The post-acquisition of Volvo by Zhejiang Geely: Technological catching up, asset-seeking strategies and impact

Résumé:

The acquisition of Volvo Cars by the Chinese carmaker Geely in 2010 provides an interesting example of multinational growth by a private Chinese carmaker. At the corporate level, Geely’s growth path has been characterized by twin trajectories of technological catching up and of international growth, interacting each other. Geely’s inter-wined twin-trajectory of growth represents an original case of multinational corporation from emerging economies.

This study is a follow up study of Balcet et al. (2012). We shed light on the R&D, transfer of technology, its adaptation and upgrading, as well as innovation strategies in the post-acquisition stage. Interviews both from Swedish and Chinese sides of the company are conducted to provide an in-depth case study.

In addition, management, finance, and supply chain issues in the post-acquisition period are discussed. The role of Chinese local governments in the private acquisition process is elaborated, to shed light on the complex institutional relations between the State and private firms in China.