Friday, December 31, 2010
Doing Businesses in the Chinese Way-IV
China’s Zhejiang Geely Holding Group made a deal with Ford (which has been seeking to sell the money-losing unit since late 2008) to buy VOLVO during the end of March. It will cost $1.8 billion, one of largest foreign brand acquisitions by the Chinese company. But the Geely currently ranks only 10th among companies in China with less than a 3 percent market share in 2009. In China, people prefer foreign brands; therefore, Volvo might expand its market share in China. Currently Volvo sold mere 22,405 units in 2009 while Audi sold a record 157,188 units (1 April 2010, Japan Times).