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Alliances and Joint Ventures in Indian 2 Wheeler Industry
&Mergers and Acquisition in Global 4 Wheeler Industry
SIBM Bangalore
Hero Honda Joint Venture
HERO HONDA
• Hero Group and Honda motor company formed joint venture in 1984.
• Hero Honda was formed with 26% stake by Munjal family and 26% stake by Honda group.
• Munjal family had their flagship company as Hero cycles Limited.
• Honda group had expertise in two wheeler segment and it was significant player in international market.
HERO HONDA
• The joint venture was formed when Indian government allowed foreign companies to enter in India through joint venture route in 1984.
• Honda was technological partner in Hero Honda. Hero still pays royalties to Honda.
• The venture existed till 2010, when Honda opted to move out of joint venture.
• The company established itself as largest two wheeler manufacturer in India.
HERO HONDA
SYNERGIES• The four stroke engine technology was brought by
Honda which led to development of successful models.
• Honda have the competence in engines. It was rightly leveraged by Hero in Hero Honda.
• Hero utilized its distribution network and marketing channel effectively.
• Company had been market leader in non premium two wheeler segment.
HERO HONDA SPLIT
• Rising differences between Hero and Honda led to split of Hero Honda.
• Reasons-– Reluctance to freely share technology by Honda– Uneasiness by Indian partner over large royalties
to Honda– Refusal of Hero Honda to merge its spare parts
business with HMSI(Honda Motors and scooter India)- a fully owned subsidiary of Honda.
HERO HONDA SPLIT
DEAL-• Mujal family led group established SPV to buy
out Honda’s entire stake (26%)• It will pay over $1 billion to Honda which is at
discount of 30-50 % compared to current market price of 26% stake.
• Remaining payment will be done through royalties spread over future.
HERO HONDA SPLIT• REACTION OF STOCK MARKET( DEC 2010)
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HERO HONDA SPLIT
POST SPLIT PERFORMANCE-
• Hero Moto Corp’s performance have improved post merger.
• It recorded highest ever monthly sales at 5,56,644 units in May, registering a growth of 11.28%.
Year 2012 2011 2010 2009 2008Return On Net Worth(%) 55.43 65.21 64.41 33.72 32.41
Bajaj and Kawasaki’s Alliance
BAJAJ KAWASAKI
• Kawasaki and Bajaj Auto have quite a long history of working together.
• The two auto firms joined hands long back in the year 1984 when Kawasaki agreed to provide technical assistance to Bajaj then known as Kawasaki Bajaj.
• The association still exist between two companies though Bajaj and Kawasaki market their own brands.
• Bajaj still pays royalties to Kawasaki for models like platina and boxer.
BAJAJ KAWASAKI
SYNERGIES• The alliance have been beneficial to Bajaj. It helped
company establish in two wheeler motor cycle segment.
• Kawasaki on the other hand, uses existing distribution channel of Bajaj to market its premium bikes.
• Also Low cost structure of Bajaj allows Kawasaki to source from Bajaj.
• Bajaj have been successful in transforming itself from scooter segment to motorcycle segment.
BAJAJ KAWASAKI
• Timeline of vehicle launchYEAR Lunch
1984 Bajaj to enter 100cc motorcycle segment from scooter
1987 Bajaj-Kawasaki-RTZ
1991 Bajaj made foray into 4 stroke engines with Kawasaki (Kawasaki 4S)
1998 Kawasaki sourced ‘Kawasaki caliber’ from Bajaj Waluj plant for export purpose
2001 Kawaski Bajaj Eliminator
2002 Boxer Model launched with K-TECH engine of kawasaki
BAJAJ KAWASAKI
• Bajaj along with Kawasaki have entered into tri alliance with KTM-second largest motorcycle manufacturer in Europe.
• Bajaj launched KTM Duke 200 and Kawasaki Ninja 650R model, both in premium segment.
• Bajaj have 47.18% stake in KTM situated in Austria.• Future strategy of Bajaj is to focus on non
premium vehicles while leveraging its low cost structure.
Effect of alliance with KTM
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Mahindra’s Acquisition of Kinetic
Mahindra and Mahindra
• M&M is one of the leading tractor brands in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of over 25 years.
• In recent times the company is engaged in spreading its reach beyond its traditional markets.
