A Study of the Chinese Automotive Internationalisation Strategy - A Case Study of Geely Automobile -

Abstract

What is Geely’s growth strategy and internationalisation level? The main aim of this paper is the analysis of the Chinese automotive internationalisation strategy as a case study of Geely Automobile. China become the largest auto market in the world after the USA since 2009; China"s automobile industry has been in rapid development since early 1990s.<BR> Geely one of China’s top ten auto manufacturers and also among the country’s top 500 firms. The pattern of Chinese automobile industry is supported by the multinational corporations. But Geely (Chery and BYD) is quite special, it has no technology and no cooperative foreign company. Geely has its "own brand" which has been the three big state automobile companies’ wish for many years.<BR> The progress of Geely’s internationalization has began, but is at a initial, but progressing based international standards. However Geely’s rising rate of domestic sale and exportation is quite astonishing, since 1997, when Geely was newly founded, Geely sold 483,000 automobiles, placing it 8th on the list of Chinese automobile manufacturers in 2012. Thus Geely became one of the leading Chinese automobile manufacturers. Geely is the first independent and largest private automobile manufacturer in China. In 2009, Geely acquired Volvo Cars for $1.8 billion from Ford Motor Company. Geely brought 100% stake in Volvo, as well as the related assets (including intellectual property), using this technology to make its own upgraded brand.<BR> Geely"s growth strategy is characterised as active internationalisation, establishing its own brand and differentiation, diversification of exports market and market entry modes from exports and FDI, and M&A strategies. In this paper, Section II analyses the growth strategy of the of Geely Automobile. Section III examines the Geely"s M&A strategy of Volvo, Manganese Bronze, and DSI. Section V provides some concluding remarks.