Crisis-Time Distressed Asset Acquisition

“The 2008 global financial crisis provided Chinese capital with the opportunity to acquire quality assets worldwide. In the automotive industry, there were numerous cross-border acquisitions, such as Nanjing Automobile Group acquiring the British Rover, Shanghai Automotive Group acquiring South Korea’s SsangYong, and BAIC acquiring Sweden’s Saab. The most famous of these was Geely’s acquisition of Volvo.”

“Starting in 2002, Li Shufu had been eyeing Ford’s Volvo. After several twists and turns, he finally achieved his wish eight years later. Li Shufu’s acquisition introduced him and Geely to the world. The changes brought to Geely by this acquisition were evident. Volvo’s three factories, more than 10,000 patents, and complete technology research and development system could feed back into Geely’s tech R&D, forming a balanced product line and complete manufacturing system. The change brought to Li Shufu can be described as “impact.” Volvo’s supply chain, employee training system, safety test center, large-scale testing grounds, and global sales and service network taught Li Shufu to use global business thinking, experiencing the art and wisdom of management in the conflicts and integrations of different cultures.”