Essay: Volvo’s growth and stability

Sample Essay

There are different elements appearing in the aftermath of the acquisition deal between Geely and Volvo. From the above analysis we can understand that China and US both have benefited from this acquisition.

Geely expanded the scope of its operations while entering international markets and for Ford it was essential to form a strategy that could save the company form going bankrupt. Nonetheless, the acquisition has many dimensions from the viewpoint o both Geely and Volvo. Geely’s acquisition’s financial planning was supported by Chinese’ financial institutions and regional authorities, because Geely was not so keen to take a huge financial risk of over $2.5 billion due to its financial constraints. To sustain Volvo’s growth and stability in the international market, Geely decided not to bring the company home in the early stages of the acquisition and kept Volvo’s operation facilities in Sweden.

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