Shanghai Automotive and Ssangyong Motor: A Tale of Two Dragons (B)

This second case of the three-case series describes events from the time the deal was signed in October 2004 through October 2006. The new owners faced a range of major challenges to achieving the objectives driving the acquisition. These included significant resistance and distrust from the Ssangyong union, local media, community and government, as well as the negative reactions to SAIC’s responses to these challenges. The case serves as a basis for assessing integration management, as well as rich material for discussing stakeholder management in a cross-border acquisition. It also highlights the particular challenges facing a newly-internationalizing firm like SAIC that has no experience managing such issues abroad.