Kinetic Motors Company Limited (KMCL)
• KMCL has a rich heritage spanning over 3 decades
• Luna was introduced by KMCL which was a big hot among Indian Market
• Manufactured India's first gearless scooter “Kinetic” which revolutionized the two-wheeler industry
Mahindra Acquisition of Kinetic
• The acquisition was done in 2008.• The consideration for the acquisition is a sum
of Rs. 110 crores plus 20 percent stake to KMCL in the New Co. M&M will hold the balance 80 per cent of the equity.
• Acquisition of KMCL was a defining moment in Mahindra’s History as it gave Mahindra a presence in almost every segment of automobile industry.
Factors which prompted M&M to Acquire Kinetic
• India was 2nd largest producer of two wheelers• Two wheeler industry grew from 3 million in 1998 to 8 million in 2008• Domestic sale grew from 3 million in 1998 to 7.2 million in 2008 at the
CAGR of 9.2%• Higher disposable household incomes and increased discretionary
expenditure on personal transportation, outlook for the two-wheeler business in India was positive
• With sharply rising environmental concerns and favourable consumer attitudes in the West towards “green” vehicles, two-wheelers provide cleaner, quieter, more fuel efficient transport solutions.
• Kinetic had also introduced new technologies to India including four valve engines, electric start on scooters and motorcycles, v- twin engines, USD forks, etc. It was also the only company to offer top-end world class bikes, Comet and Aquila, to the Indian bike enthusiasts.
Synergies
• Acquisition was of strategic fit• Strong in house design and development competencies
provided by Mahindra Engineering Services, with acquisition of Italy based design house coupled with KMCL’s expertise to provide a significant position in rapidly growing two wheeler market
• The deal will enable Mahindra to design and market a range of scooters, value engineered motorcycles and high-end motorcycles for the Indian and global markets, helping it establish a robust, end-to-end two-wheeler business in every segment of the industry.
• There are several macro environmental trends which make the scooter market especially attractive to Mahindra
• These include a younger, more affluent customer base with a significant number of empowered women and increased scooter demand in tier-2 cities and small towns. M&M is strongly positioned to cater to this demand, given the company's significant presence and brand equity in these markets.
• For Mahindra, two-wheelers are an additional touch-point for consumers to interact and bond with the ever expanding universe of Mahindra products and services
• It allows M&M to engage and build relationships with customers at a relatively early stage of the 'personal transport solutions' value chain
Benefits for Kinetic
• Kinetic will use the money from the sale mainly to repay Rs 60 crore worth of long-term debt on its books
• The sale of Kinetic’s operating assets will leave the company with real estate assets valued at Rs 30- 40 crore
• Kinetic Motor Company also has an option to sell its 20 per cent stake in the new joint venture after seven years.
Impact on Shareholders
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Kinetic's Share Price - BSE
Kinetic's Share Price - BSE
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M&M's Share Price - BSE
M&M's Share Price - BSE
The TVS-Suzuki Breakup:2001
The Beginning
• Mr. Thirukkurungundi Venkata Sundaram (TVS) lyengar was an industrialist, the founder of TVS and Sons group of companies.
• He established the TVS in 1923.• The group diversified into 2 wheelers, automotive
components, automotive spares and financial services.• TVS group was successful in Automotive components and Two
wheeler business.• TVS Group emerged as India’s Third leading two wheeler
manufactures one among the top ten manufactures of bikes.• TVS Group business philosophy worked with Quality, Service,
Reliability, Sense of Ethics.
SUZUKI Group
• Suzuki entered India through the TVS Suzuki joint venture, originally incorporated as Indian Motorcycles Pvt. Ltd in 1982.
• The company came out with a public issue in 1984 and was named as TVS Suzuki. In the same year, the company launched its first 100-cc motorcycle, Ind Suzuki.
Early Issues• The company failed to turn this initial success of IND Suzuki
into sustainable profits due to the high import content of the vehicle and it posted losses up to 1986.
• The merger with Sundaram Clayton’s moped division provided temporary respite to the company.
• In 1987, the company launched TVS-Champ the moped for the urban segment. TVS-Suzuki product lagged behind in performance and fuel efficiency.
• TVS Suzuki posted losses consecutively for three years 1989-1991.
• In 1990-91, due to labour problems, the company had to declare a lock out for 3 months.
• The company could not meet the new emission norms.
Reasons for decline of TVS Suzuki
• Outdated 2 stroke engine technology.• High capital cost as compared to Hero Honda and Bajaj
Kawasaki.• Lower market penetration and poor distribution and
marketing efforts in North India.• High level of market competition from superior products like 4
stroke bikes of Bajaj and Hero Honda.
