Analysis of M&A in Vehicle Industry: Evidence from Geely’s Acquisition of Lotus

Research Article
Open access

Analysis of M&A in Vehicle Industry: Evidence from Geely’s Acquisition of Lotus

Sili Wei 1 , Mingze Xie 2 , Tianyang Yu 3*
  • 1 Xi’an Jiaotong-Liverpol University    
  • 2 Donghua University    
  • 3 Beijing Wuzi University    
  • *corresponding author
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/36/20231802
AEMPS Vol.36
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-093-6
ISBN (Online): 978-1-83558-094-3

Abstract

With the continuous improvement of China’s domestic economic level, the automobile manufacturing industry is developing rapidly, the market competition is fierce, and the automobile market is gradually becoming saturated. The reduced market demand has led to higher and higher requirements for the technical level of domestic automobile manufacturers. In 2013, China proposed the “Belt and Road” initiative, which brought new opportunities to some domestic auto companies. Geely Group seized the opportunity to acquire Lotus. This paper mainly analyzes the reasons for Geely’s acquisition of Lotus, and this paper analyzes Geely’s acquisition of Lotus through two aspects of finance and motivation. In terms of motivation, this paper analyzes policy, society, external environmental factors of Geely Group through economy and technology through P EST model. Meanwhile, SWOT is used to analyze the advantages, disadvantages, opportunities, and internal factors of Geely’s acquisition of Lotus. On the financial side, through the analysis of each financial indicator, trend, causality, growth, and revenue. According to the analysis, after the acquisition of Lotus, Geely’s enterprise strength has been improved to a certain extent, and the future development prospects are expected.

Keywords:

automobile market, PEST, SWOT, acquisition

Wei,S.;Xie,M.;Yu,T. (2023). Analysis of M&A in Vehicle Industry: Evidence from Geely’s Acquisition of Lotus. Advances in Economics, Management and Political Sciences,36,152-162.
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References

[1]. China Merchants securities, Automotive industry mid-term 2022 investment strategy: “intelligent control, electric future” accelerated development, https://www.hanghangcha.com/pdf.html, last accessed 2023-04-04.

[2]. Guotai Jin’an Securities, Charging pile industry report: resonance at home and abroad, charging pile into the fast track of development, https://www.hanghangcha.com/pdf.html, last accessed 2023-04-07.

[3]. Zhang, X.: New energy vehicle industry analysis: Taking the BYD company, for example. China storage and transportation, 268(01):151-152 (2023).

[4]. Yu, Y., Dai, X.: New energy vehicle industry development research is based on the Porter diamond model. Industrial innovation research, 91(14), 47-49 (2022).

[5]. Liang, S.: New energy vehicle industry investment analysis report: Taking Tesla as an example. Economic and trade in the north, 460(03), 131-133 (2023).

[6]. Tang, H., Jiang, D.: Digital mergers and acquisitions and digital transformation of enterprises: connotation, facts and experience. Economist, 268(04), 22-29 (2020).

[7]. Meng, F., Gu, Z.: Mergers and acquisitions, integration, social capital and knowledge transfer: Based on the case study of Geely’s acquisition of Volvo. Management journal, 34(05), 24-40 (2021).

[8]. He, J.: Review of the drivers and risks of cross-border mergers and acquisitions. Mall modernization, 975(18), 7476 (2022).

[9]. Zheng, F., Peng, X., Zeng, Tian.: The influence of foreign mergers and acquisitions on national brands: Take German FAG Group acquired Northwest Bearing Company as an example. Journal of Hubei University of Economics (Humanities and Social Sciences Edition), 20(04), 54-56 (2023).

[10]. Wang, K.: Analysis of the effectiveness of strategic transformation through cross-border mergers and acquisitions. University Of The Inner Mongol (2015).

Cite this article

Wei,S.;Xie,M.;Yu,T. (2023). Analysis of M&A in Vehicle Industry: Evidence from Geely’s Acquisition of Lotus. Advances in Economics, Management and Political Sciences,36,152-162.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-093-6(Print) / 978-1-83558-094-3(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.36
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. China Merchants securities, Automotive industry mid-term 2022 investment strategy: “intelligent control, electric future” accelerated development, https://www.hanghangcha.com/pdf.html, last accessed 2023-04-04.

[2]. Guotai Jin’an Securities, Charging pile industry report: resonance at home and abroad, charging pile into the fast track of development, https://www.hanghangcha.com/pdf.html, last accessed 2023-04-07.

[3]. Zhang, X.: New energy vehicle industry analysis: Taking the BYD company, for example. China storage and transportation, 268(01):151-152 (2023).

[4]. Yu, Y., Dai, X.: New energy vehicle industry development research is based on the Porter diamond model. Industrial innovation research, 91(14), 47-49 (2022).

[5]. Liang, S.: New energy vehicle industry investment analysis report: Taking Tesla as an example. Economic and trade in the north, 460(03), 131-133 (2023).

[6]. Tang, H., Jiang, D.: Digital mergers and acquisitions and digital transformation of enterprises: connotation, facts and experience. Economist, 268(04), 22-29 (2020).

[7]. Meng, F., Gu, Z.: Mergers and acquisitions, integration, social capital and knowledge transfer: Based on the case study of Geely’s acquisition of Volvo. Management journal, 34(05), 24-40 (2021).

[8]. He, J.: Review of the drivers and risks of cross-border mergers and acquisitions. Mall modernization, 975(18), 7476 (2022).

[9]. Zheng, F., Peng, X., Zeng, Tian.: The influence of foreign mergers and acquisitions on national brands: Take German FAG Group acquired Northwest Bearing Company as an example. Journal of Hubei University of Economics (Humanities and Social Sciences Edition), 20(04), 54-56 (2023).

[10]. Wang, K.: Analysis of the effectiveness of strategic transformation through cross-border mergers and acquisitions. University Of The Inner Mongol (2015).

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