Gaining a competitive advantage through acquisitions in the automotive industry: Chinese experience

Currently, the global automotive industry is facing profound changes; many companies need a process of synergy in order to create a new development paradigm to maintain and increase leadership. The article examines the Chinese diversified group Zhejiang Geely Holding Group Co. Ltd., expanding its global manufacturing presence and gaining a competitive advantage. We studied the history of the company’s development, paying special attention to the takeover of Volvo Cars. Since the successful acquisition of Volvo Cars in 2010, synergies between the companies have gradually emerged. The SWOT analysis revealed the main strengths, weaknesses, opportunities, and threats of the transaction. In addition, it is revealed that the policies implemented have turned Geely into a leading independent brand in China, a brand capable of meeting the competitive needs of the automobile market (including new energy sources).