The Differences
• Differences between TVS and Suzuki first surfaced in 1992, when TVS approached Suzuki for more funds and technology for new models, to meet the intensifying competition in the motorcycle segment.
• Reportedly, Suzuki not only refused to provide funds and technology for the new models, but also created road blocks to the management instead of helping them
• TVS Suzuki was thus left with no option but to use its internal accruals for putting in place the turnaround strategy.
• Instead of getting new technology from Suzuki, TVS Suzuki had to re-engineer the basic Suzuki models, which led to the launch of the Samurai and the Shogun.
• The next major dispute between the two parties arose in the mid 1990s, when Suzuki, which had around 26% stake in the company’s equity holding, expressed its desire to increase the equity holding.
• According to analysts, Suzuki wanted to play a pivotal role in TVS Suzuki, similar to the one it played in MUL, by gaining sufficient management control.
• Suzuki’s demands included: Veto rights over all aspects of day-to-day management as well as in
the strategic decision-making process. Restrictions on exports and high commissions on the exports made. Compulsory imports of all dyes and capital equipment by TVS from
Suzuki. The minimum royalties to be paid for an indefinite period.
The Differences (Cont.)
THE BREAK-UP
• On September 2001, Sundaram Clayton and Japanese automobile major Suzuki Motor Corporation (SMC), partners in the joint venture TVS Suzuki announced their decision to break-up.
• TVS bought the 25.97% stake of Suzuki for Rs. 90 million increasing its stale to 58.43%
• Suzuki signed an agreement with TVS, according to which the existing licensing arrangement was to continue for 30 months. TVS agreed to pay royalty to Suzuki for this period.
After Effects
• In the motorcycle segment, TVS was now on its own to compete with the technical and financial might of other Indo-Japanese joint ventures.
• TVS over dependence on two-stroke technology was a definite handicap as the market had almost completely switched over to four-stroke engines.
• It was estimated that TVS would have to spend around Rs 2 Billion to convert to four-stroke technology.
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TVS Share Price
Impact on Shareholders
LML & Piaggio’s Joint Venture
Introduction
• Piaggio was established in 1884 in Pontedera, Italy.
• It was one of the world's leading producers of motorized two-wheeled vehicles.
• The LML was incorporated on the 1st May, 1972, at Kanpur. It was initially into production of leather and synthetic yarn and then moved to produce specialized machinery and finally to produce two wheelers.
The Deal
• In 1984 LML had a technical collaboration agreement with Piaggio of Italy and a scooter project was set up.
• The contract was later converted into a technical and financial joint venture in 1990.
• Both the piaggio and LML promoters had an equal stake of 23.6% and rest was with public and financial institution.
Reason for the Deal
• LML– To get technical know-how.– They had the infrastructure and production resources.– Responsible for Management, Finances, Sales
• Piaggio– Access to newer geographies.– They already had the scooter technology.– Quality Control
Break-Up
• On July 1998, under the Piaggio’s restructuring plan they were planning to merge 4 companies with Piaggio and a change in shareholding pattern.
• LML promoters opposed this move and Singhania's had cited a clause in the joint-venture agreement based on which the Indian partners enjoyed the right to acquire Agnelli's stake in LML following his death.
• Finally they had an out of court settlement in which LML paid 13.5 cr for the 23.6% stake @Rs 14.06/share.
• But in turn LML got Rs 46 cr from Piaggio in form of termination of contracts and advance share application money.
The outcome of settlement
• LML shall, however, retain non-exclusive rights to use all Piaggio technology received for all vehicles other than Piaggio motorcycle.
• Piaggio will also be free to set up any business in India including manufacture of two-wheeler except motorised two-wheelers powered with later engine till December 31, 2007.
• LML and Piaggio will not use trademarks, logos and brand names of each other.
LML Share Price
020406080
100120140160180
LML
LML
Current status
• LML is producing its NV series of scooters and selling its 4 stroke and 2 stroke scooters in the states of Punjab, Haryana, Delhi, UP, Rajasthan.
• It is also planning to re-launch its motorcycles range to get a establish a national network.
• Piaggio has entered the Indian markets again by launching Vespa 125.
• It is planning to launch new vehicles in the coming time.
