Chinese car makers are keen to become international players on the world stage, and the past 12 months have seen additional steps taken by domestic auto manufacturers to achieve this goal. The Volvo deal negotiated between Geely and Ford and likely to be concluded in 2010 has certainly been the most prominent case of an intended takeover, vastly covered in the media during most part of last year. The agreement on Volvo signifies the supposedly quickest access for a Chinese auto manufacturer to mature technology and international markets: the acquisition of a foreign brand. 2009 has seen another transaction of this nature, namely Tengzhong's acquisition of GM's Hummer brand, also to be finalized and approved this year. Both acquisitions are considered hugely ambitious, and have raised the question about the ability of the Chinese companies to manage and develop these international brands. BAIC has also tried to acquire a renowned brand, Opel. Eventually, it secured the purchase of some core technologies from Saab for the development of self-branded cars - probably a more reasonable and less risky endeavour.

TREND 7: LOCAL VEHICLE MANUFACTURER'S PUSH TO BUILD BRAND EQUITY In fact, the model for development of China's domestic automotive industry was designed to facilitate development of China's industrial base. Provincial governments, with the support of the central government, were encouraged to develop industrial bases to create investment opportunities and jobs in order to accelerate China's economic development.