Research On Effectiveness Of Integration About Geely-Volvo Deal

On March 28,2010,Geely and Ford Motor signed an agreement that Geely would merge the all assets of Volvo cars for $1.8 billion,which include three factories,more than 10000 patents and complete system of research,employee system,spare parts supply,sales and service network throughout all the world.As a typical "snake swallows elephant " case of Mergers and Acquisitions,However,the success of mergers and acquisitions did not mean to successful operations,in the face of Volvo global assets,it was very difficult for Geely which have little luxury car operating experience to integrate.There is four questions raised by market: first,Geely acquisition of Volvo is a typical “snake swallows elephant” case of Mergers and Acquisitions,Whether Geely can successfully run Volvo or not;Second,Whether it is able to break through the shackles of Chinese and foreign cultures;Third,how to restrain high cost without job losses;Fourth,how to carry out brand operation and internationalization.In this paper,integration of the Geely-Volvo deal is summarized and analyzed,encompassing financial integration,culture integration,human resource integration and brand operation.We hope to get relevant experience and find out the risks of the enterprise in foreign acquisitions.So that the domestic private enterprise facing foreign acquisitions would acquire some references and revelations.