In: Operations Management
1- What might be the underlying motivations of Geely's
acquisition of foreign auto brand?
2- How does cooperation in international business offer
competitiveness?
3- What role can the government play in promoting
internationalisation?
China Globalises London's Black Cabs lobalisation
refers to international transactions, co- company for last 70
years. Coventry city is the birth place of operation, and
competition among firms. China has British motor industry and has
long tradition of manufacturing become one of the most active
trading nations in an iconic automobile brands like Jaguar, Rover,
Triumph, and increasingly globalised world. China's pursuit in
transforming Armstrong Siddeley. The FX4 model taxis rolled out in
1959 itself into an industrial economy gave birth to a thriving
auto from Coventry plant set the quintessential shape for the black
mobile industry and Geely Automobile Holdings Limited was cabs.
They formed partnership with Geely in 2006 which fi- founded in
1986. Geely is a subsidiary of Li Shufu's Zhejiang nally acquired
the taxi maker in 2012 for £11.4 million after it Geely Group. They
began with motorcycle production and went into administration.
London Taxi Company's current annual eventually started
manufacturing cars in 1997. Geely's moto production is
approximately 2000 taxis. Geely has been con- of 'Happy Life, Geely
Drive' encompasses its customers, sup- stantly investing to
increase capacity and competitiveness since pliers and human
resource to manufacture safe, environmental acquisition. The
company has recently announced a £250 friendly and god value
automobiles. Relentless pursuit of bet million investment to build
a new factory with a production ter technology, foreign brands and
oversees market resulted capacity of approximately 36000 cars
annually. This new in- in Geely's European acquisition of Volvo
cars in 2010 and vestment is celebrated locally and nationally due
to 1000 new London Taxi Company (LTC) in 2012. jobs creation and
boost to the local economy. Geely's ambition London Taxi Company is
the manufacturer of the iconic to put iconic London taxis in all
major cities in the world require London Black Cabs. Coventry has
been the home of the lots of innovation in emission technology and
globalising the London taxi experience. The current technology is
not suitable The Chinese state extended its support to fund Geely's
for bigger cities due to high emission, less fuel efficiency and
oversees ambitions. China EXIM bank is offering a 20 billion bulky
weight. The company has pledged to invest a further £80 yuan credit
line to Geely. This is exciting news for privately million in
research and development of TX5 model with hybrid owned enterprises
in China as favourable credit lines were engines. Hybrid and
electric taxis are expected to roll out from mostly available for
the state owned enterprises (SOEs) until the new factory in 2018.
recently. This is an expected move from new Chinese leader- Western
manufacturers are also developing strong manu- ship team under
chronic overcapacity and mounting losses of facturing bases in
China to tap the opportunities presented the State Owned
Enterprises. by the increasing purchasing powers of Chinese people.
Geely's ownership of London Taxi Company is an ex- Competition from
foreign manufacturer, cost pressures due ample of multinational
corporations (MNCs) from emerging to stringent regulatory
requirements at home and volatility in economies acquisition in the
industrial hearts of developed some export markets are some of the
current challenges for countries. This is a fairly new phenomenon
in international Geely. The management is searching for new
opportunities to business which becoming more and more common with
grow- overcome these challenges. ing powers of emerging
economies.
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