RENAULT-NISSAN’SSTRATEGIC ALLIANCE MODEL
Renault-Nissan• Renault-Nissan Alliance is a strategic Franco-Japanese partnership
between automobile manufacturers Renault, based in Paris, France and Nissan, based in Yokohama, Japan since 1999;
• The two companies are joined together through a cross-shareholding agreement
The benefits of alliance with respect to other strategies
• In the market for car manufacturers, the only appropriate strategy is that allows the rapid acquisition of new skills.
• Strategy of horizontal diversification.– Merger– Acquisition – Alliance
• Complementarities between the strengths and weaknesses of both companies
• Distinctive resources and competencies• Learning: major challenge - little degree of synergy would cause a high
cost of restructuring• Advantages of the alliance before merger and acquisition
economies of scale, geographically diversification, the reputation, the bargaining power
Internal AnalysisStrengths Renault Weakness Nissan
Cost Control Debt Recurring Losses
Innovation, creativity, imaginationLack of creativity and renewal of its
Products
Overall management and strategic platformsproduction and supply
Poor management capacity
Privileged relationship with suppliersSupplier relationships (vertical Keiretsu) in
mismatch with a globalization strategy
Capacity Management Management & slow conformist
Strengths Nissan Weakness Renault
Quality Products of poor quality Timeliness of Filing Delay in production time
37% of the total distribution in the U.S. and 28%Japan
Lack of notoriety in Japan & USA (0% of the distribution)
18.5% of cars with engines up torange on all of their production
Opportunities insufficient to justify the development
and production of top-end engines (4.5%)
• Two principles:– Developing all potential synergies by combining the strengths of both
companies through a constructive approach to deliver Win-Win results– Preserving each company’s autonomy and respecting their own
corporate and brand identities• Three objectives:
– To be recognized by customers as being among the best three automotive groups in the quality and value of its products and services in each region and market segment.
– To be among the best three automotive groups in key technologies, each partner being a leader in specific domains of excellence.
– To consistently generate a total operating profit among the top three automotive groups in the world, by maintaining a high operating profit margin and pursuing growth.
Nissans problems before the alliance
• Nissans problems before the alliance– Company was falling apart – $ 20 billion in debt
• The reasons of the problems– Recession in early 90’s in Japan– There was complacency and a lack of urgency in the culture– There was no cross-functional and cross-regional communication– The design of the cars was out of touch with the market – A high degree of bureaucracy– There was an emphasis on engineering culture rather than
managerial culture and promotions– Sticking in the Keiretsu model
Renaults problems before the alliance
• Main source of revenue - small to medium size cars in Europe
• 85 % of sales in Western Europe• No international market
Objectives of the Alliance
Synergies and Success Factors
• Quality between the relationships among the managers and engineers of Renault and Nissan
• Business experience• Technical skills• Core values:
– Balanced relations between the two companies and the development of strong identities for each of the brands
• Other factors:– Alliance charter– Capital contributions and equity participations– Management structure and exchange of personnel
• Combined vehicle sales have increased from 4.9 million units in 1999 to more than 8.03 million units in 2011 (including Sales AvtoVAZ)
• World's fourth-largest automotive group (2010)• Significant presence in major world markets
(United States, Europe, Japan, China, India, Russia)• The rise in sales resulted in the Alliance capturing
10.7% of the global auto market in 2011;
MAHINDRA-SSANGYONG ACQUISITION
Deal Structure
• In April 2010, the company released a statement citing interest of three to four local and foreign companies in acquiring SsangYong Motor Company;
• The companies were later revealed to be Mahindra & Mahindra Limited , The Ruia Group of India and SM Aluminum, Seoul Investments and Renault Samsung of South Korea.
• In August 2010, Mahindra & Mahindra Limited was chosen as the preferred bidder for SsangYong.
• The acquisition was completed in February 2011 and cost Mahindra $463 million for 70% stake.
Why Acquisition?
• Ssangyong was in debt owing $626 million to financial firms and subcontractors.
• It has been under court-led restructuring since February 2009 as the global recession hit car sales.
• Mahindra and Mahindra wanted to expand their market in USA and china after this deal.
• The Korean maker of Rexton and Kyron SUVs and the chairman luxury sedan also exports to China, Russia, Europe and the Middle East.
• The coming together of Mahindra and Ssangyong will result in a competitive global UV player.
Synergies and Success factors
• Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy
• Ssangyong has strong capabilities in technology, innovation and R&D
• Ssangyong also has strong international sales network
• The global presence of Mahindra and Ssangyong combined, jointly they will be able to achieve more success in the global market.
