M&A between GEELY HOLDINGS AND VOLVO CARS

Andrews, K., 2010. The Concept of Corporate Strategy, 3rd Edition. Financial Times Prentice Hall. [Accessed 13 April 2014]

• Analysis of the target company—is the company a strategic fit as far as size, geographic location, business mix, operational capacity, financial strength and availability for takeover.

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The goal of this consulting report is to analyze the strategy for General Motors. To start, a five forces analysis of the automobile industry was conducted. The five forces include the following factors: competition among rivals, threat of new entrants, supplier power, buyer power, threat of substitutes, and role of complements. Understanding the influence of each of these factors provides insight into the attractiveness of the automobile industry. Such an understanding is necessary for an effective critique of General Motors’ strategy for the future.

Geeli has gained substantial market share of this industry under your leadership over the last decade. With Geeli’s present book assets approaching $400 million Geeli has enjoyed a steady growth in it’s revenue and stable cash flows. Additionally, the Geeli brand is valued at $350 million by the State Finance Bureau of China. Given this brand recognition

A ratio analysis has been performed on Berry’s Bug Blasters using data from the financial statements from the last two years. Ratios can provide clues to underlying conditions that may not be apparent from

General Motors (?GM? or ?the company?) has a rich history longer than a century starting with its corporate organization in 1908. Following its organization, GM acquired its first brand, Old Motor Works, which was followed in 1909 by the purchase of Cadillac for $5.5 million. Two years later, GM organized both General Motors Truck to handle sales of GM?s Rapid and Reliance products and General Motors Export Company to handle export sales out of the US. In 1918, GM purchased Chevrolet Motors. In 1926, GM entered Australia, New Zealand, Japan, Egypt, Uruguay and Argentina through the General Motors Export Company. General Motors Truck became the modern GMC in 1943 when GM acquired the assets of Yellow Truck & Coach. In 1945, GM finally established all of its historical core brands (Buick, Chevrolet, Cadillac, GMC, Oldsmobile, and Pontiac) when the Buick-Oldsmobile-Pontiac Assembly Division, which would be renamed the General Motors Assembly Division in 1965, was formed.

Of these 212 firms, only 156 of these mergers had compustat data on acquirer’s past and future R&D intensity. R&D intensity is derived by dividing the R&D by the total revenues of the firm. After consolidating these 156 mergers we determined which mergers saw a positive change in R&D intensity. Of the 156, 102 mergers saw a positive change in R&D intensity. From this point on we will focus only on these positive changes in R&D intensity and look at how CARs relate to them. The main objective is to look at the sign of the CARs not the magnitude, meaning is the CAR negative or positive, not big or

Chapter 7: Merger and Acquisition Strategy --- The Acquisition and Restructuring of Kia Motors by Hyundai Motors (written by Seungwha Chung and Sunju Park)

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This study discusses Toyota, General Motors’ (GM), and Tesla Motor’s competitive strategies. These three companies are top leaders in the automotive industry, and this paper focuses on what their current strategies are and how they develop and manage their opportunities. The paper will also address what can impact these three companies, how they protect their company from competitors, and some recommendations for each companies.

The company I have chosen is a vehicle manufacturer called Octopus Vehicle’s. They currently have been given the opportunity to supply EU sourced cars and export them to many countries around the world. They have been offered offices based in Spain and Holland and currently have one in the U.K.

China has long been considered a nation that produces poor quality products. All Chinese products have long had “a reputation for shoddy workmanship” in the eyes of overseas consumers and the abysmal failure of the “Landwind SUV, made by Chinese automaker Jiangling Motors,” during its international “safety test that scored 0 out of 5 in passenger-cab protection” surely didn’t create an exception for their automobile products (Dess, Lumpkin, Eisner, 2010). This puts Geely automotive at an extreme disadvantage when compared to their industry competitors (such as Toyota, Chrysler, and Volkswagen etc.) in overseas markets as they will need to work hard to differentiate their brands from the detrimental brand recognition of other Chinese product-based company’s. They have not attempted to remedy this weakness directly (by advertising industry crash test comparisons, promoting the life span of their vehicle in comparison to competitors etc.); however, they have attempted to work around it by focusing on their research and development which increases product innovation and gives Geely unique and hard to imitate competitive advantages. This weakness of perceived poor quality by their overseas consumers will

In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set.

Q: 3 Why do you think GM chose to establish a joint venture with AvtoVAZ, rather than a wholly owned subsidiary? What are the risks associated with GM's joint-venture strategy?