• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Volvo and Geely: The Unlikely Marriage of Swedish Tech and Chinese Manufacturing Might That Earned Record Profits

Volvo and Geely: The Unlikely Marriage of Swedish Tech and Chinese Manufacturing Might That Earned Record Profits

January 29, 2018
Forbes

In its first ever stopover in Hong Kong for its 45,000 nautical mile lap around the globe, Volvo has blanketed the former site of Kai Tak airport with its latest models of cars, a virtual reality test track with Scandinavian scenery, and learning labs about both the vehicles and the race boats.

How they got from roadway to waterway — an unlikely link for a Swedish car maker that was also rescued by an unlikely Chinese buyer seven years ago. At the time, Volvo Cars was owned by Ford Motors, which was suffocating under the financial crisis and aftermath of the "cash for clunkers" experiment in 2009 — a failed car allowance rebate system. The U.S. federal program had intended to provide economic incentive for consumers to purchase more fuel-efficient vehicles, trading in their gas guzzlers. However, what was intended to provide stimulus to auto sales, quickly turned into a cash drain on Uncle Sam.

Industry consolidation

With Ford Motor at the brink of ruin, CEO Alan Mulally began divesting assets including Jaguar, Land Rover, Aston Martin, Volvo and reduced its stake in Japan's Mazda. Volvo Cars quickly found itself sold for $1.8bn to the highest bidder — billionaire Li Shufu — in the largest overseas acquisition by a Chinese automaker. "Our evolution into a global company, that would not have been possible without the support from Geely," says CEO Hakan Samuelsson. "They have been a very good owner for the company, quite opposite of what everyone thought at the beginning."

Li was and remains the chairman of Zhejiang Geely, the first non-state owned carmaker when it launched in 1997. Geely is the Chinese word for lucky, but its early renditions were anything but. Li single handedly scrapped three batches of poorly designed and built models before finally arriving at one that met his expectations. It wasn't until 2002 that he released the four-door subcompact sedan — Ziyoujian — known in English as "Freedom Ship" or "Free Cruiser." It was the first Chinese automobile ever to appear at an American auto show, but was actually designed by South Korea's Daewoo Motor — a sign of things to come for a brand that would ultimately recognize the value in outside partnerships.

It was around this time that Li said he started thinking about owning Volvo, his personal favorite car maker, one day. "It's a very good match because there is respect from both sides," Samuelsson describes the relationship. "Li is a passionate owner, not that interested in quarterly figures, but the long term strategy in our cars."

Read full article

RELATED CONTENT

RELATED VIDEOS

Business Strategy Alignment Global Supply Chain Management Automotive High-Tech/Electronics
KEYWORDS Automotive Business Strategy Alignment Global Supply Chain Management High-Tech/Electronics
  • Related Articles

    Could Volvo's Fortunes Revive Under Chinese Control?

    Bird Flu Might Once Again Take a Bite Out of KFC's China Profits

    Status, Perception of Women Changes in Chinese Manufacturing

Forbes

Supply Chain Disruptions Major Threat to Share Prices of Businesses

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Sees Fast Rollout of J&J Vaccine; Astra CEO Defends Delivery Shortfall

    Coronavirus
  • West Coast Port Congestion

    Shippers Need Alternatives to West Coast Port Congestion

    Logistics
  • Mexico

    The Near-Shoring Trend: Will China’s Loss Be Mexico’s Gain?

    Logistics
  • Robotic automation

    Autonomous Supply Chains Are on the Horizon

    Coronavirus
  • Crisis at Sea

    Ship Giant Maersk Bids Farewell to New, Fossil-Fuel Only Ships

    Logistics

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
Honeywell Intelligrated Infor Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Ports America
Purolator QAD Precision Red Classic
Riskmethods Snapfulfil TGW Systems
Transportation Insights Watson Land Company Westfalia Technologies
Workjam Yang Ming  
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing