An auspicious auto deal
It is easy to call Geely's purchase of Volvo Cars a win-win deal. The combination of a European luxury car brand famous for its safety and quality with a fast-growing Chinese automaker excelling in tapping the world's largest auto market looks like a promising formula for future success.
The marriage between Geely and Volvo, largely a result of the global economic recession, is definitely a milestone in the development of not only the two companies but the Chinese auto industry. It marks the largest acquisition of an overseas carmaker by a Chinese company, and is China's biggest foray into the ownership of a big luxury brand. Geely's move is seen as emblematic of the shift in the global car industry's center of gravity from the US and western Europe to China.
The far more exciting part of this story, however, has yet to unfold: How will Geely enable Volvo to continue to build its business and return to profitability?