M&M Share Price
Ssangyong Share Price
Daimler Chrysler Merger: 1998
Daimler Chrysler Merger
• In 1926, the merger of two German automobile manufacturers Benz & Co. and Daimler Motor Company formed the German company Daimler-Benz. Its Mercedes cars were arguably the best example of German quality and engineering.
• In 1998, Daimler-Benz and U.S. based Chrysler Corporation, two leading global car manufacturers, agreed to combine their businesses in what was perceived to be a ‘merger of equals’.
• The merged entity ranked third (after GM and Ford) in the world in terms of revenues, market capitalization and earnings, and fifth (after GM, Ford, Toyota and Volkswagen) in the number of units (passenger-cars and commercial vehicles combined) sold.
• In 1998, co-chairmen and co-CEOs, Schrempp and Eaton led the merged company to revenues of $155.3 billion and sold 4 million cars and trucks.
Rationale for the Deal
• Short Term Rationale• Cost Cutting• Worldwide integration• Rationalization• R&D savings• Value pricing strategy• Plant Closings
• Long Term Rationale• Global presence• Strong brands• Broad product range• Technology leadership
Daimler’s need for an American Partner
• Despite a booming U.S. economy, its luxury vehicles had captured less than 1% of the American market.
• Its vehicle production method was particularly labour intensive - requiring nearly twice as many workers per unit produced over Toyota's Lexus division.
• It recognized that it could benefit from an economy of scale in this capital-intensive industry.
• With $2.8 billion in annual profits, remarkable efficiency, low design costs, and an extensive American dealership network, Chrysler appeared to be the perfect match.
Terms of the Deal
• Daimler-Benz shareholders receive one share of the new company for every share they currently own.
• Chrysler shareholders receive 0.547 of the new company's shares for every Chrysler share they own.
• At current market prices, the deal values Chrysler at nearly $58 a share, up from its last closing closing price of 48-11/16.
• The companies expect to realize cost savings of $1.4 billion in the first year after the merger and $3 billion in savings over the next several years.
• The company will have headquarters in Germany and Michigan but it will be incorporated in Germany and have a traditional German structure with separate supervisory and management boards.
• The combined company would have $92 billion in market value and an estimated $130 billion in annual revenue as the fifth-largest automaker in the world.
Impact of Merger on Shareholders
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Chrysler Share Price - NYSE
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Axis Title
Axis Title
Comparison of Daimler Benz and Chrysler
Daimler Benz Chrysler
Corporate Structure Hierarchical Structure Team-orientated
Corporate Cultures Management processes of planning, organizing and controlling. More conservative, efficient and safe.
Setting goals, directing and monitoring implementation. Known as the risk-taking underdog
Customer proposition The driving image and experience associated with the highest quality available in the market
Attractive, eye-catching design at a very competitive price
Value chain Emphasis on engineering, design, quality and after sales service
High volume, low cost manufacturing and distribution
• Chrysler and Daimler-Benz's brand images were founded upon diametrically opposite premises.
• Chrysler's image was one of American excess, and its brand value lay in its assertiveness and risk-taking cowboy aura, all produced within a cost-controlled atmosphere.
• Mercedes-Benz, in contrast, exuded disciplined German engineering coupled with uncompromising quality.
• These two sets of brands, were they ever to share platforms or features, would have lost their intrinsic value. Thus the culture clash seemed to exist as much between products as it did among employees.
Culture Clash
Distribution & Sales Systems Issues
• Distribution and retail sales systems had largely remained separate owing generally to brand bias.
• Mercedes-Benz dealers, in particular, were averse to including Chrysler vehicles in their retail product offerings. The logic had been to protect the sanctity of the Mercedes brand as a hallmark of uncompromising quality.
• This hindered the Chrysler Group's market penetration in Europe, where market share remained stagnant at 2%.
• Potentially profitable vehicles such as the Dodge Neon and the Jeep Grand Cherokee had been sidelined in favour of the less-cost-effective and troubled Mercedes A-Class compact and M-Class SUV, respectively.
Conclusion
• Synergy savings are only achieved when two companies can produce and distribute more efficiently than when they were apart.
• Owing to culture clash and a poorly integrated management structure, DaimlerChrysler was unable to accomplish what its forbears took for granted : profitable automotive production.
• Finally on May 14, 2007 DaimlerChrysler AG sold 80.1% of its stake in the Chrysler Group to Cerberus Capital Management for US$7.4 billion.
