A Research On The Strategy Of Overseas M & A Of Chinese Automobile Companies

Automobile industry is an important part of our national economy, it has some main characteristic include:the long industry chain, the high relevancy, the wide employment, the powerful stimulating consumption.With the development of the world auto industry, the automobile industry is becoming more and more important in the economic development. And also the development of the world economy and the progress of the society have produced the huge function and the profound influence.In recent years, Chinese automobile industry has made remarkable achievements, but also hidden dangers, such as the continuous expansion of production capacity and competition intensified, making Chinese auto market evolved into the automotive businesses are in the battlefield, coupled with the continuous extension of the product lines by international brands, expansion of the target consumer groups, the cheap car market competition is particularly fierce, especially local brand auto enterprises, survival more difficult. Chinese auto companies either selection or foreign brands joint venture (for example, FAW), or open up foreign markets (such as the Great Wall, or transformation (for example BYD product new energy vehicles) or mergers and acquisitions (such as Geely's acquisition of Volvo).Overseas M & A is one of the important ways to accumulate capital, resources, and expand the market. However, companies merger and acquisition is a market oriented business behavior, the expected benefits under considerable potential for a huge risk. However transaction object is a set of technology, personnel, equipment and market as one of the dynamic assets, the risk of various variable factors are difficult to predict for mergers and acquisitions.Based on this background, this paper aims to give some suggestions to the overseas M & A strategy of local auto enterprises under the new situation and new environment. Through the case study method, inductive method and analysis of domestic automobile enterprises and comprehensive approach how to choose suitable for the automobile enterprises in the acquisition. Through the above research methods, this paper puts forward suggestions on the development of local automobile companies:According to the enterprise's own development strategy, choose the right acquisition strategy, grasp core technology and patents, broaden the procurement and distribution channels, establish a good corporate brand image, pay attention to the industry trends.