Volvo is one of the biggest and most well known automobile manufactures in the world. It is especially famous for its high quality and function. Geely is a small private enterprise located in ZheJiang province in China. However, such a small enterprise purchased 100% share of Volvo automobile from Ford in 2010. It was one of the most important moments of Chinese automobile industry.

As Japan has Toyota, Germany has BWM and Benz, U.S has GM, China’s automobile industry is able to be lead to the world by Volvo. China then can expand its market worldwide, which is capable of being more successful in the future strategically. Also, both Volvo and Geely will benefit more from attracting more consumers domestically since it is a nominally a Chinese brand. Chinese consumers of course will be willing to buy a domestic brand car rather than cars from other country. It is a chance to Geely, as well as to Volvo. Geely is able to expand its market through Volve’s international influence and advanced technology, while Volvo can convert its loss to profits through China’s big market. The big problem is that how are they going to corporate well with each other so that maximized the profits.

Picture: http://www.themotorreport.com.au/50081/ford-and-geely-announce-volvo-sale

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