Present Situation
• Chrysler filed for Chapter 11 Bankruptcy Protection in the U.S.A. in 2008
• On January 20, 2009, the Italian Fiat and Chrysler LLC announced that they have a non-binding term sheet to form a global alliance.
• Under the terms of the agreement, Fiat took a 35% stake in Chrysler and gained access to its North American dealer network.
• In exchange Fiat provided Chrysler with the platform to build smaller, more fuel-efficient vehicles in the US and reciprocal access to Fiat's global distribution network.
• The federal government provided Chrysler $6.6 billion in exit financing.
Geely’s Acquisition of Volvo : 2009
Introduction• Volvo Car Corporation was part of Ford Motor Company's Premier
Automotive Group (PAG), along with Jaguar, Aston Martin and Land Rover. While part of the PAG, the company grew in its range of vehicles significantly.
• Ford Motor Company offered Volvo Cars for sale in December 2008, after suffering losses that year.
• On October 28, 2009, Ford confirmed that, after considering several offers, the preferred buyer of Volvo Cars was Zhejiang Geely Holding Group, the parent of Chinese motor manufacturer Geely Automobile.
• Geely only started to manufacture cars in 1998. But it has quickly grown into one of the country's leading private companies, with its sales increasing by nearly 60 percent last year.
Geely’s Acquisition • On December 23, 2009, Ford confirmed the terms of the sale to
Geely had been settled. A definitive agreement was signed on March 28, 2010, for $1.8 billion
• The European Commission and China's Ministry of Commerce approved the deal on July 6 and July 29, 2010, respectively.
• The deal closed on August 2, 2010 with Geely paying $1.3 billion cash and a $200 million note.
• Biggest overseas acquisition by a Chinese automaker• As China hasn't got many high-end cars, coupled with Volvo's
reliable and environmentally friendly reputation, industry analysts believe that Volvo's prospects in the Chinese market look good and that Geely's move will further encourage other Chinese auto makers to do the same.
Product Life-Cycle
Competitive Strategy
Geely VolvoCulture Chinese culture Swedish culture, western
culture
Market 95% in China, and the restfor export
Truly international
Finance 2009 Profit of 188 million USD Loss of 653 million USD
Price range 40000-112000 183000 - 583000
Segment Low cost and low qualitysegment
Premium segment
Customer base Chinese customers for quality products with competitive price
World-wide customers fordriving experience and safety
Brand Only known in China, low cost and low quality Luxury or nearly luxury brand over the whole world, famous for its safety record
Innovation Very limited innovation due to the short history Very innovative, particularly in safety technology
Growth High growth, thanks to the explosive domestic market of China. A growth of 59% during 2009.
No growth during the last ten years, and negative growth during the finance crisis. A negative growth of 10.6% during 2009.
Impact on Shareholders
05/01/2
004
29/03/2
004
21/06/2
004
13/09/2
004
06/12/2
004
28/02/2
005
23/05/2
005
15/08/2
005
07/11/2
005
30/01/2
006
24/04/2
006
17/07/2
006
09/10/2
006
01/01/2
007
26/03/2
007
18/06/2
007
10/09/2
007
03/12/2
007
25/02/2
008
19/05/2
008
11/08/2
008
03/11/2
008
26/01/2
009
20/04/2
009
13/07/2
009
05/10/2
009
28/12/2
009
22/03/2
010
14/06/2
010
06/09/2
010
29/11/2
010
21/02/2
011
16/05/2
011
08/08/2
011
31/10/2
011
23/01/2
012
16/04/2
012
09/07/2
01202468
101214161820
Ford's Share Price
Ford's Share Price
08/12/2006
09/02/2007
13/04/2007
15/06/2007
17/08/2007
19/10/2007
21/12/2007
22/02/2008
25/04/2008
27/06/2008
29/08/2008
31/10/2008
02/01/2009
06/03/2009
08/05/2009
10/07/2009
11/09/2009
13/11/2009
15/01/2010
19/03/2010
21/05/2010
23/07/2010
24/09/2010
26/11/2010
28/01/2011
01/04/2011
03/06/2011
05/08/2011
07/10/2011
09/12/2011
10/02/2012
13/04/2012
15/06/2012
17/08/20120
0.51
1.52
2.53
3.54
4.55
Geely's Share Price
Geely's Share Price
Issues moving forward for Volvo and Geely
• Brand and Customer Loyalty• Cost Structure• Language Issues• Cultural Differences:– Social Structure– Keeping in Time Schedule– Respect and consideration for others– Respect of rules and written procedures
Thank You!
