Geely describes itself as the "poor boy from the countryside", while Volvo is the "rich girl from the city". Geely believes that for the marriage to be successful, certain commitments must be made. Geely therefore strives to preserve Volvo's: 1. Brand Equity 2. Culture 3. Manufacturing and R&D in Europe (to preserve "European-ness") 4. Relationships with Suppliers and Distributors 5. Management Team (use Volvo management to run Volvo, similar in approach to Hong Kong integration: "One Country, Two Systems") 6. Relationship with Labor Union
Dec. 31 , 2009The sixth of the Eight Overarching China Automotive Trends That Are Revolutionizing the Auto Industry concerns the rapidly changing structure of the China automotive market and its impact on the competitive landscape. While many Vehicle Manufacturers have reported robust sales in 2009, what may not be understood or appreciated among those who are observing the growth in sales is that this is a market where quantity of sales should not be confused with quality of sales. The China market is now experiencing what many companies doing business in the United States have come to understand for many years: hyper-competition.
Dec. 21 , 2009