Global and regional perspectives. Journal of International Management, 5(3), 207-239. https://dx.doi.org/10.1016/S1075-4253(99)00014-9
    
19. Lasak, P. (2010). The development of the Chinese automotive industry. Economic Studies / Polish Academy of Sciences. Institute of Economic Sciences, 4(67), 413-438.
    
20. MenadzerFloty. (2016). Retrieved from https://goo.gl/qds7jF
    
21. News Flanders. (2012). Volvo and Geely to set up JV to meet requirements, 2012. Retrieved from https://news.flanders-china.be 
22. OICA. (2016). Retrieved from https://www.oica.net/
    
23. Porter, M. E. (2008). Competitive advantage: Creating and sustaining superior performance. Washington, WA: Free Press.
    
24. Reuters. (2016). Geely-owned Volvo car sales top half a million in record 2015. Retrieved from https://goo.gl/kTfsNO
    
25. Russo, B., Ke, T., Tse, E., & Peng, B. (2009). The eight overarching china automotive trends that are revolutionizing the auto industry. Shanghai, China: Booz & Company.
    
26. San, A. P. (2016). Factors affecting the number of registered automobile insurance in Myanmar based on Bayesian modeling using the MCMC procedure. International Journal of Humanities, Arts and Social Sciences, 2(2), 74-86.
    
27. Sherman, A. J., & Hart, M. A., (2010). Mergers and acquisitions from A to Z (3rd ed.). New York, NY: Amacom.
    
28. Sudarsanam, P. S. (1995). The essence of mergers and acquisitions. New Jersey, NJ: Prentice Hall. PMCid:PMC2143169
29. Sudarsanam, P. S. (2010). Creating Value from mergers and acquisitions: The challenges. New Jersey, NJ: Financial Times Prentice Hall.
    
30. Vasconcellos, G. (1998). Cross-border mergers and acquisitions: The undervaluation hypothesis. Quarterly Review of Economics and Finance, 38(1), 25-45. https://dx.doi.org/10.1016/S1062-9769(99)80102-1
    
31. Volvo Cars. (n. d.). Retrieved from https://www.volvocars.com
    
32. Volvo Group Report. (2014). Volvo group annual report 2014. Retrieved from https://www3.volvo.com/
    
33. Volvo Group. (2015a). Volvo group the third quarter 2015. Retrieved from https://goo.gl/dq8LTy
    
34. Volvo Group. (2015b). Truck deliveries in November 2015. Retrieved from https://goo.gl/dq8LTy
    
35. Weston, F. (1990). Mergers, restructuring and corporate control. New Jersey, NJ: Prentice Hall Pulishing House.
    
36. Weston, F. (1992). Financial theory and coporate policy. New York, NY: McGrew Hill Pulishing House.

Lopacinska, K. (2016). The merger of Geely automobile and Volvo car corporation as an example of the expansion of Chinese capital in the automotive sector. International Journal of Business and Administrative Studies, 2(6), 162-173.